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PUBLIC MARKET SALE
# 1998: The Libra Foundation, a charitable trust established by the late Elizabeth Noyce, opens the Portland Public Market as an attempt to help farmers and small businesses and extend economic development into the city's Bayside neighborhood.
# February 2006: The Libra Foundation announces that it wants to sell the Public Market and its other Portland properties.
# June 2006: Libra announces it has reached a deal with an unnamed investment group to buy the market and its other properties. The new owners are not interested in operating the market, Libra says.
# August 2006: Guggenheim Real Estate LLC is revealed as the buyer. The firm says it will evaluate how the 32,000-square-foot market building can be reused.
# November 2006: Portland Public Library officials say they're interested in acquiring the building for some of their programs.
The new owner of the Portland Public Market would like to sell the building to the Portland Public Library.
"It's really theirs if they want it," said Morris Fisher, president of Boulos Property Management, which represents the owner.
Fisher and a library official say they expect the matter to come to a head within the next month, as city councilors take a closer look at any proposed deal. The purchase would need voters' approval.
Fisher is a spokesman for Guggenheim Real Estate LLC, which bought the Public Market building and other Libra Foundation properties last summer. Guggenheim is asking $4 million for the building, but Fisher said that's negotiable.
The library's interest in the 32,000-square-foot building became public last fall. Its main branch is on Monument Square, at Congress and Elm streets. The market building is behind the main branch, at Cumberland and Elm streets.
The?80,000-square-foot?library opened in 1979. In 2004, Portland voters approved a $4 million bond to renovate it.
The renovation project, worth a total of $8.5 million, has been delayed for more than a year, and the city has delayed borrowing the $4 million, because the library has had trouble raising its $4.5 million share. The library has raised about $2.2 million, officials said.
When the market building became available, officials recognized that the glass-and-timber landmark, with its high ceilings and street-front windows, would be an inviting environment and could be an alternative to renovating the existing library.
The library is among several potential buyers. Other parties, which may want to convert the building to office or retail space, have been making inquiries, Fisher said. In recent weeks, though, the library has emerged as Guggenheim's preferred choice.
"It's still on the market," Fisher said. "But we have told the city, 'we will work with you.' With any luck, we'll see some positive movement in the next few weeks."
As a privately held real estate investment firm, Guggenheim has a financial obligation to investors. But the company also is sensitive to the community's desire to see the space remain in public use, Fisher said.
Fisher is on the library's board of directors, and has recused himself from the negotiations.
Talks have been led by a subcommittee of the library's board. Nathan Smith, a former city councilor and board vice president, said the group is trying to come up with terms that the City Council will embrace.
"I think we're making good progress with the seller," he said.
Smith said he thinks the $4 million asking price is too high, and suggested the two parties will be able to settle for less. But more than price is at issue.
The proposal needs the City Council's support, and a referendum would have to be scheduled, possibly by late spring. The city also would want to sell the existing library building at some point and use the revenue to offset the market purchase.
"There are a lot of moving parts," Smith said.
Fisher said Guggenheim is waiting to get a read on how councilors will react. "I suspect we'll know that in a month or so."
Fisher said Guggenheim is anxious to sell the building because it's virtually vacant and not generating any income. Romeos Pizza is the only remaining tenant.
Guggenheim has negotiated a buy-out agreement, Fisher said, and will terminate the pizza restaurant's lease when a sale occurs.
Staff Writer Kelley Bouchard contributed to this report.
Staff Writer Tux Turkel can be contacted at 791-6462 or at:
tturkel@pressherald.com
Reader comments
Jeff of Vonore, TN
Jan 18, 2007 10:41 AM
Fits right in with the direction of the city......another social service with no chance of future income. Great!
Wow, it's hard to believe that the City of Portland keeps shooting itself in the foot. Are a majority of Portland's 60,000+ residents really in support of all this crap?
Dan of Standish, ME
Jan 18, 2007 10:15 AM
Nobody gives a crap about the Portland Public Library! Portland can't afford to renovate/move it. Basically, its only patrons are Portland High Schoolers on lunch break, or skipping school.
MainelyJack of New Gloucester, ME
Jan 18, 2007 9:21 AM
Hmmmmmm. So a bond issue was approved to "renovate" the existing library. (4 million) And the library has had a bit of a problem raising matching funds to complete the monies necessary, but has raised 2.2 million.
Now, rather than renovate the library, the intellectually challanged Portland City Council is considering buying the Portland Public Market building. This is being encouraged by a Morris Fisher, President of Boulous Property Management which represents the owner of the building and who is also on the Board of Trustees of the Library. Fisher, we are told, has recused himself from negotiating the price (a no brainer) but seems to be active in promoting the idea (treading close to the ethical line, aren't we Morris?).
The developing scenario reminds me of a current commoercial for Verizon where Dad, on Christmas morning, still wearing his robe asks his children what they got for Christmas. Each recounts the receipt of a Verizon product. And then he asks, "What did Dad get?" "After shave" is the response. Whereupon he says, "No, Dad got hosed," and walks away.
Well, it strikes me that the City of Portland may be about to get hosed by this chummy arrangement between Fisher and the city as it considers taking a white elephant of a building of the real estate market. The PPM was a great building for it's oroiginal use, but I have a hard time seeing how this space gets transformed into an adjunct of the PPL without a great deal of renovation expense. Meanwhile, if that happens and the money from the bond issue, et al is usued, the original library building will not get renovated which was the intent of the bond issue and those that donated to the matching funds.
Hopefully, the PCC wil turn away from this proposal and get about the project that was originally contemplated. Portland citizens have been hosed enough lately.