11/15/2024 | Press release | Distributed by Public on 11/15/2024 09:01
Waldo Community Action Partners plans to maintain critical internet connectivity infrastructure and pay $3.06 million for the property, which is above both the appraised value and the offers from the two other respondents
ORONO, Maine - A Waldo County nonprofit received the highest score among three proposals to purchase the Hutchinson Center in Belfast, allowing it to move forward to negotiate a sale agreement with the University of Maine (UMaine).
Waldo Community Action Partners (WCAP) offered $3.06 million for the property - well above the appraised value of $2.52 million and the offers of $1.8 million from the Future of the Hutchinson Center Steering Committee/Waterfall Arts and $1.1 million from Calvary Chapel Belfast.
Like the two other bidders, WCAP also agreed to lease the space currently housing Networkmaine infrastructure back to the University of Maine System (UMS) at no cost for at least five years so the System can maintain important internet connectivity for public schools, libraries and other institutions in the midcoast.
Additionally, WCAP demonstrated proof of funds and their top-scoring proposal did not have any contingencies that could delay a timely transition of the property, which the university anticipates could be completed by early 2025. As is standard with System solicitations, the university has the right to terminate negotiations at any point if they are not proceeding in a manner that is in its best interest as a public institution.
All three bidders were notified earlier today of the outcome of the request for proposals (RFP) process and the ability of those with lower-scoring offers to appeal the award in writing within five business days.
This is the second solicitation to find a buyer for the Hutchinson Center, which includes a 30,515-square-foot main building, 1,963-square-foot barn and 11.6 acres, and it generated proposals from the same three local organizations as the first. In September, the System rescinded a previous award to negotiate after determining during the second stage of a formal appeal process that there had been a deficiency in the original RFP's evaluation criteria because it did not allow for the full financial impact associated with the Networkmaine hub to be considered.
In response, a new RFP was issued on Oct. 4 and based on the proposed purchase price in relation to the property's appraised value (85 of 100 total points available), various contingencies typical with real estate transactions (10 points) and the cost of the Networkmaine-related lease (5 points).
To promote continued fairness and transparency, additional information was provided by the university at a bidders' conference on Oct. 10 (External Site) and in responses to written questions posted online on Oct. 17 (External Site) and Oct. 31 (External Site). Proposals were due by Nov. 1 and objectively scored by a six-person team of UMaine and System professionals.
Hutchinson Center history
The decision to sell the Hutchinson Center followed two decades of UMaine delivering education there and then two years of stakeholder engagement when a decline in student enrollment and escalating operating costs made it clear it would no longer be viable for the public university to sustain the facility. No degree-seeking students have taken classes in-person at the center since 2020.
The sale is consistent with a commitment in the System's new strategic plan to achieve fiscal and energy efficiencies through the sale or lease of unused or underutilized buildings and land. In the last 16 months, System trustees have authorized the sale of 11 buildings totaling nearly 92,000 square feet and 113 acres.
Property transfers generate savings necessary to maintain affordable UMS education and allow the System's limited financial resources - which come through taxpayer and tuition dollars - to be focused on improving infrastructure essential to the current and future needs of Maine and its students.
The Bank of America donated the Hutchinson Center to UMaine in 2007 as a gift with no conditions. Since then, the university has invested more than $14 million in capital improvements. That includes funding three-quarters of a large expansion project completed in 2009, for which UMaine still owes $885,000, plus interest.
The University of Maine System (UMS) is the state's largest driver of educational attainment and economic development and its seven public universities and law school are the most affordable in New England. Over the past two decades, UMS has awarded 106,362 degrees and spurred and strengthened thousands of small Maine businesses through its world-class research and development activities. For more information, visit www.maine.edu.
Samantha Warren
Director of External Affairs, University of Maine System
207-632-0389 / [email protected]