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GREAT DIAMOND ISLAND — Smashed windows, dusty debris and puddles of water from a leaky roof attest to decades of neglect endured by a former torpedo storage building at Fort McKinley.
Most developers wouldn’t think twice about razing such an aging building, overgrown by trees and brush. Instead, it will be transformed into an 18-room bed and breakfast overlooking the Atlantic off the Portland coast.
“All along, my desire has been to find a way to breathe new life into this,” David Bateman said.
The real estate developer is rewriting history at Fort McKinley by transforming barracks into townhouses, a quartermaster’s storeroom into a restaurant, a wagon shed into an art gallery.
While creating Diamond Cove — a $20 million island residential community — Bateman has given a new lease on life to a historic site.
Bateman’s development may be the wave of the future as the private sector is called upon more often to preserve the nation’s historic properties, said Randall Biallas of the National Park Service in Washington.
Such private investments are the cornerstone of the park service’s goals for keeping costs in line while protecting historic properties during a time of budget-cutting fervor in Congress.
“In the future, there are going to be a lot of these innovative partnerships,” said Biallas, the park service’s chief historical architect.
Bateman was ahead of the curve in the booming 1980s when he envisioned turning the 19th century Fort McKinley into an island community.
Once the heart of Portland Harbor’s defense, the fortress fell into disrepair after the Army abandoned it after World War II.
The 193-acre property was considered such a liability that the city of Portland turned down an offer to take it for a dollar. The fortress was later pilfered of anything of value, down to the door knobs.
Private development, in this case, was the last hope for preserving the colonial revival buildings that were in danger of being lost, said Earle Sheuttleworth, director of the Maine Historic Preservation Commission.
“This is not a time when any branch of government looks at acquiring more historic properties, worthy as they may be,” Shettleworth said. “The money is just not there.”
Great Diamond Island’s colorful history dates back 175 years, when Portlanders made day trips for picnics and artists were drawn to the rugged beauty of the rocky coast.
Visitors included novelist Harriett Beecher Stowe, poet Henry Wadsworth Longfellow and artist George Mariner.
When the Army arrived in 1891, soldiers replaced the summer visitors and a fortress was carved out of virgin forest. Cobblestone roads were blasted out of granite, barracks were built and gun emplacements constructed on the scenic bluffs overlooking the entrance to Portland Harbor.
The cannons are gone now. And the barracks surrounding the parade ground have been transformed into townhouses starting at $130,000. There also are the standard accoutrements of a resort: a heated swimming pool, tennis courts, a beachside bar, even a small movie theater.
Most of the developments were created out of existing buildings. The former quartermaster’s storeroom is a popular restaurant that draws mainland residents. The blacksmith’s shop is a general store. The old swimming pool is a stocked trout pond.
Diamond Cove will eventually have about 150 housing units, including some lots that will be developed. So far, there have been more than 30 buyers and the development is halfway complete. Once completed, 68 percent of the property will remain in its natural state, Bateman said.
Residents and guests putt around in golf carts. No cars are allowed, in keeping with the historical theme.
Bateman’s wife, Robin, has invited artists to the island and established summer theater to rekindle the island’s artistic past. An art gallery displays paintings created on the island.
“There’s a real tradition of painters and the islands. It’s nice to have someone try to cultivate that,” said Mark Haltof, a Cape Elizabeth artist who spent a year painting on the island.
Things were not always so idyllic.
The original project, called McKinley Estates, drew opposition from people who decried the “yuppiedom” of Maine’s islands. The ambitious project failed along with the bank that financed it.
With new backers, Bateman continued to pursue his dream and won over many critics in the process.
“As far as I know, most people are pleased that they seem to be doing well. If there’s a consensus, that’s probably it,” said Charles Stockman, who lives on the other side of the island 1 1/2 miles from Portland.
Such partnerships between government and the private sector are crucial to maintaining historic properties. The National Park Service has spurred investment by offering tax credits to developers like Bateman.
The park service also is considering leasing some properties to the private sector, or selling some properties with certain stipulations to maintain their historical integrity.
Bateman hopes to qualify for a 20 percent federal tax credit to recoup some of the $20 million invested by New Hampshire-based Lyme Timber Co., which is financing his creation.
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