Council sells Cunningham lot
By Kathy McCarty
Staff Writer
PRESQUE ISLE — Councilors voted 6-1 Monday night to sell the lot at the corner of Blake and Third streets, that formerly served as home to Cunningham Middle School, to CSP, LLC.
CSP, LLC, is owned by Michael and Carol MacPherson of Presque Isle.
Discussion took up a considerable portion of Monday’s three-hour meeting, with councilors debating whether to sell the lot now to the highest bidder or extend a decision to a later date to allow another party interested in the property a chance to submit an offer. Earlier this fall councilors authorized City Manager Jim Bennett to seek a realtor to handle the sale, with ReMax being selected to represent the city in the transaction. A market price of $79,900 was set, with the winning bid for the parcel matching the asking price.
City Manager Jim Bennett advised councilors a second bid had been placed for $79,000. Councilor Bruce Sargent indicated he’d spoken with a third party who was also interested in bidding but had not seen the newspaper advertisement in time to respond. Sargent indicated the party already has property in Presque Isle and has been interested in the Cunningham lot since the city first placed it up for sale about three years ago. At that time, the asking price was about $200,000 and was more than the individual wanted to pay for it.
When the building was demolished, it cost the city roughly $200,000 to do so. The original asking price had been set in an effort to recoup those funds. It was decided this year it was in the best interest of the city to sell the property and get it back on the tax rolls so it could start generating income for the municipality. Research was done and it was determined a fair market price was $79,900.
Sargent said since this was prime property, the matter should be tabled to another meeting to allow time for others to express interest in the property. Council Chair Emily Smith said she understood wanting to make the most of the property but Council also had a fair purchase agreement for the asking price before them.
“We’re here for the taxpayers. We need to do what’s best (for them),” responded Sargent.
Former Councilor Don Gardner was in attendance and asked how the $200,000 spent to demolish the building would be recovered. Smith told Gardner the new owner’s taxes will go to cover the balance, once the $79,900 is applied. Taxes will be applied toward that figure until it is paid off.
Sargent said councilors should be cautious and that “regardless whether one or two people are late to supper, they should still be allowed to eat.”
“It’s city property. If someone puts a lawn as opposed to a building, the city would get minimal taxes yearly,” continued Sargent, noting the person he talked to from Caribou had blueprints for the site and was interested in building housing of some type, which would in turn generate considerable tax money.
Councilor Peter Hallowell said although he agreed with Sargent, “the city listed the property at $79,900 and this bidder came forward and it was advertised.”
Councilor Craig Green said the party Sargent referenced could make an offer to the new owner if he’s so interested in the parcel.
“We have an agreement for what we asked for. Let market forces work. Let the other party make an offer to buy it,” said Green.
Bennett said in the near future, when the closing is performed on the property, councilors could “deal with how to address the gap” between the sale price and cost of demolishing the former middle school.
“Once we have that dialogue, once Council decides — we’ll take action to formalize the process, then see if we can find the money and pay for it and be done with it,” said Bennett, recommending the item be put as one of councilors’ work items for February.
With discussion concluded, the majority of councilors voted to accept CSP, LLC’s bid of $79,900.
