Staff Writer

It’s no secret Kennebunkport Historical Society is having financial problems, according to President Betsy Ames-Fitzgerald.

But a debate has erupted over a recommendation by the society’s trustees to sell what some describe as its crown jewel: the Nott House, located in the middle of one of the state’s busiest tourist destinations.

Members of the society are concerned its endowment, which has not recovered from the recession, and the inability to raise money, make it difficult to operate and maintain the 220-year old former residence.

Society board members met July 14 to hear two new finance reports, one with a recommendation to sell the Nott House and one that urges members to keep all properties by finding new ways to increase revenue.

The society owns four buildings, the Pasco Center, Town House School, Benson’s Blacksmith Shop and the Nott House. The society also maintains a collection of books, paintings, costumes and furniture dating to the 1800s.

Ames-Fitzgerald wrote the reports with five-year forecasts supported by research and financial documentation: one with the Nott House and one without. They will be used as the basis for a strategic planning process that has not yet begun.

“The strategic plan will look at all aspects of the society’s operations, buildings, collections, exhibitions, programs, education and outreach, governance and management,” Ames-Fitzgerald wrote in response to e-mailed questions. “The plan will chart the course for the society for the next five years.”

The financial presentations came two weeks after board member and former board president Larry Soule sent more than 300 society members copies of two other reports, one organized by himself without authorization from the board and the second submitted in March by Jeff McCulloh, hired by the board for $1 per year to be an interim strategic consultant.

Soule, who volunteers as a tour guide at the house, said the back portion of the  house was built in the 1790s by the richest family in town, the Perkins. In 1853, Charles Perkins married Ceila Nott, from one of the poorest families in town.

Perkins built the front Greek-style portion of the house as a wedding gift for his bride.

Eventually the Perkins family died out after a series of tragedies, including the early deaths of both Perkins children. The  32 diaries of daily entries from former occupants provide a rich history of life in the Nott House and its environs.

The house was given to the historical society in 1982 by then-president and Nott family member, Elizabeth Nott.

Ames-Fitzgerald said she objected to elements of both Soule’s and McCulloh’s reports. She said a reference in McCulloh’s report to selling the Town House School is out of date and the society is not considering taking that step.

She described Soule as a “rogue board member” who was not authorized to write any such report.

Ames-Fitzgerald said the two new reports will be released to members of the society and the public in late September after the strategic planning study concludes.

Executive Director Susan Edwards said a group of board members and members of the public will participate in the strategic study, along with herself and Ames-Fitzgerald.

The board voted in April to recommend  to society members the house be sold. Historical society members would vote on that recommendation during the annual meeting Oct. 14. However, Ames-Fitzgerald said board members may do some “re-thinking” after the strategic report is completed.

“If we can’t afford to keep (the Nott House) open, we realistically can’t keep it,” said Lynn Johnson, a board member of the society who also volunteers as a tour guide at the house.

Soule and Finn MacDonald, another historical society board member, organized the report authored by Arlene Schwind, curator of the Victoria Mansion in Portland, and Laura Sprague, consulting curator of the Tate House in Portland to find new ways to bring more revenue into the society.

McCulloh’s report, completed in March, was the first report to show the society could face critical financial conditions.

“At the present estimated rate of a $40,000 (annual) deficit the (society) will be “bankrupt” within a decade. However, functionally, it will be beyond saving within two-three years in my opinion. We may have already gone beyond the tipping point,” McCulloh’s report said.

Ames-Fitzgerald wrote that some of his figures are out of date.

According to McCulloh’s report, the society endowment was $567,000 as of January 2010. Annual membership, fundraisers and other sources of income have raised approximately $170,000 a year, except for last year when $110,000 was raised due to the economic downturn, according to McCulloh.

Ames-Fitzgerald said the society is planning some fundraisers for the next few months, including an Aug. 7 garden party at the Capt. Lord Mansion, an Aug. 15 ice cream social at the Nott House and a Sept. 17 golf tournament.

She said the society also is applying for grants and is waiting on a pending acceptance for one in the near future.

There is no charge to take a tour of the Nott House, only a request for donations in the gift shop. Ames-Fitzgerald said attendance at Nott House was up from last year, with 100 people visiting in the last two weeks, but in general the house brings in approximately $3,700 each year.

McCulloh included a minimum expense report in his plan, which includes upkeep on three properties under ownership of the society, including $8,600 for the Town House School, $7,200 for the Pasco Center and $21,000 for the Nott House and Benson’s Blacksmith Shop, which was not included in McCulloh’s report. He estimates it will likely cost $4,000 more to maintain the Nott House as it ages further.

McCulloh estimates the house could be sold for more than $1 million. It is located on North Street at a visible intersection and  offers commanding views from the top balcony.

Ames-Fitzgerald said a 2009 report identified numerous structural needs.

McCulloh suggested improvements to the house such as a sprinkler system, which could cost between $65,000 and $100,000, and the addition of a full-time employee to keep the Nott House open more often to increase revenues through tours of the house, would require an additional $35,000.

But Soule’s report said the house is not required to have a sprinkler system because of the damage it could cause to the collection inside the house.

If sold, the contents of the house will be given to Nott family heirs, according to Elizabeth Nott’s will.

Soule’s report focuses on how to keep the property, despite the costs.

“The building appears to be in good shape, its contents are catalogued, the costumes are properly stored, the garden and grounds are appealing, and the tour presentation is well thought out,” according to the report.

But he argues there are some ways the society can garner more revenue through grants with help of a historic structures report, which looks at the building’s physical history and current condition, recommends priorities for maintenance and capital projects and helps establish a budget.

Ames-Fitgerald said the society has a budget of approximately $134,000.

Soule agreed upkeep of the house will be expensive, but said he wanted to present two views to members of the society.

“One piece of wallpaper fell off, it costs $6,000 to put a patch back on because of the history and uniqueness,” Soule said. All the wallpaper and carpeting in the house is original.

An historic structures report is a prerequisite to grant options that can help with upkeep at the house, according to Soule’s report. Ames-Fitzgerald wrote the price for the report would be between $80,000 and $100,000. She wrote that the society has not been able to secure grants it has pursued to finance such a study.

The majority of Soule’s findings focus on ways to garner more publicity for the Nott House and suggest the house be open more, have specific scheduled tour times and better marketing.

According to Ames-Fitzgerald, the vote on Oct. 14 will be determined by findings in the strategic report.

“The strategic planning process will lead to a decision on what action (if any) to take to the membership at the annual meeting,” she wrote.

Staff Writer Suzanne Hodgson can be reached at 282-4337, ext. 233.