Staff Writer

City councilors continue to grapple with the future of Saco’s Central Fire Station as they review proposals to use the building for a public market, affordable senior housing and programs to teach self-sustainability.

The Saco City Council must decide what to do with the Thornton Avenue station that will be vacated when the fire department moves next month to its new facility on North Street. Mayor Ron Michaud said he expects the council to decide March 21 whether to put the building on the open market or accept one of three proposals for the property.

A seven-member ad-hoc committee last year examined the fate of the 73-year-old brick building and recommended the city council put out a request for proposals. Proposals from Nate Libby Masonry, Saco Spirit, Waterman Development LLC and Don Burdick of Eat A Fish Inc. were received after the deadline. Councilors discussed the proposals at a workshop Monday evening.

City staff suggested councilors list the property on the open market. The assessed value of the station and office building is $498,100, according to City Assessor Daniel Sanborn. Two commercial brokers estimated the market value of the station at $298,000 and $395,000. Four councilors said they support putting the station on the open market for four to six months.

City councilors last month gave Nate Libby and Saco Spirit time to work on a joint proposal, which was presented to councilors this week. Libby proposes buying the building for $40,000 to use as a base for his company and space for Saco Spirit to create a public market.

Johanna Hoffman, president of Saco Spirit, said the nonprofit group met several times with Libby in recent weeks to develop plans for the station. Libby, who lives in Saco and wants to relocate his business to the city from Biddeford, would use the office building and part of the station for his company, she said. The rest of the building would be used by Saco Spirit to create Firehouse Public Market, community meeting rooms and studio and performance space for artists.

Hoffman said a public market would support local agriculture and the working waterfront in Camp Ellis and bring more people downtown to shop.

 “It would give people a reason to come downtown at night,” she said. “This particular idea, this concept, can create a destination for downtown.”

Hoffman said members of Saco Spirit have looked to Waterville for inspiration. Barrels Community Market opened three years ago with a similar mission of supporting local agriculture and businesses in a space also used by the community for special events, she said.

Hoffman said Barrels, located in a former shoe store, has helped with the revitalization of downtown Waterville. The market in its first year exceeded sales projections with $290,000 in sales, she said.

“It’s really a parallel of what we’re looking to do in the center of our downtown,” she said.

If the council accepts Libby’s proposal, Saco Spirit will partner with University of New England students to do a market study on the viability of the public market plan, Hoffman said. 

Libby estimates it will cost nearly $447,000 to bring the building to code. Despite the amount of needed work, he said he is confident the public market could open right away and the building would be completely restored within two years.

“We can basically jump right into this and get going,” he said.

Jay Waterman, owner of Yarmouth-based Waterman Development LLC, on March 1 submitted a letter of intent that outlined his interest in buying the building to redevelop into affordable senior housing.

“I think this is a great site for senior affordable housing” because of its proximity to shopping and public transportation, he said.

Waterman said there is a demand for senior housing rentals in the Saco area and his plan complements the city’s Comprehensive Plan. If his offer is accepted, Waterman said he would apply for tax credits to help create 25 housing units in the building.

Waterman offered $225,000 to $275,000 for the property conditional on current zoning, which would allow the density and proposed use. He said he would like to reserve the right to discuss potential tax increment financing with city officials. Tax increment financing is a public financing method that uses future gains in taxes to finance current improvements.

Councilors also heard from Burdick, who said he would like to lease the building from the city to provide programs for people who recently lost or are about to lose their homes. He said 20 people could live on site while learning self-sustaining skills such as urban gardening.

Burdick said allowing him to lease the building for a few years would give the city time to market and sell the building when the economy is stronger.

“This is not the time to sell a piece of property,” he said.

Councilor Eric Cote said he is interested in the public market proposal, especially after seeing a “terrific” public market in Charleston, S.C.

“It’s exciting to think about,” agreed Councilor Margaret Mills.

Cote said he thinks Libby’s proposal is the best the city has received. He expressed doubt about the feasibility of creating 25 residential units in the station and suggested there are better locations elsewhere in the city.

Mills said she is concerned about the amount of work needed to address the “very poor condition” of the building.

“I think it will take a lot of money to make it usable and up to code,” she said.

Councilor Arthur Tardif said it is time for the city to put the building on the open market for at least four months to see what other offers come in. Councilors Jeff Christenbury, Marston Lovell, Marie Doucette and Mayor Michaud voiced support for his suggestion.

Councilor Leslie Smith Jr. said he must weigh the benefits and drawbacks of the proposals from Libby and Waterman. The benefit of Libby’s plan is the city would receive some money up front and collect taxes once the building is sold. The “fringe benefit” is creating a public market that will increase foot traffic downtown, he said.

Smith said he must weigh those benefits against Waterman’s proposal, which comes with a higher sale price. He said he does not support the idea of using TIF funds on a project proposed by a for-profit business.

“I don’t know if we’re gaining anything except a couple bucks,” he said of the second proposal.

Michaud said he does not feel the council is at a point where it can make a final decision about the fate of the building. He said councilors should do their homework to ensure they are making the best decision for the city.

“We need to take our time to make the right decision for a long-term basis,” he said.  

Staff Writer Gillian Graham can be reached at 282-4337, ext. 213.