On the agenda: Portland Housing & Economic Development Committee Meeting — data center (Oct 6)

Housing & Economic
Development Committee Meeting

MEMBERS
Councilor Pious Ali, Chair
Councilor Regina Phillips
Councilor Kate Sykes
Councilor Sarah Michniewicz

Tuesday, October 6, 2026 at 5:30 PM

To submit written public comment on an agenda item, email [email protected]. Submissions must be
received by 12:00 pm the day before the Housing & Economic Development meeting to guarantee their
inclusion in the agenda packet. All submissions must include the commenter's name and legal address. To help
ensure your comment is submitted for the correct item, please include the name of the agenda item (see below).
REMOTE ACCESS INFORMATION
The Housing & Economic Development Committee will conduct this meeting remotely via Zoom pursuant to
the Remote Meeting Policy adopted by the Portland City Council. Allow your computer to install the free Zoom
app to get the best meeting experience. If you are not able to attend via Zoom, a recording will be available in
the Agenda Center following the meeting.
For public comment via Zoom, you will need to use the "raise your hand" feature. To raise your hand via the
telephone, please hit *9. You will be unmuted by the host when it is time for public comment.
https://portlandmaine-gov.zoom.us/j/83329598115?pwd=QnfQQHnN8dDEDPPXS55htOhMV8zKPz.1
1.

Review and vote to approve Minutes from the September 15, 2026 meeting.
a.

2.

Discussion: Panel Discussion with the Committee regarding Inclusionary Zoning (IZ)
- Councilor Pious Ali, Chair
Panelists include Laura Mitchell - Executive Director of Maine Affordable Housing
Coalition, Todd Morse - President of the Urbanist Coalition, Patrick Hess - Vice President
of Real Real Estate at Avesta Housing, and Erin Cooperrider - Principal in the New Height
Group. This is the first of three meetings the HEDC will hold as it moves forward to
recommend proposed IZ policy changes to the Planning Board. This item directly advances
the City Council's 2026 Common Goals to "Accelerate housing production and strengthen
affordability protections" by considering adjustments to the IZ ordinance to promote
housing production. No public comment will be taken on this item.
a.

3.

See attached draft Meeting Minutes from September 15, 2026

See attached Memorandum

Discussion: Possible policy changes to streamline building permit application review
and approval time - Councilor Pious Ali, Chair
This discussion-only item initiates a discussion regarding the City's current processes and
timelines to date, and the associated rules and ordinances governing that process. This
item directly advances the City Council's 2026 Common Goal to "Accelerate housing
production and strengthen affordability protections" by reviewing the City's building
permit application review and approval process. No public comment will be taken on this
item.
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a.

4.

5.

See attached Memorandum

Public Comment: Review and vote on a recommendation to the City Council on
Purchase and Sale Agreement with Nordic Spa for sale of condo lots #3 and #5 at
City-owned Portland Technology Park. NOTE: Pursuant to 1 M.R.S.A. 405(6)(C), the
Committee may go into executive session to discuss real estate negotiations and
provide guidance to staff. - Pat Finnigan, Interim Housing and Economic
Development Director, and Nancy Martin, Business Programs Manager.
This action item introduces a Purchase and Sale Agreement for lots #3 and #5 at the
Portland Technology Park. The Housing and Economic Development Committee
previously reviewed and provided guidance to staff regarding possible negotiations in July
2026. Public comment will be taken prior to formal Committee action on the staff
recommendation to approve the Purchase and Sale Agreement.
a.

See attached Memorandum

b.

See Draft Purchase and Sale Agreement

Public Comment: Consider recommending that the City Council approve a
Resolution requesting that the Director of Planning and Urban Development apply to
the Planning Board for a text amendment to the Land Use Code to prohibit data
centers in Portland – Councilor Pious Ali, Chair
This action item initiates a preliminary discussion on regulating data centers in Portland
and considers recommending a City Council resolution to request a Land Use Code text
amendment from the Planning Board. While not currently on the Committee Work Plan or
City Council Goals, the item addresses unanticipated development pressures and concerns
regarding data centers' heavy consumption of resources.
a.

