Biddeford Approves Moratorium on Condo Conversions

A proposal to convert existing apartments at the historic Pepperell Mill building in downtown Biddeford into condominium units generated a spirited discussion at the October 15 City Council meeting, and resulted in a 6-2 vote (with Belanger and Lessard in opposition) to institute an emergency six-month moratorium on condominium conversions city-wide.

Presidium, the real estate firm that acquired the Pepperell Mill campus in December, 2021 distributed a two page letter to its 154 residential tenants the week before the meeting. In the letter, Presidium’s Chris Rhoades described “…an opportunity that could create home ownership possibilities here at Pepperell Mill by transitioning the existing apartments into condominiums…”

Early in the public comment period at Tuesday’s meeting, Rhoades outlined Presidium’s plan, which he said has been under discussion with the city for the past six months. Current tenants of the apartments would be presented with these choices under the plan:

·         • The opportunity to purchase a unit before the general public at an off-market price without competition,

·         • The participant’s last month’s rent would be free,

·         • A buyer’s credit of 3.5% of the purchase price would be added to the settlement statement at closing, available for closing costs or use as a down payment,

·         • The chance to qualify for a 90% mortgage with Androscoggin Bank, which Presidium has partnered with to provide such a possibility.

Existing tenants who choose not to buy a unit would not be forced to move immediately, and would effectively be able to continue as renters at Pepperell Mill for three more years, under his plan. Eventually, however, all existing apartment units would be converted to condos.

Rhoades went on to outline plans for dozens of more apartment units. The city has permitted 76 additional units in Building 11 which are scheduled to become available in 2025. Plans call for sixty more apartment units to be constructed within Buildings 19 and 20.

After hearing from Rhoades and several other speakers, the council discussed the situation and the course it plans to take.

“We’ll schedule a Council workshop shortly, and I would imagine this will be referred to an existing committee for its consideration,” said Council President Liam LaFortune after the meeting.

LaFountain was careful to say that the city is not trying to disallow condominium conversions in the longer term. He pointed to his reasons for supporting the moratorium:

“We as a city are ill equipped to handle 150 condo units,” he said. “We’ve created a thriving downtown where people live, work and play. This (conversion) would create units for a less inclusionary type of housing.”

Rhoades outlined asking prices for the units that would be converted to condominium units under the initial offer: twenty current units would be offered in prices ranging up to $299,999. Thirty-seven units would be offered at prices up to $399,999, and forty-two units would be offered for up to $499,999. “Some” luxury units would be offered in the $800,000 range, he added.

A bit of support for the plan conversion was offered during the public comment period. Derek Schroeder, a current tenant, voiced support for the plan and said he looks forward to the chance to buy a unit. Erin Odom, a realtor who is working with Presidium on the proposal, cited the median price of the units being offered as $441,000, and said that 64% of the units would be priced at less then $500,000. She added that the median price for condo units in York County as of September 2024 was $515,000, and for Biddeford it was $500,000.

Others, however, were less than enthusiastic about the proposed conversion.

“I remember Presidium’s promise to be a good community partner,” said Ryan Fecteau of Clark Street, recalling when the firm purchased the property from former owner Doug Sanford. “Far too many young people cannot access home ownership. What I’ve observed over the past several years is a company that’s seeking to squeeze as much profit out of those buildings as they possibly can.”

Presidium’s letter to tenants stated that the starting price of units will average about $500 per square foot. Amenities that tenants are accustomed are spelled out on the company’s website: wood floors, stainless steel appliances, granite countertops and exposed brick walls and wooden beams The campus offers on-site recycling and composting, pet washing stations, and fenced-in dog park, and bike storage.

Tenants were advised in the letter that repairs to buildings, and upgrades to the common hallways, landscaping and bridges could be expected.

For his part, Rhoades expressed disappointment but also the hope that as the process moves forward, progress will be possible.

“After many months of working in good faith and with transparency with the city on our conversion application, we believed everything was in order,” he stated in an e-mail two days after the meeting. “The applications were in, the fees were paid. The moratorium came out of the blue, and while it's certainly disappointing, we'll continue to communicate with city leaders to see what comes next. We can share more as we learn more in our discussions with the City.”

Bob Hamblen can be reached at rhh0918@gmail.com