AUGUSTA — Three bidders submitted proposals to build a big office building within a mile of the State House that would provide leased space for multiple state agencies.

In October, the state issued a request for proposals to develop and lease to the state a 225,000-square-foot building.

Bid requirements include that the building be within 1 mile of the State House and have at least 1,300 parking spaces and office space for some 1,400 state employees expected to be relocated into the consolidated office space from multiple agencies at other sites.

Three companies submitted proposals by Friday’s deadline.

They were KNG Holdings LLC of Gardiner, which is owned by members of the family that also owns Pine State Trading in Augusta, Hallowell and Gardiner; Opechee Construction Corp., a New Hampshire-based firm that has built at least one other building leased to the state in Augusta previously; and Eastern Impact LLC of Portland.

Nick Alberding, managing partner of Pine State Trading, said he and his cousins Keith and Gena Canning own KNG Holdings.

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He said they are “excited about the opportunity” provided by the request for proposals, but declined to reveal details, or the location, of what is in their proposal to the state. He said they wished to respect the state’s sealed bid process.

Pine State Trading has a large property, where it now has offices and warehouse space, on the Augusta-Hallowell line.

That property appears to be within a mile of the State House. The Augusta portion of the property totals 8.3 acres, assessed at $3.9 million, according to the city assessor’s office.

Hallowell officials could not be reached late Friday for information on the portion of Pine State property in that city.

David Heidrich, a spokesman for the Maine Department of Administrative and Financial Services, said the contents of the three proposals won’t be released to the public until a bid is awarded, if one of the three proposals is selected.

Anastos’ involvement unclear

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He noted the state can reject all the proposals, and they need to meet the requirements of the request for proposals and be of economic benefit to the state to be awarded.

Opechee Construction’s past projects have included a $10 million office building it built in 2012 and leased to the state in the Central Maine Commerce Center.

Mark Googin, a Portland attorney listed as the registered agent for Eastern Impact LLC, said he could not comment on who owns the limited liability company.

Peter Anastos, owner of Maine Course Hospitality Group, told the Portland Press Herald in October that he planned to submit a proposal.

He could not be reached late Friday to confirm whether he is involved with the Eastern Impact LLC proposal, or either of the other proposals submitted Friday.

Anastos secured a purchase option in April on a 9-acre state-owned property on Capitol Street formerly used by the Maine Department of Transportation for vehicle maintenance.

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The site, because of its large size and proximity to the State House, appeared to meet the criteria of the state’s request for proposals. Anastos has ties to Gov. Paul LePage, having been appointed by him to the Maine State Housing Authority.

State seeking efficiencies

City officials in Augusta speculated previously, when the request for proposals first went out, that it seemed to be drawn up almost exclusively so that the former transportation site was the only location that could meet the bid requirements.

“We never really know how many responses we will receive in response to (a request for proposals),” Heidrich said Friday. “Even when an individual publicly states that they will be submitting a bid, they don’t always follow through.”

Heidrich said the state’s intent in limiting the location to within a mile of the State House was not to favor any one bidder but, rather, to gain efficiencies.

“The state would gain the most efficiency – both economically and operationally – by consolidating agencies close to the core of state government,” Heidrich said.

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“There are a number of sites within the 1-mile radius that could be identified and utilized by professional real estate developers.”

He noted leasing space was not the state’s first preference.

The original plan was to construct a state-owned office building in Augusta, but the budget passed by the Legislature didn’t include the $112 million LePage requested to renovate state-owned properties and develop a building to consolidate state agencies. Legislators reduced that amount to $23 million, so the administration put out the request for proposals for leased space, Heidrich said.

The request for proposals doesn’t specify which state agencies would move to the facility. A number of agencies now in leased space and state-owned space could occupy the proposed consolidated offices, Heidrich said.

The exact occupants will depend upon the lease agreements the department negotiates with the owners of properties where those agencies are located now, he said.

Occupants to be determined

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Possibilities mentioned in a list of properties leased by the state, provided to Sen. Roger Katz, R-Augusta, last year after he inquired about LePage’s proposal to build a new consolidated state office building, included multiple agencies now located at the Central Maine Commerce Center and the Department of Health and Human Services in Key Plaza in downtown Augusta.

Heidrich said consolidating agencies within one building or campus could gain efficiencies in services such as plowing, mowing, postal deliveries, reduced travel time for state employees and improved communications among agencies.

He said there is not yet a firm time line for the state to pick which, if any, of the proposals it will pursue.

He said the next step is evaluating and ranking the proposals. After that, the firm with the top-ranked proposal, or proposals if the scoring is close, could be invited to negotiate with the state.

 


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