See attached Memorandum

b.

See proposed Resolution

Next Meeting Date: October 20, 2026

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MINUTES
HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE
Date: September 15, 2026
NOTE: This meeting was held via Zoom and can be viewed at this link:
https://portlandme.portal.civicclerk.com/event/9668/media
These minutes provide a record of those in attendance, general discussions that took
place and motions made.
Attendance:
Council and Committee Members: Councilor Pious Ali, Chair, and members Councilors
Regina Phillips, Sarah Michniewicz, and Kate Sykes.
Staff: Dena Libner, Assistant City Manager, Michael Goldman, Corporation Counsel, Pat
Finnigan, Housing and Economic Development Department Interim Director, Mary
Davis, Housing and Community Development Division Director, Heidi McCarthy,
Housing Program Manager, Lori Paulette, Principal Administrative Officer, Cameron
George, HCD Compliance Officer, Laken Chapin, CDBG Program Manager, Nancy
Martin, Business Program Manager

AGENDA
1.

Review and vote to approve meeting Minutes from the July 21, 2026,
meeting.
Motion to approve: Phillips
Second: Michniewicz
Passed 4-0

2.

Public Comment: Review and vote to recommend to the City Council
approval for an additional funding request from the Jill C. Duson Housing
Trust Fund regarding Lambert Woods North - Mary Davis, Housing and
Community Development Director
Ms. Davis outlined the item noting that Preservation of Affordable Housing
(POAH) has requested additional loan funding from the Jill C. Duson Housing
Trust Fund (JCDHTF) for $1.3 Million for the Lambert Woods North project,
which will provide for 72 affordable housing apartments across 6 residential
buildings at 622 Auburn Street. She then described the ownership and
financial structure, noting that in October 2025 the City Council approved
funding assistance in the amount of $360,000 for this project from the
JCDHTF.
After several discussions with the developer, Maine Housing, and the City’s
underwriter, Ms. Davis noted that staff is recommending additional loan
financing for the project at $375,000 for a total investment in the project

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from the JCDHTF of $735,000. With this funding from the JCDHTF, it would
leave a balance in the fund of $1.28 Million.
There were then clarifying questions from the Committee including the
make-up of the project, AMI limits, ownership structure, and the JCDHTF,
the Chair opened the meeting for public comment and there was none.
On motion then made by Councilor Sykes, seconded by Councilor
Michniewicz, the Committee voted 4-0 to forward this to the City Council
with a recommendation of approval.
3.

Public Comment: Review and vote to recommend to the City Council
approval of a proposed amendment to the Portland Housing Authority
(PHA) Cumberland Housing Affordable Housing Tax Increment Financing
(AHTIF) District; public comment invited - Heidi McCarthy, Housing
Program Manager
Ms. McCarthy provided the highlights of this item noting that this is a
proposed amendment to the Cumberland Boyd AHTIF which was originally
approved by the City Council in August 2025 as one AHTIF District with two
separate Credit Enhancement Agreements. The model enables access to
both 9% and 4% Low Income Housing Tax Credits by splitting the project
into two distinct deals – one for each tax credit type - that must stand alone
financially despite sharing a single physical building. However, because
managing dual pro formas adds operational complexity, the amendment
being recommended by staff is a vote to the City Council for approval of
amendments to the former Cumberland and Boyd Housing AHTIF District
and combining them for a Cumberland Housing AHTIF District. There is no
financial impact for this amendment.
Seeing no questions, Chair Councilor Ali opened the meeting for public
comment.
Jay Waterman from Portland Housing Development Corporation thanked the
Committee for their time to review this request.
Seeing no more public comment, the Chair then closed the public comment
session.
On motion then made by Councilor Sykes, seconded by Councilor Phillips,
the Committee voted 4-0 to forward this to the City Council with a
recommendation of approval.

