Lewiston council approves $250,000 loan to Milltown Sports for Coliseum amid divided debate

The Lewiston City Council voted 5–2 to approve a $250,000 loan to Milltown Sports and Entertainment LLC to support the company’s planned purchase and operation of the city’s Coliseum.

Interim Director Blaise presented the financing package as gap financing intended to preserve community uses at the Coliseum and to limit the city’s exposure. “This is the down payment, essentially. This is part of the closing,” Director Blaise said, describing a 14‑year, 0% loan to be funded from the city’s economic reserve and supplemented by private and seller financing.

Councilors pressed staff on the loan’s security and underwriting. Councilor Nagy asked whether inspections could trigger acceleration of repayment and sought clarity on the loan’s security instrument; Director Blaise said the collateral is personal property assessed in the packet at roughly $680,000 and that the city would be second lienholder behind the current owner. “We’re the second lienholder,” Blaise said. Councilor Nagy highlighted that the loan had a split vote at the Loan Qualification Committee and asked for the committee’s numeric result; Blaise responded the committee’s vote was 3 in favor, 1 opposed and 1 excused.

Skeptics described the arrangement as thinly secured. Councilor Martel said she viewed the request as “an entirely unsecured $250,000 loan” and questioned whether the equipment offered as collateral would cover losses in default. Councilor Chittum said, “Purely financially, it’s not a good deal for the city,” but added he would support the loan on the grounds that it preserves the city’s access to parking and community uses at the Coliseum.

Staff said the loan is intended as gap financing that keeps the city at the table as a community partner and preserves ongoing uses such as high‑school hockey and school parking. Director Blaise told the council the package combines private investment and a seller note; he said T & M Investments would provide a larger loan and waive a formal appraisal in support of the transaction.

Councilors also requested further legal editing of documents and clarification of funding sources referenced in attachments: a job‑creation attachment incorrectly named federal CDBG language that staff agreed to correct. Several councilors asked that any final approvals be contingent on updated and finalized legal documents.

Before the vote, the clerk polled the wards and the motion passed to adopt the loan by a vote of 5 to 2. The council also earlier voted to postpone indefinitely a separate financial‑guarantee order tied to the Coliseum acquisition on a 6‑1 vote.

The council directed staff to finalize legal documents and noted that if the private partners proceed without the city the city could lose preferential access to parking and programming at the facility. Staff said they would return final signed documents and that legal counsel had reviewed the package but additional edits were expected prior to closing.