By David Harry
Staff Writer

Although no decision can be expected until next month, town councilors last week expressed enthusiasm for a financing plan to help convert the former Konica/Minolta plant on Route 1.
At its Sept. 2 meeting, the council was presented a plan to help pay for the infrastructure changes needed to turn the former photo processing center into the Foundation Center, a medical office building developer Robert Gaudreau envisions will bring 250 to 300 jobs to the area on Route 1.
The plan is to create a tax increment financing zone for15 years to repay debt service of the $325,000 Gaudreau estimates it will cost to alter access from northbound Route 1 and reconfigure the access road to the building.
After getting Planning Board approval for Foundation Center last month, Gaudreau said some kind of town assistance was needed if he was to get the project underway.
Council chairman Michael Wood praised the development plans as “an attractive and unique opportunity for the town.”
Gaudreau, the president of Portland-based Hardypond Construction, also redeveloped the former Humpty Dumpty potato chip plant near the former Konica/Minolta plant as Nonesuch River Plaza.
Citing a 3 percent tenant turnover rate at the plaza, Gaudreau said he envisions the same stability in the 65,000 square-foot building now owned by GR I Scarborough LLC.
Gaudreau said last month he has a sales agreement negotiated to buy the building. Andrew Gilmore, a consultant hired by Gaudreau who helped present the plan to the council, said Gaudreau will buy the land and building for less than the $2.3 million town assessed value.
Gilmore estimated renovation costs to be about $3.3 million, including extending the left turn lane from Route 1 and shifting the entrance to the building 30 feet north along Route 1.
Gaudreau and Gilmore said a tighter credit market requires Gaudreau to invest more of his own money to get the project done.
The tax increment finance plan between the town and state will allow the town to enter into an agreement with Gaudreau to repay the infrastructure costs with increases in tax valuation, said Harvey Rosenfeld, the president of the quasi-municipal Scarborough Economic Development Council.
Gaudreau told the council he felt “completely blindsided” by the need to shift the entrance road to the building and said the project cost is getting high enough for him to reconsider his plans.
“The cost burdens are over the razor’s edge of, ‘Why am I looking to do this?’” Gaudreau said.
Rosenfeld said the plan was a good one because the town faces no financial liability. In addition to retaining the current tax revenues from the property, additional money from the increased value will eventually go to the town general fund. No additional valuation means no financial return for Gaudreau.
Rosenfeld said similar zones were established at the Enterprise Business Park off Route 1 and along Haigis Parkway in the area of Cabela’s.
As councilors discussed the initial plans, Shawn Babine said the 15-year term was his only reservation about the plan.
Town Manager Tom Hall said he anticipates a full plan for the tax zone will be ready in time for the council meeting Oct. 6.
As approved by the Planning Board, renovation in stages could begin in the fall. Gaudreau said he wants to have about 15,000 square feet ready for renting and work on the parking at the building could begin next spring.
Gaudreau said last month at least two tenants were interested in renting space, but declined to name potential occupants.
Because Maine Medical Center and the Foundation for Blood Research are close by, Gaudreau said expects steady long-term tenants to be attracted to Foundation Center.
“In the end, this will be a gateway property,” he said.

Staff writer David Harry can be reached at 282-4337, ext. 219