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A South Bristol businessman’s energy-efficient model home on Rutherford Island will go to auction at 10 a.m., Monday, Dec. 30. (J.W. Oliver photo) |
By J.W. Oliver
A South Bristol businessman’s energy-efficient model home on Rutherford Island will go to auction at 10 a.m., Monday, Dec. 30.
Richard Munson and Par/Pac Inc. built the house on Coveside Road in 2006-2007 to demonstrate the efficiency of the Par/Pac building system.
The building uses high-density, cellulose-fiber insulation and passive-solar construction to reduce heating costs. The 3,600-square-foot, three-bedroom structure burns less than 200 gallons of propane a year, according to Munson.
Munson owns Par/Pac Inc., which licenses and trains builders to use the patented system and sells some of the necessary materials.
The First N.A. has a mortgage on the property and will hold the auction as part of foreclosure proceedings.
The Damariscotta-based bank financed the construction of the building with a $400,000 loan, according to a notice from the bank to Munson. Par/Pac Inc. has invested another $200,000 in improvements to the property, according to Munson.
A year after construction, Par/Pac Inc. placed the building on the market for $749,000. The building is now for sale for $439,000, according to Munson.
Richard and Cheryl Munson also own and operate The Christmas Cove Inn, a bed-and-breakfast on an adjoining property. The Par/Pac building serves as the annex to the inn, and guests will often book the entire annex for special events, Richard Munson said.
The inn is also for sale, but is a separate property and is not part of the auction.
Richard Munson, with the help of an attorney, hopes to secure a court order to delay the auction of the annex, he said in a recent interview at the inn. The loss of the annex would hurt the bed-and-breakfast business and could cause more financial problems for the Munsons.
Munson, at 77, continues to run the bed-and-breakfast and pursue other business ventures, despite significant health issues. He has scoliosis, a sideways curvature of the spine, and wears a back brace. He has had four surgeries on his spine and will undergo a fifth in the spring.
The bed-and-breakfast turns a profit, Munson said. “But it won’t be profitable, now that we’re losing the annex,” he said.
Munson said there is interest in the properties, but he fears the inn and the annex will only sell as a package, and the auction could ruin the Munsons’ chances for a sale.
If the annex sells at auction for less than the balance of the mortgage, the bank could place a lien against the bed-and-breakfast for the difference, Munson said.
The bank already holds a lien against the bed-and-breakfast for the outstanding balance of a credit line for Green Comfort Safe Inc., another of Munson’s business ventures.
The First N.A. President Daniel Daigneault did not respond to an interview request.
The auction will take place at the property. The bank requires a $25,000 deposit from anyone who wants to bid on the property, with the balance of the sale amount due within 30 days.
