Opponents of a controversial affordable housing proposal in Cape Elizabeth have filed a petition calling for a town referendum on recent zoning changes that would make the project possible.

The Town Council voted 5-2 on Oct. 13 to approve four zoning amendments that would allow Dunham Court to be built next door to the historic Town Hall and new Village Green.

Save Our Center announced on its website – and town officials confirmed – that it submitted 1,125 registered-voter signatures to Town Clerk Debra Lane on Friday. That’s more than the 865 signatures necessary to hold a referendum, which is 10 percent of the town’s 8,654 registered voters.

If enough signatures are certified, the council would be expected to hold a public hearing on the petition in the coming weeks and schedule a referendum sometime after that. Opponents of the 46-unit proposal have been threatening to circulate a referendum petition for months.

“We are proud to have been one of many contributors to this awesome display of democracy, and thrilled to have seen the unity that allowed the petition effort to wrap up so quickly,” the group said in a statement posted on its website. “This grass roots movement isn’t over yet: hang in there and stay tuned!”

Exactly when the public hearing and referendum would be held is unclear.

Town officials said they are expecting additional petition signatures to be submitted through the 20-day deadline on Tuesday, which is Election Day. Save Our Center had not indicated on its website that it would submit additional signatures.

The Town Clerk’s Office is expected to certify the petition signatures after the election is completed, said Town Manager Matt Sturgis.

A public hearing must be held within 30 days of filing the petition, and the council must schedule a referendum within 14 days after the hearing. The town charter doesn’t specify how soon a referendum must be held.

Town Council Chairman Jamie Garvin said he believes the public hearing would be held Dec. 1 and that the referendum should be held during the next regular election in June, so taxpayers wouldn’t incur additional costs of a separate election, and to ensure a greater turnout and a fairer result.

Save Our Center didn’t respond Sunday to an email request for comment.

The council’s approval of the zoning amendments would be put on hold until the referendum, when the changes would have to be approved by a majority of voters to take effect, according to the town charter.

Dunham Court is the first affordable housing project to come before town officials in 50 years, at a time when affordable housing has become extremely scarce in Cape Elizabeth and throughout Greater Portland.

Opponents of the $13.5 million project don’t like its location, size or financing, and they say the town’s monthslong review has happened too quickly. Supporters say the town center is exactly where an affordable housing project should be, within walking distance of the local supermarket, pharmacy, public schools, community center, police and fire station, and Thomas Memorial Library.

The Szanton Co. of Portland wants to build Dunham Court just off Ocean House Road (Route 77). The four-story building would include 35 one-bedroom, eight two-bedroom and three three-bedroom apartments. The project is being pitched as housing for workers, empty-nesters and others who can’t otherwise afford to live in the affluent seaside town.

Tenants in Cape Elizabeth need a median annual income of $92,000 to lease a two-bedroom apartment at the median price of about $2,300 per month including utilities, according to the Maine State Housing Authority. Prospective homeowners need a yearly household income of $174,000 to buy a median-price home of $625,000.

With the zoning changes, Dunham Court could be built 10 feet taller than the 35-foot height limit in the town center. Other zoning amendments halved the amount of land needed per unit, more than doubled the allowable building footprint, and eliminated a requirement for first-floor commercial space.

The project still needs Planning Board approval and has yet to complete its financing scheme, including a Tax Increment Financing agreement with the town that would give the developer a $795,000 property tax break over 15 years. The council is scheduled to vote on the TIF proposal Nov. 8, Garvin said.

Dunham Court’s financing would include $9.6 million borrowed through MaineHousing and $3.6 million in equity raised through the sale of federal low-income housing tax credits. Under a 15-year TIF agreement for the 46 units, the town would return 75 percent of an estimated $70,653 in new property tax revenue generated by the project, or about $52,990 annually. The Szanton Co. would use the tax rebate to pay the debt on Dunham Court.

If the project is approved, Dunham Court would be an energy-efficient building with a fitness center, community room for residents, free Wi-Fi, heat, hot water, parking, indoor bike storage and coin-operated laundry.

Thirty-seven apartments would be reserved for households below 60 percent of the area median income, which is $42,000 for one person, $48,000 for two people and $54,000 for three people. Nine apartments would be leased at market rate. Subsidized rents, made possible through government financing, would be $1,080 for one bedroom, $1,299 for two bedrooms and $1,495 for three bedrooms; market rents would be $1,495 for one bedroom and $1,695 for two bedrooms.

Copy the Story Link

« Previous

Lack of permits leads to extra costs and delays for Portland school renovation projects

Next »

In tight labor market, some teens wrestle with choosing jobs or sports