A swath of land in Portland’s Bayside neighborhood once slated for a massive mixed-use development could go on the market in coming months, but city officials first have to agree on what they want to do with the vacant lots.
After hiring The Boulos Company as the city’s real estate broker for four city-owned parcels along Somerset Street, city officials, in discussions Monday prior to an executive session, appeared far apart on how to proceed.
With residents calling for more robust talks about the future of the area, city staff said Monday’s session was to simply discuss a marketing strategy for the parcels, and that the City Council would have to approve any sale. However, some councilors appeared surprised by the item, saying there had been no previous consensus on whether to sell the lots.
Others, like Councilor Sarah Michniewicz, were concerned that the property will be marketed only to large developers without consideration for public uses such as a park.
“It’s not just our responsibility to sell it, but to assess the needs of the community and make sure it’s used for its highest and best use,” she said. “That might not be just housing.”
Mayor Mark Dion argued that because the city already has a $15 million stake in the properties, putting them on the market would allow officials to see what options are available to address the housing crisis in Portland while recouping previous costs.
The immediate area has seen plenty of other development, but the Somerset Street lots have been wrapped up in a protracted legal battle, and in recent years the roughly 3.5 acres have been better known for homeless encampments and piles of snow that turn to dirt and garbage when spring arrives.
Over a decade ago, developer Federated Cos. planned the ambitious $85 million “Midtown” project there, which was delayed for years by local opposition and a lawsuit before being scaled down and winning city approvals in 2015.
However, the proposed 445-unit development, with retail space and a parking garage, was killed in 2018 after the developer missed a key permit deadline, sparking finger-pointing and a prolonged court battle.
The city reacquired three of the lots last year as part of a $15 million settlement with Federated, and in December, the city issued a request for proposals for a real estate broker. The city had already acquired one parcel through eminent domain in 2021.
During public comment Monday, some residents were concerned about what they said has been a lack of public process regarding the Bayside parcels. Steven Laudage said the city should develop a public rubric for grading development proposals, and that public engagement could help the city avoid more “frivolous lawsuits.”
Councilor Ben Grant said that while he understands the public anxiety, given a decade of “stops and starts,” officials are taking “very seriously the notion that we’re getting a second chance at this, and want to get it right.”
Other councilors said they have been receiving considerable feedback from constituents. Councilor Kate Sykes said the council “may choose not to sell,” and that the direction to market for sale came from staff.
“I feel like I’m being gaslit,” said Councilor Anna Bullett, arguing that the council agreed to use a broker to assess the value of the properties, but that there was “absolutely no consensus on marketing for sale.”
Nothing was announced after the executive session concluded.
The parcels are zoned Downtown Business, which allows for a range of residential and commercial uses with a maximum building height of 185 feet.
Michniewicz, who represents the Bayside neighborhood, said that while Portland has a housing crisis, “it’s not forever.” But, she said, parcels filled with buildings will be forever, “or at least until the tides roll in.”