SCARBOROUGH — A proposal to build a 50-unit affordable housing complex at the historic Southgate House on Route 1 near Dunstan Corner won preliminary approval from the Town Council on Wednesday.
Avesta Housing, a Portland-based nonprofit developer, plans to renovate the interior of 577 U.S. Route 1, a striking brick mansion that’s wrapped in a sprawling white veranda.
The project would create eight apartments in the 1805 house, which was divided into seven apartments years ago. Avesta also would build a 42-unit, one- to four-story apartment building behind the house, which sits on a three-acre parcel.
The project would be financed with assistance from the Maine State Housing Authority and tenants would be limited to individuals or families whose incomes are less than or equal to 80 percent of the area’s median household income, which is $75,487 in Scarborough.
On Wednesday, the council unanimously gave preliminary approval of a contract zoning agreement that would allow Avesta to move ahead with the project. It would include renovations to one barn that may include community space and to another barn “that may be preserved due to its historic value,” the zoning agreement stipulates. A final vote and public hearing is scheduled for Aug. 19.
Known as Dunstan Abbey, the house was built by Dr. Robert Southgate, a prominent early resident of Scarborough who became a court judge, according to a Southgate family history. In March, the town’s Historic Preservation Committee listed the house and its barn among 48 historically significant properties in Scarborough.
Town officials have taken steps in recent years to promote affordable housing development, including 13 single-family homes that Habitat for Humanity of Greater Portland started building in June on 20 acres off Broadturn Road.
Rachel Gurley, who has operated Gurley Antiques Gallery at 581 U.S. Route 1 for three years, wrote a letter to town officials expressing concern about adding so many residents near the high-traffic intersection of Route 1 and Payne Road.
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