UNION – Town officials have placed on the Nov. 7 municipal ballot a group of articles they hope will give voters the opportunity to either save or sell the town-owned Thompson Community Center property.

Voters will also decide on a RSU 40 ballot request for approval to issue up to $81 million in bonds for capital improvement projects. The improvements may include, but are not limited to listed improvements to all seven schools for: heating and ventilation, safety and security, structural repairs and water systems. Included in the list of specific improvements are replacement of Medomak Valley High School septic system, a 15,000 square foot addition to the high school and interior renovations and a 12,000 square foot addition to the Miller School and interior renovations.

Municipal Ballot

A short informational video on the home page of the Town of Union website explains the rationale for Articles 2-5. Voters would need to approve these articles to create a pathway for future renovation of the Thompson Community Center and redevelopment of the former Union School into senior housing.

Article 2 on the town ballot asks voters to authorize town officials to enter into an agreement with a developer for the purpose of building senior housing and for continued community use of the property. Article 3 seeks approval of a Tax Incentive Finance District for the Thompson Center property. Article 4 seeks approval of land use changes to create a Community Center District that will allow new zoning needed for the senior housing and continued public use of the Community Center. Article 5 requests authorization to use previously raised funds to repair the brick exterior of the Community Center, after a development agreement for senior housing is reached.

Article 6 gives voters the option to authorize the sale of the entire town-owned property, including buildings.

Plan for senior housing development, tax incentive financing for Community Center renovations

The informational video explains the plan for attracting a developer to convert the Union School into senior housing in order to produce new tax revenue. The tax revenue would be used to support the development of the senior housing and to provide funds for the Thompson Center renovation. Matthew Eddy Executive Director of Midcoast Council of Governments presents the video overview of the current plan. Eddy was hired by the town to work with the Thompson Community Center Working Group, which was created by the Select Board.

Eddy spoke to developers as part of his work. He found there is little to no market for retail or commercial office space in the Community Center building. There is a housing market for seniors of all incomes, whether the options are rental, condo or cooperative ownership, according to his report.

The key to attracting developers is a predictable process, according to Eddy. If approved, Articles 2-5 would provide developers the predictability they need in order to invest in the former Union School building, he explained.

The estimate for redeveloping the Union School into senior housing with 15 to 23 units is $9.3 million. A developer would seek federal and state financing to build the senior housing. Also estimated is a projection of $138,750 annually in new tax revenue for the town once the senior housing is completed and assessed for property tax value. All or a portion of the tax revenue would be split between a developer of the senior housing and the Community Center renovation.

Costs to renovate Thompson Community Center

Reports produced since 2018 on the Thompson Community Center are available on the town website, including a 2023 Cost Estimation for renovations. Copies of most of the reports can also to be picked up at the town office.

The Community Center, commonly referred to as the ‘brick building’ was built in 1951. It is attached to the former Union School, referred to as the ‘yellow building,’ built in 1923. Reports list needed repairs to the Community Building as stabilizing brick work, replacing windows and doors, new heating and ventilation systems, renovation of two unused bathrooms, stabilization of exterior walls and foundation work, well and septic system and roof replacement.

The 2023 report estimates a cost of $3.8 million for major renovations, not including roof replacement, well and septic and insulation and vapor barriers at exterior walls. Installing an elevator in the building is estimated at an additional $406,433.

Oct. 18 Public Hearing on Community Center property

Questions from the community drew out more information about the potential tax revenues from redevelopment of the Union School into senior housing that could generate funds for renovation of the Community Center.

The tax revenues are not generated until the redevelopment is completed, and the property is assessed for tax purposes. The total tax revenues could range from $70,000 to $140,000.

It was made clear by Select Board Chair Adam Fuller that the tax revenue generated by the TIF would only be a portion of what is needed to renovate the Community Center. The tax revenue could be used also to raise matching grants. He described the timeline for the renovations as five-to-10 year project.

Fuller indicated his opinion is the property is worth more than the buildings, and reminded those present that the original idea was to tear down the buildings and sell the property. No other Board members spoke to disagree with this opinion.

The point of the Nov. 7 vote is that the Select Board has listened to community members, Fuller said.

The main focus as a board and as a working group was trying to provide the community a pathway towards keeping the community center, he explained, adding that a lot of time, work and volunteer hours have gone into the proposal..  He described voting for Articles 2-5, or just for Article 6, as “vastly better options” for the town, than where it is today, or has been for the past five years.