Brewer mill location open to other developers

BREWER – A tentative developer agreement that gave Minnesota-based developer Michael Stern exclusivity with regard to redeveloping the former Eastern Fine Paper Co. mill site has expired, and other developers now are expressing interest in the project.

“We have been contacted by others,” D’arcy Main-Boyington, Brewer deputy economic development director, confirmed Monday. “At this point, we are free to talk with them about what they’re interested in doing” or how the process with Stern is developing.

The lack of action by Stern, however, is worrying at least one city councilor.

“I’m really kind of discouraged, to be honest with you,” City Councilor Larry Doughty said Monday. “Things have been in limbo.”

Stern was selected by the city as the developer for the former industrial site project in January, but no official agreement has been signed. The city and Stern have signed two tentative developer agreements, one in May and one in October, both of which have expired. The October agreement expired Nov. 30. Stern unveiled multimillion-dollar plans earlier this year to change the former industrial site into a “city within a city” that has housing, retail space and entertainment areas, called The Mill at Penobscot Landing.

The concept plans for The Mill include antique lampposts with brick walkways and benches and store facades that resemble a downtown area, which also includes an open market.

“By the terms of the [most recent tentative developer] agreement, nobody in city government could talk with other developers,” Main-Boyington said. “At this point, we are no longer legally bound to do so. It doesn’t mean that our plans with Mike have changed or our discussions have ended.”

Another developer contacted the city the day after the agreement ended, and the phone continues to ring, she said.

“There are a lot of reasons” the agreement with Stern hasn’t been signed, Main-Boyington said. “We’re still negotiating. We can’t [seem to] arrive at agreements about some portions of the agreement.

“We’re gradually getting closer together; we’re not getting farther apart,” she added.

The city created South Brewer Redevelopment LLC to take ownership of the site after it was given to the city in May 2004 as part of the sales agreement of Eastern Fine’s parent company.

Since taking ownership, SBR has moved forward with the site’s environmental cleanup and has removed several outlying buildings. It also has applied for and received federal funds to assist with redevelopment.

Costs to provide amenities, which residents and city leaders have indicated are wanted at the 41-acre South Main Street site, are holding up the agreement with Stern, Main-Boyington said.

“One or more of those elements may have to come out before it works,” she said.

Stern, in a phone interview Friday, said he is continuing to move forward on the project, but added there could be changes to the site’s initial concept plans.

“It’s a process,” he said. “Even the planning side of it.”

Two tenants that showed interest in the project early on have withdrawn, and in doing so slowed the process, Stern said. He said he is taking it slowly to ensure the best project is developed at the Penobscot River locale.

“What the site has more than anything else is spectacular river frontage,” he said. “The plans I have [take advantage of the river’s assets], but the market is a little bit slow to develop right now.”

Doughty said he is still hopeful that Stern will sign a developer agreement with the city, but the councilor added he is tired of waiting for things to happen.

“Now [that] we can talk to other developers, they’re knocking down the doors,” he said. “We’re lucky in that respect.

“If Mike pulls out tomorrow, I think we’ll be all right.”