Local groups explore buying vacant downtown building for workforce housing; CDC role discussed

A group including representatives from local nonprofit employers described interest in acquiring a large, century‑old building in town to create workforce housing and related shared space, but said the proposal faces several practical and legal complications.

Committee members outlined key constraints: an existing tenant (the post office) and its separate utilities and lease structure; potential asbestos and lead‑paint remediation; sprinkler and building‑code upgrades; parking limits in summer months; and tax‑treatment considerations if a nonprofit owns mixed-use property. One member said the building had been on and off the market and that an informal ‘‘as‑is’’ price was floated but might rise if it is formally listed.

Multiple members said the Island Housing Trust and other regional partners had signaled some willingness to explore creative approaches. The committee also noted prior conversations about establishing a revolving loan or bridge‑financing mechanism and asked whether the CDC could act as a fiscal vehicle or connector for private donors and grant opportunities. Participants stressed the need for clear bookkeeping, staff capacity and legally aligned mission statements before the CDC could take on complex real‑estate transactions.

Members recommended further, confidential due diligence before public solicitation and suggested the town manager and CDC work with prospective buyers and property owners to clarify tax, insurance and tenant questions before any purchase attempt proceeds.

Next steps: continue due diligence, explore potential partnerships with Island Housing Trust and others, and evaluate whether CDC capacity or a new nonprofit vehicle is required to execute a purchase.