NEWS

Rochester sticking to plan for downtown sites

'We're not giving up' on developing downtown properties, manager says

Kyle Stucker
kstucker@seacoastonline.com
The building at 38 Hanson St. in Rochester remains vacant, but city officials say they remain hopeful about finding a developer. [Deb Cram/Fosters.com]

ROCHESTER — Lilac City leaders didn’t get the interest they had hoped for in the redevelopment of three key downtown properties, but they say it won’t deter them from the strategic path they’ve blazed.

City Manager Blaine Cox said Rochester isn’t going to settle or seek short-term gains just because it only received one joint proposal for Scenic Theater and the Salinger block, and no proposals for the nearby vacant auto parts store at 38 Hanson St.

“I really see this whole process as being iterative,” he said. “We don’t have all the answers, but we’re trying to put the pieces of the puzzle together as we go. I don’t see it as a step back. I just see it as step in a process. With every step, we learn a little bit and adjust accordingly.”

The Scenic Theater and Salinger block is home to vacant historic buildings located next to each other near the start of North Main Street. The one-story building at 38 Hanson St. was once Rochester’s first Ford dealership and almost became a controversial $500,000 parking lot until a public outcry led the City Council to contract Keller Williams Realty to market the property.

Rochester has been requesting proposals for each of the buildings, rather than asking for bids or putting them on the market outright, because officials see their redevelopment as huge opportunities to support downtown’s long-term revitalization, Cox and other city officials have said.

The only proposal Rochester received was a Rochester Housing Authority plan that called for renovating the Salinger block and deteriorating Scenic Theater into mixed-use buildings, along with additions on the rear of the buildings for additional residential units.

“The committee that came together to review the proposal decided the approach the housing authority put on the table wasn’t really what we were looking for,” said Cox.

However, that process brought to light the fact that another developer almost submitted a proposal for the project.

“Through the Economic Development Department, we were made aware of the fact that there was at least one developer out there who spent an inordinate amount of effort in putting together a proposal but decided it wouldn’t put it in because it couldn’t make the numbers work,” said Cox, declining to identify the developer. “What I’m hoping is to have some conversations with those folks to shed some light on how the city might come at this from a different angle to make this work.”

Cox said he couldn’t disclose details about the developer’s proposal. If the sides can’t find a way to make the numbers work for the developer, Cox said he hopes Rochester can negotiate some type of arrangement to use the developer’s work product in some capacity.

At last week’s State of the City event, Mayor Caroline McCarley hinted city officials are “just incredibly excited about it” and that she believes very little would have to be done to help it “totally take off.”

“I can’t say anything more, which is a bummer, but I think it’s going to be a great thing for downtown,” said McCarley.

While Rochester officials talk with that undisclosed developer about the Scenic Theater and Salinger block project, Cox said they’ll also discuss with Keller Williams some of the reasons why 38 Hanson St. may have failed to garner interest. The city is just a few months into its one-year marketing contract with Keller Williams for that property.

McCarley challenged local business leaders during the State of the City event to suggest some ideas for 38 Hanson St. because she said the city “can always use” the business community’s help.

It remains to be seen whether city officials will put out additional requests for proposals for any of the three buildings, or adjust their overall approach. Cox said no decisions have been made because Rochester wants to maintain flexibility and avoid predetermination in the process.

City boards are in the final review stages of various changes that would increase downtown’s housing density and make downtown more attractive and easier for developers. Enacting some of those changes could yield more interest in the aforementioned properties, although Cox said key developers in the region were aware the changes were in the works when the city’s RFPs went out.

While Cox said he wished more than just one proposal was submitted for the three properties, said he wouldn’t call the city’s approach or results “disappointing” thus far.

“We’re not giving up,” he said. “We’re going to take the time we have to to make sure the properties are developed in the most beneficial manner for the city.”