Konica TIF approved, developer seeks tenants
By David Harry
Staff Writer
Scarborough town councilors like picturing a vacant photo processing plant as a new medical office complex.
On Oct. 7, the council unanimously approved a plan to pay for the road repairs needed to convert the former Konica/Minolta building into a 65,000 square-foot complex developer Robert Gaudreau envisions as a complement to the nearby Maine Medical Center campus.
“I am overwhelmed and grateful they could see this help is necessary,” Gaudreau said about the approval of a credit enhancement plan and tax increment finance zone that will reimburse Gaudreau $325,000 over 15 years for work needed to alter the intersection of Route 1 and Science Park Drive and extend a left turn lane on northbound Route 1.
The money paid through the credit enhancement agreement will be funded by future valuation increases on the 6.6-acre triangular property tucked into the area near the intersection of Route 1 and the I-295 connector, said Harvey Rosenfeld, president of the Scarborough Economic Development Corporation.
Maine Department of Transportation standards require a longer left turn lane because of increased traffic flow in and out of the proposed complex. Plans approved by the Planning Board in August called for shifting the Science Park Drive intersection about 30 feet north on Route 1, while about 10 feet of a concrete divider on Route 1 is removed to add space for the turning lane.
Gaudreau said he was told of the access requirements when approaching the Planning Board in the summer and had asked for help paying for the road work in part because of tighter credit market requiring him to use more of his own money to pay for building renovations.
Gaudreau first needs to complete the purchase of the former photo processing plant from GR 1 Scarborough LLC, a company owned by Monks-O’Neill Development. Gaudreau declined to comment on the purchase price, but said he hopes the deal will be closed in the next two weeks so renovation on the building can begin by early next month.
When fully occupied, Gaudreau said the proposed offices could employ 250 to 300 people.
Andrew Gilmore, a consultant with Monks-O’Neill Development, which is owned in part by Cape Elizabeth developer Robert C. S. Monks, told Scarborough councilors last month that the property will be sold for less than its town assessment of $2.31 million.
Gilmore also estimated that work to bring the building up to code will cost at least $1.2 million and require a new roof. Rosenfeld estimated Gaudreau will invest about $3 million in the property.
GR 1 Scarborough LLC bought the property for $4 million in 2005 and Konica signed a seven-year lease to use the processing plant, Gilmore said. In 2006, Konica officials decided to cease all U.S.-based operations and vacated the plant, Gilmore said.
The plant has been unused since then, and a zoning change in 2007 prohibits the heavy industrial and manufacturing use the building was designed for when built in 1975, Gilmore said.
Gaudreau, the owner of Portland-based Hardy Pond Construction, said the conversion of the building is the third or fourth such project his company has taken on. One of those projects is Nonesuch River Plaza, home to offices and businesses in the former Humpty Dumpty snack food plant just north of the Konica plant on Route 1.
Gaudreau’s work at Nonesuch River Plaza drew praise from councilors and Rosenfeld.
“I have never met anyone with the guts Bob has,” Rosenfeld told councilors as he spoke in support of financing. Tax increment finance zones are created with state approval through the Department of Economic and Community Development, while the credit enhancement agreement will be between the town and Gaudreau.
Rosenfeld said he supports the plan because the town will be paying Gaudreau only if the current tax assessment of $28,000 goes up from an increase in the property’s value. Those payments will extend over 15 years, and the town keeps the taxes from any increases in valuation after that, Rosenfeld said. He also expects a fairly quick approval for the tax increment finance zone.
The time needed to get financing help has already altered his renovation plans, said Gaudreau, who originally envisioned attracting tenants to partially fill the building this winter, but cannot begin the roadwork until spring.
Instead, Gaudreau said he hopes to begin gutting the interior of the building and getting leases signed by future tenants.
“It is better to be conservative than out there dreaming,” Gaudreau said.
The phased renovation plan also calls for increased parking at the site and planting trees along the front of the building and along the rear of the property to obscure the view of the highway.
In supporting the financing plan, Councilor Richard Sullivan called the redevelopment “a bonus for the people of Scarborough and the risk is minimal.”
Gaudreau said renovation and redevelopment are what he enjoys.
“I would love for tenants to appear, though. It would make my life easier,” he said.
