SACO — A plan to move the boiler system in a city-owned property on Saco Island could make the property more marketable, but would require the loss of two parking spaces. 

The city acquired a property in the former mill complex on Saco Island known as Unit 91 in lieu of unpaid property taxes from the Island Terrace Owners Association in early 2016. 

Unit 91 is a multi-use space in the otherwise residential Island Terrace condominium building. The unit encompasses about 29,000 square feet of a former mill building, plus an additional 29,000 square feet on the lower level that includes a 41-space parking garage and storage area.

Since it acquired the property, the city has spent time working on property issues including negotiating easements. 

Dirgo Management, which manages the Island Terrace Owners Association, would like to replace the boiler system. The current boiler system is located in a separate building and heats the Island Terrace building through underground piping. 

Dirigo Management would like to place the new boiler system on the lower level of the building, which would impact two parking spaces in the Unit 91 garage. The Island Terrace Owners Association has asked the city for an easement for the two spaces. 

The City Council discussed the matter briefly at a workshop on Monday night. 

City Administration Kevin Sutherland said the two spaces could be rented out for $150 a month, and the loss of two spaces would mean the loss of $1,800 a year potential revenue.

A boiler system that wouldn’t require an easement would cost an additional $75,000, and the city’s share of that would be about $18,000, according to Sutherland. 

Sutherland said having a resolution in place for the heating and cooling system of the building will make the building more marketable and he has suggested the city negotiate an easement with the association that would grant an $1,800 annual credit toward the heating and cooling bill. 

Mayor Marston Lovell said having the heating unit in the building would enhance the property and make it more attractive to potential buyers. 

An agreement proposal will go before the City Council at its April 2 meeting. 

Meanwhile, the city is hoping to find a buyer for Unit 91.

“The property has been looked at by about a dozen or so potential developers,” said Sutherland. 

Sutherland said there are two parties interested in the property. The city has not received an offer yet but he hopes there will be one on the table next month.

— Staff Writer Liz Gotthelf can be contacted at 282-1535, ext. 325 or egotthelf@journaltribune.com.