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4.

Public Comment: Review and vote to recommend to the City Council
approval of the CDBG Priority Setting Task Force Final Report; public
comment invited - Mary Davis, Housing and Community Development
Director and Laken Chapin, CDBG Program Manager
Division Director Davis recognized the diligent work of staff and the
committee and introduced Chair and Co-Chair Tae Chong and Kristen
Dunphey. Chong and Dunphey provided information on the committee’s
background, goals, and scoring changes.
All Councilors expressed gratitude to the committee for their work.
Councilor Sykes asked about how results from previous years are
incorporated into each year’s allocation. Division Director Davis outlined a
partnership with HHS to better understand how to measure impact on the
greater social good.
Councilor Phillips asked about accepting applications from multiple parts of
a single organization. Chair Chong explained that changes were made to the
application to provide scoring boosts to organizations serving niche
populations. Director Davis added that the new applicant set-aside is still
active, which supports organizations who have never received CDBG
funding. Co-Chair Dunphey added that several items were added to help
reviewers fund the organizations who will make the largest impact with
clarity and objectivity.
Councilor Michniewicz asked how year to year continuity is ensured with a
changing committee. Director Davis outlined the committee process and
application changes. Some committee members carry over year to year.
Motion to move to Council for approval: Councilor Sykes
Second: Councilor Michniewicz
Passage 4-0

5.

Discussion: Discussion and provide guidance to staff regarding an
Entertainment Venue Licensing and Entertainment Sector Benefit
Agreement Ordinance - Michael Goldman, Corporation Counsel
Corporation Counsel Michael Goldman gave some background information
on the Council Order and outlined the work that needs to be done to
implement the Council approved actions. Mr. Goldman asked the committee
members for general thoughts on next steps, such as identifying a potential
manager of the funds, perhaps the Portland Development Corporation
(PDC), and including language in the ordinance regarding the appropriation
of revenues into the fund.

3
Page 5

Councilor Sykes acknowledged that the City is at the beginning of the
process and expressed thoughts that the best path forward would be to
update the cultural plan completed in the 1990’s. The plan would help
identify the social issues the arts should be speaking to. Councilor Sykes
suggests creating a legal framework of how the fund should be formed but
details should wait until the cultural plan is updated. Councilor Sykes
suggested that the cultural plan be fast tracked. She indicated that the PDC
is not the right entity to manage the fund.
Councilor Michniewicz mentioned the timeline to implement the fund which
was included in the ordinance. Mr. Goldman confirmed that the timeline is
tied to the renewal of existing licenses (May 2027), which leaves room for
the committee to have input into the formation of the fund. Councilor
Michniewicz mentioned three issues that need to be addressed as the
discussion moves forward: who pays into the fund, who accesses the fund
and who decides on the use of the funds. She envisioned an initial
collaboration with the PDC and acknowledged the importance of getting
feedback from the entertainment sector, venues and the people who may
access the funds.
Assistant City Manager Dena Libner indicated that staff would discuss the
update of the cultural report with Creative Portland and that the discussion
may expand into the city’s annual budget process. Staff will prepare a
follow-up memo for the next HEDC meeting.
6.

Discussion: Second workshop regarding policies to improve public support
for the arts; no formal action will be taken - Dena Libner, Assistant City
Manager
Assistant City Manager Dena Libner introduced the topic and provided an
overview of the memo included in the packet.
Councilor Sykes indicated that the cultural report from the late 1990’s was
incredible while the 2018 report was more of a nuts and bolts/action
oriented update. She indicated that it was time for the plan to be updated.
Councilor Ali indicated that the conversation needs to include input from the
creative community.
Ms. Libner indicated that the creation of a robust cultural report could be
part of the City’s annual budget discussion.

7.

