SACO — The city could be working toward a potential deal on Unit 91.

The city acquired a portion of a former mill building on Saco Island in lieu of unpaid property taxes from the Island Terrace Owners Association in early 2016. 

The property, known as 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.

The property is being marketed by The Dunham Group for $450,000.

The City Council on Monday night met in an executive session to discuss “real estate and economic negotiations,” according to the agenda.

After the executive session, the City Council voted to approve a motion made by City Councilor Alan Minthorn to negotiate with Saulnier Development on a deal for Unit 91.

Mayor Marston Lovell said in a telephone interview on Tuesday that although no deal has been made, the city could be close to one. Lovell said some councilors still had a few questions regarding the proposal they wanted resolved before moving forward. 

Bernie Saulnier of Saulnier Development has proposed a large mixed-use development on six acres of land he owns on the east side of Saco Island. 

Saulnier was contacted Tuesday and said he did not want to comment on the Unit 91 proposal at this time. 

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