Sen. Joe Baldacci (D-Penobscot) wants the state to either purchase or use eminent domain to seize control of the Bangor Mall so it can be transformed into subsidized “affordable” housing units, and submitted a resolution to that effect which was met with a range of skepticism at a public hearing on Tuesday.

“At this point the Bangor Mall is on its way to economic self-destruction. Ten years ago it was assessed at over $100 million. Today it’s $13 million,” said Sen. Baldacci.

“The very large Bangor Mall area has become not only an eyesore, but is deteriorating quickly. Our once thriving mall area was once a key part of that economic engine, but now it has fallen (in)to serious disrepair, almost intentional economic destruction of a valuable important asset of the Bangor region, as well as all of Eastern Maine,” he added.

Baldacci argued that zoning ordinances have already been adapted to allow for housing in Bangor’s east side, where the mall is located, and cited willingness from the Bangor Housing Authority to work on converting the mall into “affordable workforce housing.”

He claimed that the mall would be an ideal location for housing because it is near I-95, as well as businesses and medical services.

Erik Jorgensen testified against the bill on behalf of the Maine State Housing Authority, objecting to the role proposed for the Authority in the bill, claiming that it is not equipped to manage and assess the property for potential housing development. He also warned that retail property is notoriously difficult to convert into housing.

“We do know that retail sites are often really difficult to retrofit for most other purposes, and while Maine Housing apparently does have eminent domain authority, we’ve never exercised that, and don’t think it’s a very good way to do business.” said Jorgensen.

He argued that Baldacci is approaching the problem in a backward manner and suggested that support for the project should come from the local community first rather than the Housing Authority.

“Providing funds to purchase a distressed mall, possibly over the objections of its owner, before having a detailed plan in place, (it) sounds like that’s in reverse,” said Jorgensen.

The bill would allow for the businesses that are already there to remain in operation, while developing the rest into housing units.

Rep. Sean Faircloth (D-Bangor) tentatively testified in favor of Baldacci’s bill, expressing support for the idea of purchasing the mall but acknowledging that the bill, as written, needs more work and should possibly be considered later on in the next legislative session.

Though no one else appeared to testify on the bill, the City of Bangor submitted written testimony expressing support for a potential redevelopment of the mall, but opposing the lack of local involvement from the city.

“We are concerned that as currently written LD 901, would direct Maine State Housing Authority to negotiate the purchase of this site and to establish a separate housing authority, which would have limited local representation and appears to limit redevelopment options,” said the city.

The city was also concerned that the bill would limit the potential development of the mall to affordable housing.

Nevertheless, they requested that the bill be passed, though only after being amended to address their concerns.

The bill, LD 901, drew support from three Democratic co-sponsors, all representing Bangor.

As written, the bill instructs the Housing Authority to negotiate for the purchase of the mall, or to force a sale using eminent domain if no sale is agreed upon within a year, essentially forcing the owners to agree to terms or risk losing their property at a potentially lower price.

Within six months after the acquisition, the Housing Authority would be required to submit a report estimating the cost of converting the mall into affordable housing.

The bill also pushes for the establishment of a new agency, the Bangor Mall Housing Authority, specifically to handle the newly acquired state property. However, since it is a resolution rather than standard legislation, it does not directly establish the authority but instead calls for other legislation to establish it.

The new housing authority would retain the current mall businesses while developing the remaining space into affordable housing exclusively for people making between two and four times the federal poverty level ($32,150 per annum).

As written, Baldacci’s bill would appropriate $25 million in taxpayer funds to purchase the mall and make repairs on the building and surrounding infrastructure. Baldacci suggested during his testimony that the funding could be reduced to only $18 million to reflect the reduced market value of the mall.

Notably, that cost does not include what is likely to be an extremely high cost of converting the building into livable housing, rather just the purchase and basic repairs.