BIDDEFORD — On Tuesday, the Biddeford City Council took another step forward in developing its mill district, and continuing the growing resurgence of the city. The council approved a master plan development agreement for 3 Lincoln St., the former site of a waste incinerator that the city purchased in 2012.

The agreement allows BE Fitler, LLC to two create a plan for two buildings on the site of the former Maine Energy Recovery Company, one on either side of a proposed parking garage that may also be built on there — and according to the agreement the project is contingent on constructing a garage.

The developers will have the option to purchase a total of about 40 percent of the Lincoln Street site for the two buildings, either for a one-time price of $1.2 million or two separate payments of $700,000 each.

In September, the city announced it was working with developers Jim Brady and Brian Eng to develop a mix-used project on the 8 1/2 acre riverfront site.

“We’re in a position to move forward,” Economic Development Director Mathew Eddy told the council on Tuesday.

According to a city press release, the developers plan to incorporate a mix of residential, retail, office, hospitality, education and service uses in the proposed buildings. When Maine Energy closed, parent company Casella Waste Systems demolished all existing structures on the property other than a smoke stack that houses cell antennae that bring about $125,000 annually into city coffers, City Manager James Bennett said.

“Two known entities will lease the majority of the first building,” Eddy said. The University of New England has expressed strong interest in utilizing about 50,000 square feet of space, he said. Another prospect that hasn’t given permission to be named is interested in taking 30,000 square feet.

Within the next three months, according to the agreement, BE Fitler will develop a preliminary concept plan, using community input, to include the building layout, scale, and design as well as pedestrian, transit, transportation and utility connections to the surrounding downtown area. The City Council will have a chance to review plans at that point. If approved, the developers have six months to complete a final site development plan, which would go through the normal Planning Board process, Eddy said. If a mutually acceptable site development plan is agreed to, the developer has six months to acquire the necessary permits.

Both residents and some members of the council had some concerns about the development agreement.

The council shouldn’t act on the agreement for a mixed-use development at 3 Lincoln St., which is contingent on building a parking garage on the site, until a court decides on “pending litigation (that) could prohibit charging for parking,” said resident Jason Litalien. Last year, Litalien filed a complaint against the city regarding a parking management plan approved by the City Council on Aug. 7 that enabled the city to charge for parking in municipal-owned parking lots in the downtown, which it began doing in December. If he wins, the city would no longer be able to do so.

“Please take a more judicious approach with the millions of dollars at stake,” Litalien said.

“We’re excited about the prospect” of a new mill district development, said Scott Joslin, general manager of the Pepperell Mill campus. However, he wanted to ensure that “the garage is a public garage” and not limited to occupants of the 3 Lincoln St. development. Also, he said, he hopes the project doesn’t impede on his mill district development working with the city on parking.

Heart of Biddeford Executive Director Delilah Poupore said she hoped there would be “synergy between parking at 3 Lincoln and the rest of the downtown.”

Councilor Michael Ready said he was concerned about language that states “The City will be responsible, in conjunction with transportation agencies, with creating the transportation improvements necessary to support 3 Lincoln and the proposed parking garage.”

“It’s not in my mind the city’s sole responsibility,” he said.

“The city has to take the lead,” Bennett said, because only the city could work with ShuttleBus-ZOOM to possibly use a trolley to transport people from a parking garage to the downtowns of Biddeford and Saco or get a bus line such as Greyhound to pick up and drop people off at the garage.

Councilor Stephen St. Cyr asked how the city reached $1.2 million as the sale price. The city paid $6.65 million for the Maine Energy site.

“One point two million dollars is a reasonable number given the value today,” Bennett said. He noted that the city would be selling only 40 percent of the parcel, and that the city keeps the smoke stake that generates money.

In addition, Bennett said, since the city purchased the incinerator and it was taken down “the valuation of the city has gone up $200 million.” By continuing to redevelop the mill district it will not only benefit the downtown but diversify the tax base to stabilize the tax rate for residents.

“We’ve waited a long time for this to happen,” St. Cyr said. “I need to be convinced this is the right project.

The developers have completed a number of projects and have a good reputation, Eddy said. One of Brady’s Portland projects includes The Press Hotel. He also bought and is renovating Biddeford’s old post office at 27 Washington St. In addition, Eddy said, “they have the financial wherewithal to complete the project.”

“I remember Biddeford when it was the center of York County and had a thriving Maine,” Mayor Alan Casavant said. “In the last few year there is a resurgence of pride in the community I remember as a kid. … (in) moving Biddeford from an old mill town into the 21st century.”

“This particular project opens up a lot of potential,” he said. “I think what we’re doing here tonight is really, really important” to “create inner pride. … It moves the city dramatically forward.”

The council  passed the master plan development agreement for 3 Lincoln St. 8 to 1 with only Council President John McCurry dissenting.

— Associate Editor Dina Mendros can be contacted at 780-9014 of dmendros@journaltribune.com. Abigail Worthing of the Biddeford-Saco-OOB Courier contributed to this report.