A legislative committee on Tuesday will discuss in a public hearing whether the state of Maine should buy the Bangor Mall or seize it by eminent domain.
The bill, proposed by Sen. Joe Baldacci, directs the state housing authority to buy the dilapidated Bangor Mall, or seize it by eminent domain. If passed, the bill would turn the property into affordable housing.
The mall would be redeveloped into 37 affordable housing units, a mixture of one-, two- and three-bedroom apartments, according to the bill.
The bill is the latest in a series of drastic steps officials in Bangor and the state have taken to try to force mall ownership to take care of the property. Two lawsuits from the city of Bangor allege Namdar Realty Group has failed to fix a broken sewer pipe, a leaking roof, large potholes and the dilapidated sign. Those are still pending in Penobscot County Superior Court.
The bill allocates $20 million to buy the land and buildings. It also allocates $5 million for one-time infrastructure improvements.
The bill directs MaineHousing to negotiate with Namdar to buy the mall for a reasonable price. Namdar bought the mall for $12.6 million in 2019, a little more than half the city-assessed value of $24.6 million. As of April 2024, the property was assessed at $13.2 million, meaning it lost $10 million in value in five years.
If a purchase can’t be worked out in the year after the bill passes, the state is directed to seize the mall through eminent domain. The process allows the government to take property and pay the owner for moving and other expenses.
Once the state takes ownership of the mall, MaineHousing, a state agency that helps provide affordable housing, has six months to submit proposed legislation to create the Bangor Mall Housing Authority and an outline of the costs of turning the property into affordable housing, according to the bill.
Commercial tenants at the mall will have their leases continued at market rate, according to the bill.
The Bangor City Council made zoning changes in 2022 to allow housing, hotels, indoor recreational businesses, light industrial development and reduced parking requirements at the location.
The hearing is one of six scheduled before the Committee on Housing and Economic Development at 1 p.m. Tuesday. A live stream can be viewed through the Legislature’s website.