Adjournment

4
Page 6

Motion to adjourn by: Councilor Michniewicz
Second: Councilor Phillips
Adjournment at 7:29 pm by a vote of 4-0

Next meeting date: October 6, 2026

5
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City of Portland | Housing and Econ. Development Dept.
Patricia Finnigan, Interim Director

To: Housing and Economic Development Committee
Councilor Pious Ali, Chair

MEETING DATE
October 6, 2026
AGENDA ITEM
Item #2: Panel Discussion with the Committee regarding Inclusionary Zoning (IZ). No public comment will
be taken at this meeting. - Councilor Pious Ali, Chair - Item on 2026 City Council Goals
PURPOSE
This will start the Committee’s process to review current IZ policy in an effort to determine if the
Committee will be making any recommendations to the Planning Board for amendments to the IZ
Ordinance.
COMMITTEE WORK PLAN/CITY COUNCIL GOAL ALIGNMENT
A Policy Initiative on the HEDC’s Work Plan is “Consider adjustments to the Inclusionary Zoning Ordinance
to promote housing production.”
BACKGROUND/ANALYSIS
This is the first of three meetings for the HEDC as part of its goals to determine if it will make any
recommendations to the Planning Board for amendments to the IZ Ordinance.
This first meeting is to hear from four panelists and their experiences in dealing with the current IZ
Ordinance, including:
-​ Laura Mitchell, Executive Director of the Maine Affordable Housing Coalition (MAHC ) will share
information about IZ programs in other states or communities. In addition, Ms. Mitchell will
discuss a statement MAHC shared with Portland City Councilors early this year regarding IZ.
-​ Todd Morse, President of the Urbanist Coalition, which is a group of individuals with the “goal of
making Portland, Maine more livable for everyone”. Mr. Morse will speak about the Urbanist
Coalition’s perspective on the City’s current IZ policy.

1

Page 8

-​ Patrick Hess currently serves as the Vice President of Real Estate at Avesta Housing. Prior to joining
Avesta in 2017, Mr. Hess worked for the City of New York and has a range of experience in real estate,
community, and economic development. Mr. Hess will speak about the City’s IZ policy from the
perspective of a non-profit housing provider focused on developing quality, affordable,
mixed-income developments.
-​ Erin Cooperrider is a Principal in the New Height Group, a Maine-based real estate development and
services firm. Ms. Cooperrider has a unique perspective regarding IZ due to her experience as both
an affordable and market-rate housing developer. Prior to joining New Height Group in 2015, she
was the Development Director for Community Housing of Maine (CHOM).
Each panelist will provide a brief introduction of themselves along with their thoughts and perspective on
the City’s IZ policy. This will be followed by a discussion between HEDC members and the panelists which
will help form the basis for the second meeting on this topic.
During the second meeting, scheduled for October 20, 2026, HEDC members will discuss their thoughts and
suggestions for possible IZ Ordinance amendments.
At the third meeting, scheduled for November 17, 2026, the Committee would discuss and vote on possible
recommendations to the Planning Board for IZ Ordinance amendments.
Public comment will be taken at the November 17, meeting.
FISCAL IMPACT
There is no anticipated fiscal impact associated with this item.
CONCLUSION(S)
By the end of this 3-part series, the Committee may be making recommendations to the Planning Board for
amendments to the IZ Ordinance.
PRIOR COMMITTEE REVIEW
At the February 17, 2026 HEDC meeting, the City’s IZ Consultant provided the Committee with the results of
its findings analyzing the various interactions of IZ and its potential impact on development to help inform
policy.
PREPARED BY
Patricia Finnigan, Interim Director
Housing and Economic Development Dept.
ATTACHMENTS - None
2

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Page 17

City of Portland | Housing and Econ. Development Dept.
Patricia Finnigan, Interim Director

