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V O L . X X X I N O. X X I S E P T E M B E R 2 2 , 2 0 2 5 22 A U G U S TA / WAT E R V I L L E / C E N T R A L M A I N E Up above Water Street Most of the city's homes sit well above the waterfront, along hilly, tree- lined neighborhoods of remarkably handsome historic homes. Hallowell is a treasure trove of preserved 18th and 19th century architecture; many of its structures are on the National Register of Historic Places. ere's a homestead museum, tucked into the popular 200-acre Vaughan Woods park, which has three miles of walking trails, stone bridges and waterfalls. e Gothic-style Hubbard Free Library, the oldest in the state, was built in 1880 to resemble an English church and is a commanding presence on Second Street, just one block up from the retail district. It's a popular destina- tion in this very walkable city. Yet Hallowell also faces some of the same challenges seen throughout Maine: the need for housing, particularly rental housing. And the water supply is tainted by contamination from PFAS. Housing challenges Hallowell needs more housing. "ere's a scarcity, particularly for rent- als," says Katie McAllister, a local real estate broker. "It's becoming more of a buyers' market here, and we see one to two new listings every week. But we need more rentals." Matt Morrill is doing his part. His Mastway Development, based in town, has been building and renovating in Hallowell for years and just moved tenants into Morrill's latest housing project, a 17-unit affordable apartment building on Beech Street in Stevens Commons, up the Winthrop Street hill from the downtown. Tree Tops is for households earning up to 80% of the area median income. Rents start at $1,311 for the 550-square- foot one-bedrooms, all utilities included. ere are two larger units, topping out at 970 square feet. Morrill also has under construction, with Augusta-based LaJoie Brothers, a 20-unit condo neighborhood, Ledge Point, and he's continuing to add to his 15-lot single-family home subdivision, Hallowell Overlook. He purchased the 63-acre Stevens Commons property in 2016 for $215,000 and he's invested $20 million more to make the complex what it is today. Once home to a girls' school and later state offices, the site was abandoned by 2015. Morrill tore down two buildings, renovated seven more, and three of the buildings are now dormitories for the Univ. of Maine Augusta. He'll start building a fourth dorm next spring — 62 rooms plus a cafeteria. e property has a central park-like green which hosts a weekly farmers' market as well as other local events. Nellie's Kitchen restaurant is also onsite, and the property is a popular destination for locals. Mastway has recently built afford- able housing in Augusta and has a 32-unit apartment building under- way in Gardiner, but Morrill says it's increasingly difficult to cover devel- opment costs, even with subsidies. "Building something that's affordable is really hard to do now." Water contamination Despite its abundant charms, Hallowell is not immune to challenges. Like many towns in Maine, it's wrestling with PFAS contamination to the drinking water, which was first detected in 2022. e new treatment plant needed to address the problem will cost $10 million. Zach Lovely, superintendent of the Hallowell Water District, says the city's water comes from an aquifer across the Kennebec in Chelsea, which is par- tially replenished with river water and that's contaminated with PFAS from upstream sources, largely municipal sludge which was once a common fer- tilizer for agriculture. "It's not just Hallowell, the chemi- cals are everywhere, and have been for 80 years," Lovely says. e water district has trialed four different treatment options. "We started early in 2024. It's cost a lot of money and a lot of time, but we want to do it right," Lovely says. "Augusta will be ahead of us on this, because they already have a treat- ment plant that they can add onto. We have to build new." Engineers from Topsham-based Wright & Pierce are handling design for a water-treatment system. An EPA grant for $8.2 million will cover much of the $10 million cost. e city hopes to borrow the rest, but Lovely says project costs could be reflected in residents' rates. Two- thirds of Hallowell households use city water. ose on private wells might also see contamination, and testing runs as high as $475. Construction is targeted for 2027, two years ahead of the new EPA stan- dards going into effect. With so many other towns requiring new or updated treatment facilities, lining up contrac- tors is not easy. Striking a balance Beyond the PFAS remediation and need for more housing, the biggest challenge newly hired city manager Ross McLellan sees is balancing city services with property taxes. e median household income for Hallowell was $58,811 in 2023, accord- ing to U.S. Census figures; the median age was 49.8. e population is a mix of older residents and families. Residents were outraged over a tax hike last year, which increased the mil rate by close to 20%. For FY 2026, City Council cut the municipal budget by 15%, to $3.2 million, and set a mil rate of $18.80. Hallowell has just four police officers and its own public works department; which is a bit uncom- mon for such a small city. But McLellan says local control saves money over contracting for services and dramatically improves response times on projects. "e city does a lot with a small bud- get and small staff," McLellan says. Tina Fischer, Mainebiz staff writer, can be reached at tfischer @ mainebiz.biz » C O N T I N U E D F RO M P R E V I O U S PA G E P H O T O / T I M G R E E N WAY F O C U S There's a scarcity, particularly for rentals. It's becoming more of a buyers' market here, and we see one to two new listings every week. But we need more rentals. — Katie McAllister real estate broker Water Street includes a mix of shops, restaurants and other small businesses.

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