Committee recommends removing Falmouth parcel from Lambert Woods North purchase agreement

The City of Portland Housing and Economic Development Committee voted unanimously to recommend that the City Council approve a third amendment to the First Amended and Restated Purchase and Sale Agreement with Lambert Woods North LLC to remove a 0 Grama Road parcel in Falmouth from the transaction.

The amendment, presented by Mary Davis, housing and community development division director, would keep the Falmouth parcel in city ownership and allow staff to market it for a future sale with proceeds proposed to be transferred to the housing trust fund at a later date. "This item is before you to make a change to a project that most of you are familiar with," Davis said as she described the change.

Nut graf: The developer, an LLC formed after Maine Cooperative Development Partners assigned its interest, has been awarded low‑income housing tax credits for a project that depends on financing tied to the Portland parcel at 622 Auburn Street. Staff and the developer determined the Falmouth parcel is not developable enough to pair with the tax credit project and asked to remove it to allow the tax credit deal to close.

Committee members pressed staff for details about the Falmouth parcel's constraints and future uses. Davis said wetlands and the lots’ configuration made the two properties difficult to develop together, and that the developer originally envisioned the Falmouth parcel as open space or trails. "There are portions of both properties that have restrictions for wetlands," Davis said, noting there are buildable upland areas but that the Portland parcel has greater value for the tax credit project. She added the developer's "tax credit proposal is not going to change at all. So they're creating 72 units." (Mary Davis)

Committee member Sarah McNevich asked whether separating the parcels reduced housing production; staff replied the developer's unit count and financing plan remain unchanged. Greg Watson, director of housing and economic development, said staff has discussed potential interest from Parks & Rec, Portland Trails and other local entities for passive recreation uses but concluded marketing the parcel for sale is the appropriate next step.

The committee voted to recommend the amendment to the full City Council. The motion was moved by Councilor Kate Sykes and seconded by Councilor Sarah McNevich; the committee's roll call showed all members present voting yes.

Ending: Staff said any future sale would be handled separately, and if the city sells the Falmouth parcel staff intends to propose transferring proceeds into the housing trust fund at a later council meeting. No council action was taken at the committee meeting; the committee forwarded its recommendation to the City Council for final approval.