Work is expected to begin early in 2024 on an approximately $35 million project that would reportedly create 63 housing units at two buildings off Temple and Front streets in downtown Waterville, Maine, according to the developer.
Todd Alexander, a vice president and partner at Portland-based Renewal Housing Associates LLC, said Dec. 4 that the Head of Falls Village project is to be done in phases, with the first portion to include the demolition of four buildings at the site and the removal of contaminated soil.
"I think folks might start seeing activity on the site as early as February or maybe early March," he added. "I think if all of the funding were to fall into place, we would be constructing the first building on the site as early as this time next year — early fall into winter — but it could be delayed if all funding is not in place."
Alexander is developing the project with Northland Enterprises Inc., a real estate development and management company located in Portland.
Waterville City Council Chair Rebecca Green, D-Ward 4, who also leads the town's Housing Committee, told the Morning Sentinel that the project is exciting on a number of levels.
"It's critical to provide relief from our housing shortage over the next few years, and it's also beautifully designed," she said. "It will transform the streetscape on Front Street, between Temple and Appleton [streets], creating a vibrant gateway to Head of Falls. I hope we see more projects like this in the coming years."
The Waterville Planning Board approved a site plan for the project in late July, and the developers bought the properties, totaling about 1.7 acres, in early November.
The buildings are currently vacant, but formerly housed Universal Bread, Damon's Beverage & Redemption, the former Bob-In restaurant and lounge, Creative Sounds & Video Systems, and a former office building known as the Heath House at 60 Front Street.
Alexander said the goal is for one shop owner to open a boutique market on the first floor of the Front Street building that would offer prepared foods, beer and liquor.
Plans also call for a 33,800-sq.-ft. building facing Temple Street that would have about 15,000 sq. ft. of office space on the first and second floors and 18 rental apartments on upper floors, which would be so-called "workforce" apartments, funded partially by money from MaineHousing. The apartments would be regulated under a program that limits occupancy to residents with household incomes at or less than 80 percent of the area median income level for Kennebec County.
The 45 units off Front Street, on the other hand, would be offered at the market rate.
The 49,400-sq.-ft. building facing Front Street would feature about 6,600 sq. feet of retail space on the ground floor and its apartments located on upper floors, with approximately 90 on-site parking spaces planned for the west side of the buildings.
In addition, a two-way drive between the structures would connect Temple and Appleton streets and double as a space for cultural events, farm markets, pop-up cafes as well as a place to socialize.
Private, Public Funding Critical for Project's Construction
The new building construction timeline, Alexander added, depends entirely on funding.
Both private and public money is needed to build the Waterville project, the Morning Sentinel reported.
The developers applied to the Maine Housing Authority for funding under the Renewal Affordable Housing Program, a new initiative intended to provide money for workforce and affordable housing.
Renewal Housing Authority and Northland Enterprises received an initial award and are now going through an underwriting process. They anticipate funding also will come for the 18 units in the Temple Street building, according to Alexander.
The project received almost $200,000 from the Maine Department of Economic and Community Development's Community Development Block Grant program to help with demolition and remediation, and the developers have been working with the Kennebec Valley Council of Governments for brownfield remediation funding.
They also plan to seek tax increment financing from the city to help pay for public infrastructure improvements, according to Alexander. Other funding would include traditional private sector money, commercial lending program funds, or equity investments, he told the Morning Sentinel.
He noted it is important that developers of projects such as this, which are difficult to finance and cannot be done through conventional methods, be patient enough to ensure the sources of funding are consistent with their project's goals and visions.
In addition, Alexander described the Head of Falls Village effort as a big one for Waterville and, although a private undertaking, includes public funding, so private-public collaboration is a must.
"It's really, really important that we get this right," he explained.
Head of Falls Village to Fill Niche Market
Alexander said Head of Falls Village also is intended to complement a nearby $40 million housing project under way at the Lockwood Mill on Water Street, which is to include 65 affordable apartments and has received funding from MaineHousing for units whose rental cost is based on 60 percent or less than the area median income.
In contrast, Head of Falls Village would serve more of a middle market or slightly higher income level than households traditionally served under the low-income tax credit program, according to Alexander.
"I think it's really important within a downtown to hit as many income levels as you possibly can," he said. "If we can pull this off in coordination with the Lockwood Mill, it will be nice for the downtown to be able to serve those different markets."
The second phase of Head of Falls Village, after demolition and soil remediation, would include infrastructure improvements, including water, stormwater and sanitary systems, and utilities to connect to both buildings.
Its third phase will concentrate on constructing the building facing Temple Street, with the final portion of the work focused on erecting the building along Front Street. Depending on how quickly the financing can be secured, the buildings could be built at the same time.
Josh Benthien, CEO of Northland Enterprises, focuses on the commercial, office and retail aspects of the project, allowing Alexander to work on the housing part.
The project's structural architect is Jesse Thompson from Kaplan Architects, and the landscape architect is Nick Aceto of Aceto Landscape Architecture + Urban Design, both based in Portland, while the civil engineer is Adrienne Fine from Terradyn Consultants, located in New Gloucester, Maine.
Community support for the project has been strong, Alexander noted, and it was important to not only have that support, but to develop it in a community that was already focused on downtown revitalization and housing.
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