Penquis outlines plan for 37‑unit assisted‑living and supportive housing project in Millinocket

Penquis representatives presented a plan to the Millinocket Town Council on June 11 for a 37‑unit development combining assisted living and supportive housing, with an estimated total project cost of about $8 million. The project would include roughly 20 assisted‑living units and 17 supportive housing units, Penquis said, and is sited near the Spring Street School parcel.

"We expect about $8 million total," said Larry Rogers, Penquis's development director, describing the financing package that the developer is assembling. Rogers and Peter Malia, Penquis's operations manager, told the council the financing package includes roughly $7–7.5 million in low‑income housing tax credits (to be sold to investors), about $900,000 in a grant originally intended for work at the Spring Street School, and an efficiency grant of roughly $300,000.

The developers said syndicators can be reluctant to buy credits when a project includes an assisted‑living component because assisted‑living revenue streams are tied in part to state funding. "Syndicators are a little uncomfortable because in their mind it's not a guaranteed revenue," Rogers said, noting Penquis operates assisted‑living facilities elsewhere and that a local financial institution is reviewing the offering to buy most of the credits.

On schedule, Penquis said 90% design and pricing should be completed this month and the aim is to reach 100% pricing by the end of July. If financing and permitting proceed, the team hopes to break ground as early as September and finish construction in about 13 months, allowing lease‑up toward the end of next year. "BMAN says they can do the project in 13 months start to finish," Rogers said.

The presentation also flagged a separate but related problem: structural issues discovered while gutting the Spring Street School building that would raise rehabilitation costs. Engineers proposed a fix that Penquis described as materially higher than an earlier $900,000 allowance; the developer said that gap will need to be addressed before reuse of the school can proceed.

The new building will include community amenities, the presenters said: a commercial kitchen to support the local Meals on Wheels program, a community dining room, refrigeration and a full basement. The developers told councilors many current assisted‑living tenants at the Sterns building are expected to relocate into the new facility while a small number of additional units will be available for lease.

Councilors and residents asked about tenant counts, the address (identified in the meeting as Milford Street Extension/Milford Place), and whether the developer had completed feasibility work on rehabbing the older Sterns building. Penquis representatives said Sterns is owned by a different entity and that Penquis's role is to build and operate the new facility; decisions about the existing property are up to its owner.

Councilor Raymond praised the project as filling a local need for assisted living. "I just want to commend him for this job that you're doing here," Raymond said, urging a timely permitting process.

Next steps identified in the presentation: finalize 100% design and pricing, secure tax‑credit purchasers (or a syndicator for the remaining credits), and complete closing. No formal council vote was taken on the project at the June 11 meeting.

Provenance: Penquis presentation and Q&A (transcript SEG 161–SEG 516).