http://pressherald.mainetoday.com/story.php?id=221774&ac=PHnws
Portland to sue state over pier dispute
The city seeks ownership of the sea floor, trying to clear up an issue that has halted planned redevelopment.
By MATT WICKENHEISER Staff Writer
November 13, 2008
The city of Portland will sue the state to secure ownership of the sea floor beneath the Maine State Pier - an issue that has halted the redevelopment project planned for the property.
The city has maintained it owns the submerged land beneath the pier, but Maine Attorney General Steven Rowe contends the property belongs to the state.
The City Council's Community Development Committee recommended Wednesday night that Portland terminate negotiations with The Olympia Cos., the developer the city had picked for the project.
Olympia wouldn't begin to spend at least $500,000 in due diligence work while the title to the land remained in question.
Olympia President Kevin Mahaney said at a City Hall press conference this morning that the potential financial risk to his company was too great going forward with an unresolved title to the submerged land.
City Attorney Gary Wood said this morning that Portland would proceed with legal action against the state to clear up the title, and a lawsuit would be filed by January. He said a resolution in the case could take between a year and 18 months.
City Councilor Cheryl Leeman said the new City Council, to be seated Dec. 1, would have to choose how to proceed with the project. Several options exist, said Leeman. The Council could put it out for another request for proposals. It could see if Ocean Properties, which lost the bid for the project, would take on the development. It could sign the master development agreement with Olympia, with the understanding that no work be done until the title is cleared. Or it could do nothing, she said.
And Mainebiz's slightly more severe, brief take on the story:
http://www.mainebiz.biz/news43736.html