To: Housing and Economic Development Committee
Councilor Pious Ali, Chair

MEETING DATE
October 6, 2026
AGENDA ITEM
Item #4: Public Comment: Review and vote on a recommendation to the City Council on Purchase
and Sale Agreement with Nordic Spa for sale of condo lots #3 and #5 at City-owned Portland
Technology Park.
NOTE: Pursuant to 1 M.R.S.A. 405(6)(C), the Committee may go into executive session to discuss
real estate negotiations and provide guidance to staff. - Pat Finnigan, Interim Housing and
Economic Development Director, and Nancy Martin, Business Programs Manager.
PURPOSE
Review and possible vote to recommend City Council approval of Purchase and Sale Agreement
with Nordic Maine, LLC, for Units 3 and 5 at Portland Technology Park.
COMMITTEE WORK PLAN/CITY COUNCIL GOAL ALIGNMENT
This item supports the City Council common goal to strengthen economic vitality and support
local businesses.
BACKGROUND/ANALYSIS
●​ The Portland Technology Park is a 26-acre parcel located near the Maine Turnpike, just
off Rand Road. Its infrastructure construction was funded in part by a 2009 grant from
the U.S. Economic Development Administration (EDA). In accordance with the conditions
of this funding, the property may only be used for industrial/commercial purposes for a
period of 20 years after the award date (until September 2029).
●​ The City received offers to purchase condo units at Portland Technology Park which were
reviewed and evaluated by the Housing and Economic Development Committee at its
meeting on July 21, 2026, in executive session.
●​ Based on guidance from the Committee at that meeting, staff proceeded to move forward
with the offerors. The offer from Nordic Spa is now ready for Committee review.
Remaining offers are still under consideration/negotiation.

1

Page 18

●​ Staff request review and possible vote to recommend City Council approval of Purchase
and Sale Agreement with Nordic Maine, LLC, for Units 3 and 5 at Portland Technology
Park for the sale price of $525,000.
FISCAL IMPACT
N/A
CONCLUSION
Staff are seeking Committee review and vote to recommend approval to the City Council of the
attached Purchase and Sale Agreement with Nordic Maine LLC for Lots 3 and 5.
Corporation Counsel has reviewed and approved the draft.
PRIOR COMMITTEE REVIEW
-​ HEDC, in executive session, reviewed offers received for condo units at Portland
Technology Park at its July 21, 2026, meeting and provided guidance to staff.
PREPARED BY:
Nancy Martin
Business Programs Manager
Housing and Economic Development Department
ATTACHMENTS
-​ Draft Purchase and Sale Agreement for Units 3 & 5

​

2

Page 19

PURCHASE AND SALE AGREEMENT
THIS PURCHASE AND SALE AGREEMENT made this ______
day of October, 2026 (the “Effective Date”) is by and between the CITY OF
PORTLAND, a body politic and corporate located in Cumberland County, Maine
(hereinafter referred to as "Seller" or “City”), and Nordic Maine LLC and/or assigns, a
Maine Limited Liability Company, having its principal place of business at 114 Noyes
Street, Portland, Maine 04103 (hereinafter referred to as "Buyer").
WITNESSETH
WHEREAS, Seller owns an approximately 1.66 acre parcel and an approximately
1.29 acre parcel of land both located at the Portland Technology Park, City of Portland,
County of Cumberland, State of Maine, being known as Units 3 and 5, LCE For Units 3 and
5 on that certain Condominium Plat of Portland Technology Park Condominium, Rand
Road, Portland, Maine dated March 9, 2016, prepared by SGC Engineering, LLC for the
City of Portland – Declarant and recorded in the Cumberland Registry of Deeds on March
10, 2016, in Plan Book 216, Page 62 (the “Condominium Plat,” a copy of which is attached
hereto as Exhibit A and made a part hereof), and that certain Second Amended Subdivision
Plat of Portland Technology Park Condominium dated March 8, 2016, prepared by SGC
Engineering, LLC for the City of Portland approved by the City of Portland Planning Board
on December 8, 2015 and recorded in the Cumberland County Registry of Deeds on March
10, 2016 in Plan Book 216, Page 63 (the “Subdivision Plat,” a copy of which is attached
hereto as Exhibit B and made a part hereof), and being further described as Unit 3 and Unit
5 of the condominium known as the Portland Technology Park Condominium, of which the
Seller is the declarant as described in that certain Declaration of Condominium for the
Portland Technology Park Condominium recorded in the Cumberland County Registry of
Deeds on March 10, 2016, Book 32969, pages 97 as amended by a Certificate of
Amendment To The Bylaws Of The Portland Technology Park Condominium Association
dated December 14, 2018, recorded in the Cumberland County Registry of Deeds Book
35373, Page 323 (collectively, the “Declaration of Condominium”), together with all
improvements, fixtures and rights appurtenant thereto, all as more particularly shown and
depicted on Exhibit A (the “Property”). Title reference is made to a deed from Simon A.
Snyder et alia to the City of Portland dated December 7, 1999 and recorded in the
Cumberland County Registry of Deeds, Book 15211, Page 31; and
WHEREAS, Seller intends to sell the Property, and Buyer desires to acquire the
Property and to construct on the Property a Nordic spa use including enclosed building(s)
with outdoor pools, patios, saunas, and other associated Nordic spa uses that are
permissible under current zoning (“Buyer’s Development”).
NOW, THEREFORE, in consideration of the foregoing and for other good and
valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the
parties, intending to be legally bound, hereby agree as follows:

