September 21, 2024
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Developer has big plans for Brewer mill site

BREWER – Today marks the one-year anniversary of the day that the last Eastern Fine Paper Co. millworkers left the South Main Street site, never to return.

Today also is the day Minneapolis developer Michael Stern unveils his multimillion-dollar plans to breathe life back into the site.

South Brewer Redevelopment, a city-run limited liability corporation that controls the mill, has met with Stern for months and is announcing today that he is the developer selected to refurbish the site.

A press conference is planned for this afternoon at the mill, featuring Stern and city officials.

From the second that Stern, an 11-year veteran developer, saw the empty 400,000-square-foot building that housed the now defunct paper mill, he was very interested in its possibilities. Stern toured the mill last spring.

“It was really easy to see the history of the site – the history of the building and what it could be brought back to,” he said during a phone interview on Friday. “Especially with its placement on the riverfront. There were all kinds of opportunities that popped up into my mind.”

With all the space, he envisions a community within a community that would transform the abandoned 41-acre mill into a regional destination point that would draw people from all over Maine and also promote the arts and artists.

Eastern Fine closed its doors in January 2004, laying off all 240 remaining employees. The city took over ownership of the former mill in May as part of the sale agreement of Eastern Fine’s parent company and formed South Brewer Redevelopment LLC to assume the responsibility of owning and redeveloping the site.

The mill site has been undergoing cleanup by the federal Environmental Protection Agency and the state Department of Environmental Protection at a cost of about $1.5 million to $2 million. The EPA finished its work last fall, and the DEP is waiting for test results to determine further cleanup.

The remaining cleanup process, which will focus on specific sites along the perimeter of the property, isn’t expected to inhibit the site’s development.

The Mill at Penobscot Landing, as the redevelopment has been nicknamed in Stern’s concept plan, includes a place for artists to create, with housing, retail space, restaurants, brew pubs, boutique shopping, office space, a performance area and maybe even an ice rink, a theater, or both.

The aim is to create a destination site for people of all ages, with access by way of the river, the highway and someday maybe even by train.

“It will be designed so that individuals, couples and families will all have year-round options,” Stern’s draft document states. “A family or couple can enjoy time together at the skating rink, have lunch or dinner and then shop or enjoy a cultural arts event. An individual or couple may live and-or work on site and also enjoy these same amenities.”

Stern has been in the construction and real estate business for 18 years and has owned Stern Real Estate Services Inc. for the past 11 years. He has completed several real estate deals in Minnesota, including projects at the Long Lake Office Center, North Star Professional Center and the Plymouth Office Center.

In Brewer, Stern Development LLC, which is wholly owned by Stern, will take ownership of the former mill in order to develop the site. A development agreement is expected to be signed between the South Brewer Redevelopment and Stern at the end of February or early March.

The mill project is bigger than any Stern has undertaken, but he said he’s looking at the massive job as smaller pieces that fit together. He has a very ambitious timeline and already has chosen Greg Duginski of Minnesota as his general contractor, he said.

“Greg has completed several million dollars of redevelopment work for me,” Stern said. “He’s a decent, honest person that I know I can trust – that’s why I use him exclusively.”

In addition, Duginski has experience with several large projects refurbishing old buildings. Local contractors and subcontractors will be hired to complete the work, Stern said.

“Our job is to bring it back to economic health, and one way to encourage that is by hiring locally or regionally,” he said.

Stern, who heard from a friend with ties to Maine about Brewer, has split the job into two phases. Phase one, which is estimated to cost between $12 million and $16 million, is all about improving the site’s look.

“A large portion of the existing structure will remain, but outlying buildings will be demolished and some interior area will also be removed to open up courtyards and storefront space,” the draft states.

In the first 12 months of construction, Stern plans to complete the exterior facade work, landscaping and convert the interior space to a “vanilla shell,” which will then be ready for occupants.

Stern hopes to have his final plans complete, permits in hand, to start construction by June, with a December 2006 completion date for phase one.

Restricted-access office space and apartments on the upper levels and restaurant and brew pubs on the lower level are planned for the westernmost portion of the facility to take advantage of the river views.

More housing is planned for the old boiler room, but a museum or a theater also could be constructed there. Work on the old Penobscot River wharf also is planned.

In selecting Stern, the city did extensive research into his resume, Economic Development Director Drew Sachs, who is a South Brewer Redevelopment managing director, said Friday.

“We’ve done a lot of digging,” he said. “We spoke to tenants, investors, financiers, and we’ve spoken to the communities [leaders] where he owns property, and it’s incredible how positive they are. It’s really positive stuff.”

The city had two possible developers, but the list narrowed to one over the holidays. After hearing what people wanted at a December envisioning meeting, it was easy to see that he and residents were on the same track, Stern said.

Once a market study is complete, which is expected by the end of the month, final decisions on exactly what should be constructed will be made.

Brownstones, a hotel, transportation hub, additional retail and public parks are possibilities that could be included in phase two, said Stern, who plans to invest approximately $1 million of his own money in the project.

“I know there is a demand for affordable housing, but I don’t know the demand for condos,” he said.

City leaders are meeting with state congressional delegation members on Tuesday morning and with several state and federal agencies and Gov. John Baldacci on Tuesday afternoon.

“This project, like most major redevelopment projects, will require not only the city but state and federal entities as well,” Sachs said. “We’re meeting … to tell them what’s needed to get this thing going. We want the public to know we’re hitting the ground running.”

At the end of February or early March, Stern will unveil his final plan.

“This is a concept whose time has come in this region,” Stern said. “I’m already meeting with prospective tenants.

“My goal is to get started as soon as possible,” he said


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