Camden tannery deal still in limbo

CAMDEN – It appears likely that 2004 will end with the fate of the former Apollo tannery still in limbo.

In late 2003, United Trust Fund, a development company based in Miami, signed an agreement to purchase the dormant industrial property on Washington Street from the town. Fred Berliner, a senior vice president with UTF who summers in Camden, said Friday the agreement will expire at the end of the month without the deal being closed.

The company, however, still is interested in buying the industrial property, and Berliner will be in Camden next week and expects to meet with town officials about extending the purchase agreement.

“We’re working on a number of things,” Berliner said. He declined to disclose specifics before meeting with the town.

UTF agreed to pay the town $100,000 for the property, which includes a three-story, wood-frame factory building that dates to the 19th century, several outbuildings and 3.5 acres along the Megunticook River.

The company put up $25,000 in earnest money for the purchase agreement dating through June 30 of this year. When it was unable to purchase the property in June, UTF exercised two options to extend the agreement by 90 days each. Each extension required an additional $5,000.

The company will get its money back if the sale is not closed.

Though the site is contaminated from more than a century of industrial use, Berliner said there were no surprises when UTF studied the property for environmental problems and engineering challenges.

Berliner told the Select Board last year that the company hoped to find an anchor business, perhaps a medical center, to enter into a lease with UTF. UTF then would develop retail shops and apartments on the property.

The curve ball Berliner was not expecting was credit card lender MBNA’s decision to vacate its substantial offices in Camden late last year, creating a glut of commercial real estate.

“MBNA moving out has not helped,” he said. “They were the biggest user of commercial real estate in town.”

Still, Berliner is confident that Camden is a safe bet for development.

“I think Camden continues to be an attractive place to live and work,” he said.

UTF has discussed redeveloping the Apollo site with many potential clients, but no one particular business is waiting the wings, Berliner said.

The town acquired the property when its previous owner, operating as Apollo Tanning, failed to pay property taxes.

The agreement with UTF included a 20-foot-wide easement along the river on which a pedestrian path could be developed.