Page 20

1. SALE.
Seller agrees to sell the Property, and Buyer agrees to purchase the Property in
accordance with the provisions hereof. It is hereby agreed and acknowledged that the
actual description of the Property shall be determined based on the title and related due
diligence work to be completed by Buyer pursuant to this Agreement and that such
description shall be subject to Buyer’s and Seller’s final review and approval before
including the same in the Deed (as that term is defined below) to be delivered by Seller to
Buyer as set forth and described below.
2. CONSIDERATION.
The consideration for the property shall be Five Hundred Twenty Five Thousand
Dollars ($525,000.00) (“Purchase Price”), payable as follows:
(a) A deposit of Ten Thousand Dollars ($10,000.00) to be paid by Buyer within two
(2) business days of the Effective Date and held in escrow by Buyer’s agent, Nate
Stevens of The Boulos Company (the “Escrow Agent”), until closing and applied
to the Purchase Price (or, if applicable, until returned to Buyer pursuant to this
Agreement) (the “Deposit”); and
(b) The Purchase Price, less the Deposit and any Extension Payments (defined below)
to be paid by Buyer to Seller at closing by wire transfer, subject to the adjustments
provided for in this Agreement.
3. TITLE AND DUE DILIGENCE.
a. Due Diligence Period. Buyer will have from the Effective Date until 4:00 PM
on the day that is thirty (30) days after the Effective Date (the “Due Diligence
Period”) to complete any surveys, environmental review, inspections, and title
examinations, and to obtain any site plan approvals, and any other permits and
regulatory approvals required for the construction of Buyer’s Development.
Upon satisfactory completion of Due Diligence Period, buyer shall pay Five
Thousand Dollars ($5,000) as additional Earnest Money Deposit. Provided that
Buyer is conducting its due diligence in good faith, Buyer may extend the Due
Diligence period for an additional thirty (30) period by written notice to Seller
given prior to the expiration of the Due Diligence Period.
b. Permitting Period. Buyer will have from the satisfactory completion of the Due
Diligence Period, one hundred eighty (180) days to obtain all discretionary and
administrative permits and approvals (the “Required Permits”) for their
intended development on the site.
c. Provided that Buyer is conducting its permitting in good faith, Buyer may
extend the Permitting Period for an additional thirty (30) period by written
notice to Seller given prior to the expiration of the Permitting Period. Upon
completion of Permitting Period, buyer shall pay Five Thousand Dollars
($5,000) as additional Earnest Money Deposit within two business days after
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the expiration of the Permitting Period.
d. Deed. Seller shall convey the Property to Buyer at the closing in fee simple by
municipal quitclaim deed with good and insurable title, subject to: (a)
easements, privileges, restrictions, conditions, development rights, special
declarant rights, and agreements created by or referred to in the Declaration of
Condominium, as well as the matters shown or disclosed on the Condominium
Plat and the Subdivision Plat, as may be amended; (b) provisions of (i) the
Maine Condominium Act, and all amendments thereto; and (ii) the Declaration
of Condominium, the bylaws and the plats and plans for The Portland
Technology Park Condominium Association and all amendments or
modification thereto; (iii) building, zoning and land use ordinances; (c) all
restrictions required because the roadway serving the Portland Technology
Park Condominium (including the Property), which roadway will continue to
be owned by the Seller, was improved, in part, with funding from the United
States Economic Development Administration (EDA), United States
Department of Commerce, a copy of which restrictions is attached hereto as
Exhibit C; and (d) such taxes and assessments, including common expenses
allocable to the Property, if any, as are due and payable on the date of delivery
of the Deed. At the closing, Seller shall execute and deliver to Buyer, against
