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Lewiston council pauses decision on $1.4M guarantee for Colisée sale after heavy scrutiny
Summary
A privately led bid to buy Lewiston’s Colisée for $4.9 million and close with a $3.5M private loan plus a $1.4M seller note prompted a multi‑hour council debate about underwriting, appraisals, city recourse and public risk; after extensive public comment and questions, the council voted to table the guarantee request and asked staff for further materials and legal review.
Mill Town Sports representatives laid out a privately financed plan to acquire the Colisée and asked the City of Lewiston to provide a conditional guarantee to back a seller‑held $1.4 million note so the sale could close. The request touched off one of the night’s most protracted and detailed exchanges.
Nate Bostic, Mill Town Sports president, described a purchase price of $4.9 million, a $3.5 million bridge loan from TNM Investments and a 0% seller note held by the current owner for $1.4 million to be repaid over 10 years. He said Mill Town Sports and the current owner have already invested about $3.9 million in capital improvements and outlined a business plan built around an academy that would sell daytime ice and year‑round shoulder‑season programming, plus junior and amateur hockey tenants and events.
Councilors and members of the public pressed for financial specifics: who is TNM Investments, the structure and term of the proposed bridge loan, whether an independent appraisal supports the $4.9 million purchase price, how short‑term interest costs would be covered, what contractual protections the city would receive (liens, personal guarantees, operational performance clauses), and how the city would limit exposure if a default occurred. At least one councilor noted that significant legal and financial documents were delivered to council members late in the meeting, limiting time for review.
Multiple youth‑hockey advocates told the council the Colisée is an important regional asset and pledged operating commitments (Mid‑Coast Youth Hockey referenced a $250,000 ice‑time commitment). Opposing commenters and some councilors warned of precedent and urged stricter underwriting and more time for review.
Procedural motions: The council initially failed to table the item, then used a motion to reconsider and ultimately voted to table the guarantee request so staff and the applicant can supply missing appraisal and underwriting documentation and provide adequate public notice before a final vote.
Next steps: Administration will coordinate with Mill Town Sports and the private lender to gather detailed appraisals, underwriting materials and a refined draft guarantee with explicit security provisions (documented liens, personal guarantees and operational commitments). Council requested that staff post the newly provided materials publicly and allow sufficient time for review before the next scheduled meeting.
