Mainebiz

May 18,2020

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W W W. M A I N E B I Z . B I Z 13 M AY 1 8 , 2 0 2 0 Hardworking YOUR TEAM IS HARDWORKING, YOU NEED OCCUPATIONAL HEALTH SERVICES THAT WORK JUST AS HARD. Six clinic locations in Maine and a range of customizable services provide individual attention and team success. WE'RE OPENING OUR SEVENTH LOCATION IN ELLSWORTH 2020! workhealthllc.org 1.844.WRKHLTH(1.844.975.4584) After 2 years of planning, a redevelopment project is scrapped in South Portland B y M a u r e e n M i l l i k e n S O U T H P O R T L A N D — After two years of preparation, the plan by Northland Enterprises to develop the former Sisters of Mercy convent on Meetinghouse Hill in South Portland was close to becoming a reality in March. The Portland development company had worked with neighbors and the city since 2018 on development of the 8,600-square-foot, 18-room house on 0.91 acres into a hotel. Northland had also partnered with Migis Hotel Group, which operates seven boutique hotels in Maine and two in Massachusetts, including the Black Point Inn in Scarborough, the Sparhawk in Ogunquit and the Inn at Ocean's Edge in Lincolnville. Much of the past two years was spent trying to get the house, built in the 1860s, designated as historic. When that didn't pan out because of extensive early-20th century renovations, the plan was rejiggered. Rooms were added to make up for the cost that otherwise would have been covered with historic preservation tax credits. The plan was set to go to the South Portland Planning Board at the end of March, with an eye toward the hotel's opening in April 2021. "Then all of this happened," said Josh Benthien, Northland CEO. Benthien had hoped to close on the building, owned by 364 Broadway LLC, soon. But, with the future of the economy, and lodging in particular, uncertain, the bank wasn't sure about financing. The owners had bought the property from the Sisters of Mercy in June 2018. They'd been patient, but Benthien didn't want to keep them on the hook indefinitely. Now the stately house is back on the market, listed by the Real Estate Store, of Scarborough, for $649,000. Right place, right time Northland hadn't developed a hotel before — its properties include the reno- vated Sanford Mill, on Washington Street in Sanford, and Century Plaza in West Bayside, among others. But the big old white house sitting back from Cottage Road on a wide green lawn was enticing. Benthien, who lives nearby, drove by it often. He felt drawn to the old, empty house. Northland hadn't developed any hotels. "Our philosophy is to know what we don't know, and we don't know hotels," he said. So, the company partnered with Migis, which leases and operates boutique hotels. `"We really wanted the right team in place," Benthien said. While Northland would have been able to push the construction schedule out another year or so, they hadn't closed on the property when the pandemic hit. While the lender had been cooperative and proactive, the uncertainty of what will happen with the state's lodging industry was a concern. The listing for 265 Cottage Road went back up in early May. B R I E F P H O T O / R E B E C C A M I L L I K E N 265 Cottage Road 265 Cottage Road in South Portland is back on the in South Portland is back on the market after plans for a boutique hotel by market after plans for a boutique hotel by Northland Northland Enterprises Enterprises were derailed by the COVID-19 pandemic. were derailed by the COVID-19 pandemic.

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