payment of the balance of the purchase price, a Municipal Quitclaim Deed
without Covenant (the "Deed"). Further, Buyer acknowledges that the deed
shall contain (1) a restriction stating that in the event that the Property or any
portion thereof shall be exempt from real and personal property taxes, by
transfer, conversion, or otherwise, then the then-owner of the exempt portion
shall make annual payments to the City in lieu of taxes in the amount equal to
the amount of property taxes that would have been assessed on the exempt
portion of the real and personal property situated on the Property had such
property remained taxable and (2) a restriction prohibiting the construction of a
computer data center or any other physical facility that primarily houses
networked electronic equipment, servers, or telecommunications infrastructure
used to process, store, and transmit digital information on the Premises.
a. Title and Survey Objections. Buyer will have until the end of the Due
Diligence Period to deliver to City any written objections to title,
environmental, or survey matters (other than the permitted exceptions
identified herein) that materially affect insurability or use. Objections not made
prior to the end of the Due Diligence Period will be deemed waived; provided,
however, that objections pertaining to matters of record first appearing after
the end of the Due Diligence Period may be made at any time prior to the
closing.
b. Option to Cure. In the event of a title or survey objection, City will have the
option, but not the obligation, to cure the objection and will notify Buyer of its
election within ten (10) business days after receipt of the objection. In the
event that the City elects to cure the objection, it will have sixty (60) days from
the date of the notice of election, or such other reasonable time as the parties
may agree, to cure the objection. In the event that the City does not elect to
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cure the objection, or, having elected to cure the objection fails to timely do so
to Buyer’s reasonable satisfaction, Buyer will have the option to (1) terminate
this Agreement and obtain a refund of the Deposit (after which neither party
will have any further obligation or liability to the other under this Agreement),
(2) waive the objection and close, or (3) undertake the cure of such objection at
its own expense (in which case it shall have 60 days to do so).
4. INSPECTIONS
a. During the Due Diligence Period, Buyer and its employees, consultants,
contractors and agents shall have the right, at Buyer’s expense, to enter on the
Property at reasonable times in order to (i) inspect the same, (ii) conduct
engineering studies, percolation tests, geotechnical exams, environmental
assessments, and other such studies, tests, exams, and assessments, and (iii) do
such other things as Buyer determines, it is sole discretion, to be required to
determine the suitability of the Property for Buyer's intended use (collectively,
the “Inspections”). The City acknowledges that such Inspections may include
the digging of test pits, which the City hereby approves.
b. Buyer agrees to defend, indemnify and hold harmless the City against any
mechanics liens that may arise from the activities of Buyer and its employees,
consultants, contractors and agents on the Property.
c. Buyer shall exercise the access and inspection rights granted hereunder at its
sole risk and expense, and Buyer hereby releases the City from, and agrees to
indemnify, defend, and hold harmless the City against, any and all losses, costs,
claims, expenses and liabilities (including without limitation reasonable
attorney fees and costs) (collectively, "Damages") suffered by the City on
account of any injury to person or damage to property arising out of the
exercise by Buyer of its rights hereunder, except to the extent that such
Damages result from the act or omission of the City.
d. Buyer shall cause any contractors, consultants or any other party conducting
the Inspections to procure automobile insurance, if applicable, and commercial
