Maine City Eyes Redevelopment

The city of Portland, Maine, is in final negotiations with a railroad company to develop a business and technology park at an abandoned rail yard. While the initial plan is to acquire the rail site, the city also is looking at the possibility of acquiring additional land adjacent to the rail facility.

Several of the businesses that are in the adjoining land are scrap recycling companies.

Ric Nolan, a spokesman for the city of Portland’s development department, said that the agency has been in final negotiations with Guilford Railroad to acquire around 7 acres. Plans call for the city to convert the abandoned yard into a commercial district that would include offices, manufacturing space and stores.

According to the Portland Press Herald, the Bayside Business & Technology Park is expected to cost $11 million, with most of the money coming from the federal government. The U.S. Department of Housing and Urban Development has committed to a $1 million grant. U.S. Sens. Olympia Snowe and Susan Collins announced that the U.S. Economic Development Administration will send $1.5 million for the first phase of the project.

Further down the road, the city is considering adding to the roughly 7 acres by purchasing an additional 7 acres. This additional space includes two recycling companies, E. Perry Iron and Metal and Maine Metal Recycling.

Those scrap yards also occupy land that would make up the park.

Alan Lerman, with E. Perry Iron and Metal, says that the announcement surprised their company. He said the last time the city spoke with E. Perry was around 20-30 years ago. The company has been in operation for around 100 years at the location.

While there has yet to be any discussions about the possibility of purchasing the additional land, a spokesman for the city says that after completing the initial purchase of the rail property, interest could move toward these other facilities. “Once we get through this (rail yard purchase) we will focus on the scrap yards.” If the city opts to go ahead with expanding the acreage for the park they may approach the recycling facilities to relocate their facilities.

However, all parties say that any move in this area will be far down the road. As for Lerman, his concerns are more on maintaining his business during the difficult market conditions now being seen.

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