The Waterworks restoration and low-income housing project is essentially complete, and hopefully it will shine as both the preservation of a historically significant facility and as a place of service for a growing, chronically underserved population in Greater Bangor. I would like to thank those involved with our project as well as offer more information about the project.

In the 10 or so years before 2003, the Waterworks facility had been proposed as a site for several projects ranging from condominiums to office space for Eastern Maine Healthcare to a restaurant. As everyone discovered, the development costs were enormous, but the largest problem was the lack of enough property for adequate parking. The city was faced with the problem of what to do with a rapidly decaying facility that was a safety hazard to the residents of Bangor and potentially an ecological disaster if it were to collapse into the Penobscot River.

For a time, razing the buildings seemed like the only answer, except that the price tag could have been more than $2 million due to the debris needing to be classified as hazardous waste. The city found that if it donated the buildings for low-income housing and supplied some development funds, the expense to taxpayers would be significantly less and the buildings would be saved.

We began looking at funding options with the help of Maine State Housing Authority and the Low Income Housing Tax Credit Program. The tax credit program was created by former President Ronald Reagan as a way of ensuring that there would be adequate housing for the poor, while at the same time offering big business an incentive to invest in it. Basically, for every dollar of tax credits a business or group of businesses receives, they gave us 90 cents. For our project, the credits were obtained by National Equity Fund and disbursed to its clients.

This was the primary funding source for the Waterworks development. Additionally, MSHA, the city of Bangor and the U.S. Department of Housing and Urban Development contributed in the form of loans or grants. Also, Shaw House Development Inc., as developer, was eligible for a large development award, but returned all of it to the project.

No one associated with Shaw House or SHDI, including myself, received any salary or bonus. This has been a labor of love for all of us. SHDI qualifies for tax credit funding as a developer and serves as general or controlling partner in ownership of Waterworks LLP, the owner of the complex, with the National Equity Fund, a New York corporation, as primary investor.

It’s important to point out that federal law mandates that Waterworks be used only for low-income housing for 15 years, and Maine law requires low-income use for 99 years. It simply isn’t possible to turn the facility into expensive condos as some critics have suggested.

Some feel that our costs per unit could have been less by building on a new site. That’s right – to a point. Construction costs were much higher than new construction somewhere else. The problem was that the “somewhere else” simply didn’t exist. The Shaw House board of directors explored several other locations in Bangor and surrounding communities to build such a facility, but was turned away by what we call the “not in my backyard” syndrome. The Waterworks facility was available, it fit in with intended usage for the area around it, and funding was possible.

I suppose that it is natural to think that since Shaw House has children as clients, the Waterworks will as well. While there will be some 18-year-olds, by law we cannot mandate age constraints. Shaw House does not control who will live there. In fact, the only role that Shaw House has in the place is to provide social work case management for those needing it and a 24-hour presence for security reasons. Anyone 18 and older who meets the income rules is eligible for residency.

We’ve hired a company called Preservation Management whose sole reason for existing is to manage buildings like ours. They are tough, know how to deal with problem clients and have a long and proven record in the field. All applicants for residency must get through their screening. Entering into a contract with an entity such as this was a requirement of funding by all parties involved.

The benefits of preservation of historic places to both the economic and social aspects of communities has been well-documented. I speak for all involved in our project in saying we are proud to have been the leader in saving this waterfront treasure.

The Waterworks offers an opportunity to those over 18 who can benefit from an independent, safe place to live, with security and supportive social services. It’s a place for people to live a life with dignity that might not be available to them otherwise. The Waterworks really is a jewel in the city of Bangor, and I hope that most people will take pride in it. We will be holding an open house 4-5:30 p.m. May 16. Come see for yourself, and celebrate with us.

Howie Soule is chairman of Shaw House Development Inc. and president-executive director of Waterworks LLP.