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Council approves lease reassignment and sale of 110 Hildreth Street to Maine Recycling after questions about deposit and lease rate
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Summary
The council approved a lease assignment and the sale of city-owned 110 Hildreth Street to Maine Recycling. Councilors pressed staff on earnest-money protections and the lease rate; the sale passed 8–1 and the lease assignment passed unanimously by roll call.
The Bangor City Council on Sept. 8 approved two related orders authorizing (1) the assignment of an existing lease at 110 Hildreth Street to Maine Recycling Corporation and (2) the sale of the city-owned property to Maine Recycling for $2,091,600.
Councilor Fournier moved the lease-assignment order (25‑268), which authorizes the city manager to reassign the current lease between the city and JSI Store Fixtures to Maine Recycling. City staff, represented by Regita Hernandez Smith, told the council that Maine Recycling intends to purchase the building and that changing the lease rate mid-transaction could jeopardize the sale. Staff said they can negotiate earnest-money or deposit terms with the buyer through the city’s broker (Epstein Properties) to provide additional security.
Councilor Mallard raised concern that the current lease rate is below market and that a favorable long-term lease through 2027 could advantage the tenant if the sale fails; Mallard asked whether an earnest-money deposit had been secured. Staff replied there was not yet a deposit but said earnest money could be requested and that the buyer had previously offered $1,000,001 and negotiated to about $2,000,000 in preliminary discussions.
The lease-assignment order (25‑268) passed by roll call with all nine councilors voting yes. The subsequent sale order (25‑269), authorizing sale of 110 Hildreth Street to Maine Recycling for $2,091,600, carried on an 8–1 roll-call vote; Councilor Mallard cast the lone no vote. The sale is contingent on closing within 100 days of the order’s execution; if the sale does not complete within 100 days the current lease will not be eligible for renewal at the end of its term.
Councilors instructed staff to work with the city’s broker on sale terms; staff indicated they would consider earnest-money requirements to increase assurance the sale will close. The council did not amend the sale price or the 100‑day contingency at the Sept. 8 meeting.
