Savings Bank of Maine took ownership of Roger Bintliff’s Edgecomb Development property on Davis Island for $7.5 million at a public auction held at the closed resort restaurant on Dec. 28. Several people showed up, but made no bids.
The some 25 people in the room, among them town selectmen and residents, came to the auction to see what would happen.
Pierce Atwood attorney Jacob Manheimer, who was representing the bank, opened up the bidding process seeking $7.6 million. Hearing no bids, Manheimer sold the property to the bank.
One potential bidder, E. Davies Allan of marine contracting and engineering firm Chesterfield Associates of Westport Island, said he would have put a $5 million bid on the entire project, but could not go any higher. He said Roger Bintliff of Edgecomb Development, LLC owes his company money for the contracting work in laying septic and freshwater pipeline across the Sheepscot River. The outstanding balance of the $1 million job remained at $50,000 for three years, but in the last few months his company has settled the account, Allan said.
Addressing Manheimer, Allan wanted to know how much was in the Tax Increment Financing (TIF) district owed in taxes to the town. As described in the manual created by the Maine Dept. of Economic and Community Development, TIF is a tool municipalities can use to fund local projects by using all or a portion of new property taxes from a capital investment.
Towns use future increased tax revenue to repay loans used to finance a project. This method of financing is a tool used by towns to generate development growth in certain areas. Manheimer could not elaborate on the amount of tax funding in the TIF district.
Priority Group, LLC, the court-appointed receiver, will manage the property and then sell it. James Howard, Priority Group president and CEO, said they would likely sell the property in individual parcels, since any potential buyers would have showed up at Monday’s auction. He said they would also offer up the property in its entirety.
Howard said the resort and grounds formerly owned by Edgecomb Development include nine condominium units, an inn, a restaurant, commercial property including the Chef’s Kitchen, a lobster shack and 16 acres of undeveloped land, the pier, and pool house.
Some of the property is included in the TIF district, while certain parcels are not, including a number of cabins referred to by town selectmen as the “Jim Hall properties.” The sale also included the development rights to 11 empty lots on the resort project.
Individual owners of condominium units and cottages on the property will continue to have the access rights of common property afforded to them in their purchases, Howard said. He said the units include the land directly beneath them and owners can use the surrounding property as stipulated in their deeds and organized by the owner-operated condominium association.
Nancy Carleton, who works as a realtor for The Carleton Group, owns one of the condominium units. She said she was the original real estate agent who sold the cottages and other condos to individual buyers.
“Hopefully the units will sell,” she said. “And we get this place back to life.”
Julie Demeester said she owns one of the cottages on the property. Having commented it is a good project, Demeester agreed with Carleton and also noted the downturn in the economy as the reason for the property’s demise. Demeester said she is making mortgage payments on the cottage she intends to retire to in seven years. She said she is happy with having purchased the property and believes it was a worthwhile investment.
“It’s beautiful,” she said, confident the economy is going to recover and units are going to be sold.
Remarking on the pleasing riverfront aesthetics, Demeester also said she thought the other owners remain optimistic. She indicated when the economy does pick up, other people might want to retire in Edgecomb and the property on Davis Island will be a desired location for potential buyers down the road.
Marcie Patton of Connecticut said she is a long-time observer of Davis Island. She recalled times in her childhood when she spent summers along the banks of the river and when the Muddy Rudder Restaurant was in operation.
She said she was not happy with the way the riverfront had been altered, much of it she said was irreversible, and is also dissatisfied with Bintliff’s business practices.
“I don’t know where Roger Bintliff is,” she said. “Probably sunning himself on some island.”
Had she had enough money to purchase the property, Patton said, “I’d take everything down and replant the trees.” She added the current property owners, of course, would first have to be willing to sell. Patton also said she liked the restaurant and hoped new business would bring it back to life.
Selectmen said they anticipate tax revenue owed to the town would be paid. According to selectmen chair John Johnson, the individual condominium owners have paid their taxes. He said about $70,000 from the inn, restaurants and other segments of the property, are still due to the town.
“We think this is a good step; a positive move forward,” Johnson said, remarking on the sale to the bank. “This is important for the town to succeed.”