January 18, 2022
Business

Ariz. developer facing deadline to purchase Hathaway building

WATERVILLE – An Arizona developer has a week to decide whether he’s going to move forward with his $950,000 purchase of the shuttered Hathaway shirt plant, a city official said Tuesday.

Michael Peloquin has sought to renegotiate terms of the sale of the brick factory but the city is not interested, said City Solicitor William Lee, who wants a decision before the City Council meeting on April 15.

“I need to know, thumbs up or thumbs down,” Lee said. “They’ve had plenty of time to think about it.”

C.F. Hathaway, whose shirts were made famous by the logo of the man with the eye patch, manufactured shirts in Waterville for 165 years before it shut down in October. More than 200 workers lost their jobs.

Peloquin, whose company Atlantic Partners LLC has developed residences and office buildings in the Southwest, was moved by the story of Hathaway and decided to try to restart the plant.

The cash deal was struck in February, when the City Council voted to authorize the sale of the five-story factory.

But Peloquin never signed the purchase-and-sale agreement, and he needs to notify the city of his intentions before the Council meets on April 15 for final approval of the sale, Lee said.

His attorney, Andrew Abraham in Phoenix, did not immediately return a message at his office seeking comment.

Peloquin has sought to renegotiate the agreement so he would be making payments to the city instead of making a lump-sum payment, but the city is unwilling to change the agreement, Lee said.

If the city doesn’t obtain Peloquin’s signature and $50,000 in earnest money, it will begin marketing the building elsewhere, Lee said.

The price, which was originally $1.3 million, has been lowered to $950,000, which reflects the property’s appraised value.

The money would be used to partially repay the government agencies that invested or loaned $1.6 million to purchase and improve the factory under a deal to keep it going in 1996-97.


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