Staff writer David Harry can be reached at 282-4337, ext. 219
Staff Writer
Scarborough town councilors like picturing a vacant photo processing plant as a new medical office complex.
On Oct. 7, the council unanimously approved a plan to pay for the road repairs needed to convert the former Konica/Minolta building into a 65,000 square-foot complex developer Robert Gaudreau envisions as a complement to the nearby Maine Medical Center campus.
“I am overwhelmed and grateful they could see this help is necessary,” Gaudreau said about the approval of a credit enhancement plan and tax increment finance zone that will reimburse Gaudreau $325,000 over 15 years for work needed to alter the intersection of Route 1 and Science Park Drive and extend a left turn lane on northbound Route 1.
The money paid through the credit enhancement agreement will be funded by future valuation increases on the 6.6-acre triangular property tucked into the area near the intersection of Route 1 and the I-295 connector, said Harvey Rosenfeld, president of the Scarborough Economic Development Corporation.
Maine Department of Transportation standards require a longer left turn lane because of increased traffic flow in and out of the proposed complex. Plans approved by the Planning Board in August called for shifting the Science Park Drive intersection about 30 feet north on Route 1, while about 10 feet of a concrete divider on Route 1 is removed to add space for the turning lane.
Gaudreau said he was told of the access requirements when approaching the Planning Board in the summer and had asked for help paying for the road work in part because of tighter credit market requiring him to use more of his own money to pay for building renovations.
Gaudreau first needs to complete the purchase of the former photo processing plant from GR 1 Scarborough LLC, a company owned by Monks-O’Neill Development. Gaudreau declined to comment on the purchase price, but said he hopes the deal will be closed in the next two weeks so renovation on the building can begin by early next month.
When fully occupied, Gaudreau said the proposed offices could employ 250 to 300 people.
Andrew Gilmore, a consultant with Monks-O’Neill Development, which is owned in part by Cape Elizabeth developer Robert C. S. Monks, told Scarborough councilors last month that the property will be sold for less than its town assessment of $2.31 million.
Gilmore also estimated that work to bring the building up to code will cost at least $1.2 million and require a new roof. Rosenfeld estimated Gaudreau will invest about $3 million in the property.
GR 1 Scarborough LLC bought the property for $4 million in 2005 and Konica signed a seven-year lease to use the processing plant, Gilmore said. In 2006, Konica officials decided to cease all U.S.-based operations and vacated the plant, Gilmore said.
The plant has been unused since then, and a zoning change in 2007 prohibits the heavy industrial and manufacturing use the building was designed for when built in 1975, Gilmore said.
Gaudreau, the owner of Portland-based Hardy Pond Construction, said the conversion of the building is the third or fourth such project his company has taken on. One of those projects is Nonesuch River Plaza, home to offices and businesses in the former Humpty Dumpty snack food plant just north of the Konica plant on Route 1.
Gaudreau’s work at Nonesuch River Plaza drew praise from councilors and Rosenfeld.
“I have never met anyone with the guts Bob has,” Rosenfeld told councilors as he spoke in support of financing. Tax increment finance zones are created with state approval through the Department of Economic and Community Development, while the credit enhancement agreement will be between the town and Gaudreau.
Rosenfeld said he supports the plan because the town will be paying Gaudreau only if the current tax assessment of $28,000 goes up from an increase in the property’s value. Those payments will extend over 15 years, and the town keeps the taxes from any increases in valuation after that, Rosenfeld said. He also expects a fairly quick approval for the tax increment finance zone.
The time needed to get financing help has already altered his renovation plans, said Gaudreau, who originally envisioned attracting tenants to partially fill the building this winter, but cannot begin the roadwork until spring.
Instead, Gaudreau said he hopes to begin gutting the interior of the building and getting leases signed by future tenants.
“It is better to be conservative than out there dreaming,” Gaudreau said.
The phased renovation plan also calls for increased parking at the site and planting trees along the front of the building and along the rear of the property to obscure the view of the highway.
In supporting the financing plan, Councilor Richard Sullivan called the redevelopment “a bonus for the people of Scarborough and the risk is minimal.”
Gaudreau said renovation and redevelopment are what he enjoys.
“I would love for tenants to appear, though. It would make my life easier,” he said.
Staff writer David Harry can be reached at 282-4337, ext. 219
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