The grudge war against the city of Lewiston is finally over.
The city has paid Norm Rousseau enough money – more than enough, actually – for his interest in the Pilsbury Block building.
The city can finally move forward with renovation of the public library, annexing the vacant building to create a downtown cultural learning center.
For years, the city and Rousseau have disputed whose right to own or lease the building supersedes the other. Rousseau charged the city with interfering with applications for federal loans. The city argued that Pilsbury Associates, in permitting Rousseau to sign a 30-year lease with options for 60 additional years, had transferred ownership in violation of the city’s right of first refusal.
Rousseau has always been willing to let go of the property for a price, arguing his lease was worth – at a minimum – $578,000. The city wasn’t buying, insisting it would only pay fair market value for the property. The property that had been heavily damaged by fire a decade ago, had no heat or electrical service on the second and third floors, carried only $100,000 in insurance and was later appraised at just $84,000.
The city eventually acted to take the property by eminent domain, paid Rousseau $95,000 and Pilsbury Associates $50,000.
Rousseau has never been satisfied with the taking of the property or the price paid. But whether this businessman appreciates it, the city did not bilk him. It can hardly be criticized for fiscal responsibility to taxpayers.
In suing the city, Rousseau argued that his claim was made to teach Lewiston a lesson on treating people fairly. Following last week’s court decision ruling in favor of the city, he saw himself as the little guy who, he said, stood up to “people with deeper pockets.”
The people with deeper pockets he’s referring to would be, of course, taxpayers.
No deep pockets there.
Rousseau’s insistence on collecting a windfall on this property unnecessarily cost taxpayers attorneys fees and court costs. It also delayed the start of renovation at the library, which is otherwise ready to proceed.
If this was a lesson in fairness, the city was the teacher. Rousseau, the student.
Essential B&B?
The federal government has guaranteed a $1.3 million loan for the purchase of the Cleftstone Manor Inn in Bar Harbor, a stately Victorian mansion near Acadia National Park.
If the new owners default on their loan, this guarantee makes taxpayers responsible for up to 90 percent of the loss.
As shocking as public backing for purchase of a private venture may sound, it is not unusual. Even for hotels.
In 2001, the Bangor Rodeway Inn near the city’s airport received a $1 million loan guarantee from the same U.S. Department of Agriculture.
This seems an odd time to guarantee loans, given shrinking federal dollars and exceptionally low interest rates available through private lenders.
The mission of USDA Rural Development is to improve the economy and quality of life of all rural America by supporting “essential public facilities and services such as water and sewer systems, housing, health clinics, emergency facilities and electricity and telephone service.”
While nice, a $200 a night Victorian bed and breakfast that offers four star dining is not essential to rural America and taxpayers should share no risk on this deal.
jmeyer@sunjournal.com
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