Run of the Mill building auction looms as bankruptcy proceedings unfold

The rebirth of Saco Island that seemed imminent seventeen years ago has resulted in many productive changes, as long-time observers will attest. Shortly after an overall site plan for the property was approved by the Saco planning board in 2007, the first visible change was a welcome one for those who favor locally produced beer: the Run of the Mill brewpub was established on the first floor of what is referred to as Building 3.

Saco Island West, LLC closed on the building’s purchase in October 2007. Soon thereafter, the LLC’s principal agent, Kevin Mattson invited Geoffrey Houghton, owner of the Liberal Cup brewpub in Hallowell to establish a second location on Saco Island. After a period of refurbishment that capitalized on the brick and timber interior, the Run of the Mill’s taps started flowing in 2008, and has been a popular purveyor of pub food and beverages ever since.

All that may be winding down, however, as noted in a Nov.1 story on Saco Bay News. The property is subject to a number of liens, and is in arrears on property taxes going back to 2021.

All of which is not good news for Mattson, a former chairman of the Maine Democratic Party and chief of staff for the Senate majority leader in the Maine Legislature who steered his career from politics to commercial real estate in 1999, according to a 2007 article in Mainebiz magazine.

Mattson declared bankruptcy on October 31, 2024, listing assets totaling $19,580 and liabilities of $37,318,049. According to court records, a Chapter 7 petition was filed against Mattson on September 12, 2024, asking that he file a response within 21 days of the summons. Mattson eventually responded and the court allowed his request to convert the bankruptcy to a Chapter 11, which would allow Mattson to propose a financial reorganization plan to pay his creditors, rather than face the prospect of a complete liquidation of his assets.

Those who have filed claims against Mattson, along with the amount of the claims, include:

•     Severin Beliveau, $288,020. Beliveau is a founding partner of Preti Flaherty, a well regarded Portland law firm.

•     Cumberland Capital, LLC, $88,995.46.

•     Chris Marquez, $137,425.46.

•     Accelerated Capital Partners, LLC, $5,093,096.06.

According to an Oct. 7 filing with the U.S. Bankruptcy Court, District of Maine, the aforementioned “petitioning creditors …are aware of other creditors of (Mattson) with claims against his as well. Several are listed, with the notation that “…the list is likely not exclusive”:

•     Titan Funding, LLC, $1,443,934.79.

•     SW Legacy, LLC, $1.7 million.

•     Stormfield SPV I, LLC, $708,392.63.

•     Jackson Parker, $150,000.

•     6 Ecs, LLC, $2.7 MILLION.

•     Precision Doors and Hardware, $94,028.90.

•     SW Legacy, LLC, judicial foreclosure of residence where (Mattson) resides).

Beliveau and the other three ‘petitioning creditors’ mentioned earlier are represented by an array of legal firepower, including Randy J. Creswell of Creswell Law, Norman, Hanson and DeTroy, Drummond Woodsum, and Weinstein, Lovell and Ordway.

Mattson is representing himself, or as stated in court documents, pro se, a Latin term that means “in one’s own behalf.”

Observers may have concluded that Mattson, a savvy and experienced businessman, would swoop in at the last moment and pay the principal and interest due for taxes associated with the 2021 tax year, $38,046.53 according to information provided by the Saco Finance Department, thereby avoiding the auctioneer’s gavel for another year.

However, a search of the Secretary of State’s database of Maine corporations states that The ROTM Lofts LLC – the property’s current ownership group -- failed to file an annual report for 2024, and includes a notation, “Administratively Dissolved – Failure to File Annual Report,” dated Nov. 7, 2024.

Two upcoming dates may determine how Mattson’s predicament will be resolved. The Run of the Mill building is scheduled to go to auction Nov. 22 at 1 p.m., an event that will take place on site. The property is subject to a 45 day closing, and is being sold in as-is condition.

On Dec. 3, a meeting of creditors is to be held via telephone, according to a schedule provided by the U.S. Bankruptcy Court in Portland.

Built around 1838, and housing not only the Run of the Mill but also 25 loft-style apartments and about 3,200 square feet of office space, the property is assessed by the city at $3,010,800. The building sits on 4.39 acres of land, and occupies a prominent spot on Saco Island, just off Main Street.

Bob Hamblen can be reached at rhh0918@gmail.com.