Staff Writer

Despite more than half a dozen Kennebunk residents expressing support of the sale of Park Street School to Avesta Housing, selectmen voted to accept a citizens’ petition Dec. 9 to rescind the sale of the former school and maintain it for municipal use and scheduled a special town meeting for Saturday, Jan. 31. 

The 532 signatures on the petition created to “implement the voter preference expressed in past surveys, as well as the June 2006 referendum vote to retain ownership of the facility for municipal and community uses,” were certified Nov. 19 by Kennebunk Registrar of Voters Merton Brown.

The proposed article asks residents, “if the town should nullify any existing contracts or agreements for sale or transfer of the property and appropriate $55,000 and a $1.4 million bond for operating costs of the building and design, renovation and equipping the facility for municipal uses.” 

Avesta Housing Director of Development Deb Keller said the proposed project is to renovate the building to create 30 apartments for low-income senior housing, while maintaining the historic integrity of the structure. Keller estimated Avesta Housing will invest roughly $8 million to bring the building up to standards and create nice housing.

“With the scope of work that needs to be done, you’re not going to get a lot for $1 million,” Keller said. “The annual operating costs are high also. We’ve estimated $180,000 roughly for an annual operating budget.”

The $1.4 million bond proposed in the petition will finance a renovation of the building to make it functional, petition writer John Costin said. He said the bond would mean an increase of $17 in taxes for a median home of $285,000. 

“For some folks that is a lot,” Costin said. “From our perspective, keeping the building is a wise investment in town growth.”

In a letter to Town Manager Barry Tibbetts dated Nov. 18, town attorney William Dale addressed the overall legality of the petition, including whether voters may initiate bond order warrant articles. He wrote the proposed expenditures may exceed the “property tax levy limit” for the current budget and the petition fails to identify where the $55,000 for operating costs will come from.

Dale wrote he is concerned about the petition leading to the termination of the written agreement with Avesta Housing, as well as the timing of a special town meeting for a residents’ vote, which would have to occur within 60 days of accepting the petition. 

Dale said in the letter there is no rule prohibiting this type of petition, and while the amount exceeds the limit, the amount falls under exceptions outlined in the town’s charter.

As far as operating costs, Dale said he assumes the petition infers the money will come from the surplus account. 

Since selectmen were aware of the circulating petition, they disclosed the information to Avesta Housing and added a clause in the written agreement to allow the town to rescind the sale if voters approve the petition article, therefore Dale said there is nothing illegal about the petition or the termination of the sales agreement. 

If termination of the agreement occurs, Kennebunk will have to reimburse Avesta Housing for all expenses from the time the building was handed over when  selectmen voted to enter negotiations with Avesta Housing Oct. 14. Tibbetts said to date, Avesta Housing has invested $35,000 in maintenance of the building and anticipates a total expenditure of $60,000 by the time the vote takes place at the end of January. 

Keller said the current expenses have funded application fees, a market study and architectural fees as well as general maintenance and heating costs for the building. 

“The petition raises a host of legal issues; however, on balance, I believe all of the legal issues can be resolved and the board of selectmen will be obligated to put the article before the voters at a special town meeting sometime this winter,” Dale said. 

During Tuesday’s meeting, Budget Board Chairman David Spofford said while there is sentimental value to the old school building, the current economic times do not allow the opportunity to afford holding onto the building. 

“We’re coming into budget season,” Spofford said. “The projected figures are scary and the revenue shortfalls in town are staggering. The proposed $1.4 million is only a Band Aid and it’s not going to bring the building up to par.”

With the town facing a difficult budget season, Spofford said tax revenue from the sale of building would fund at least one department head. 

Kennebunk resident Dana Crowley said the issue at this point is whether to sell the building, but whether the petition should go to voters.

“The economy is not just bad in Kennebunk, it’s bad all over, and if we take that position nothing would ever go forward. This started with the voters and it should go back to the voters,” Crowley said. 

While Keller said she is not surprised the petition was accepted, but thinks the proposal for senior housing is a great use of the school property. She said Avesta Housing has a “great relationship” with the town as a result of the Cousens School project completed this fall. 

“We are watching this closely, and we stand behind our proposal,” Keller said. “We look forward to working with the town again and the prospect of senior housing for the area.”