general liability insurance coverage in amounts of not less than Four Hundred
Thousand Dollars ($400,000.00) per occurrence for bodily injury, death and
property damage, listing the City as an additional insured thereon, and also
Workers’ Compensation Insurance coverage to the extent required by law; the
forms of all such insurance to be subject to City’s Corporation Counsel’s
reasonable satisfaction.
e. In the event that Buyer does not purchase the Property, Buyer agrees to either
return the Property as nearly as possible to its original condition after
conducting the Inspections; provided, however, the City hereby acknowledges
and agrees Buyer shall have no obligation to clean-up, remove or take any
other action with respect to any disturbance of any pre-existing environmental
contamination on the Property caused by such inspections, studies, tests,
exams, and assessments, and that Buyer shall have no obligation to clean-up,
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remove or take any other action with respect to any pre-existing environmental
contamination disturbed thereby.
f. The parties hereto acknowledge and agree that it is a condition to Buyer's
obligations under this Agreement that the results of the Inspections be
acceptable to Buyer in its sole discretion. If the results of such due diligence
are not acceptable to Buyer in its sole discretion, and if Buyer exercises its
right to terminate this Agreement, Buyer will be entitled to a refund of the
Deposit, and neither party shall have any further obligations or liabilities under
this Agreement except as expressly set forth in this Agreement.
5. REAL ESTATE TAXES, PRORATIONS AND TRANSFER TAX.
Buyer shall be liable for all real estate taxes beginning, as of the closing date and
continuing thereafter. Because the Property is currently owned by the City of
Portland, which is exempt from real estate taxes, no taxes will be assessed for the fiscal
year during which the closing occurs and no taxes will be prorated at the closing,
provided, however, that any assessments and utilities for the Property shall be prorated as
of the closing. The Maine real estate transfer tax shall be paid by Buyer in accordance with
36 M.R.S.A. § 4641-A. Seller is exempt from paying the transfer tax pursuant to 36
M.R.S.A. § 4641-C. The recording fee for the deed of conveyance and any expenses
relating to Buyer’s financing or closing shall be paid for by Buyer.
6. RISK OF LOSS.
The risk of loss or damage to the Property by fire or otherwise, until transfer of title
hereunder, is assumed by the Seller. The Property is to be delivered in substantially the
same condition as of the date of this Agreement unless otherwise stated. In the event
Seller is not able to deliver the Property as stated, Buyer may terminate this Agreement
and receive a refund of the Deposit.
7. PROPERTY SOLD “AS IS, WHERE IS.”
Buyer acknowledges that Buyer has had an opportunity to inspect the Property, and to
hire professionals to do so, and that the Property will be sold “as is, where is” and “with
all faults.” City, and its agents, make no representations or warranties with respect to the
accuracy of any statement as to boundaries or acreage, or as to any other matters
contained in any description of the Property, or as to the fitness of the Property for a
particular purpose, or as to development rights, merchantability, habitability, or as to any
other matter, including without limitation, land use, zoning and subdivision issues or the
environmental, mechanical, or structural condition of the Property. Acceptance by Buyer
of the Deed at closing and payment of the purchase price shall be deemed to be full
performance and discharge by the City of every agreement and obligation contained
herein.
8. CLOSING.
Time is of the essence in the performance of this agreement. The closing shall be held
at the offices of Buyer’s counsel at a time agreeable to the parties on or before the day that
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is thirty (30) days after the end of the Permitting Period (the “Closing Date”). At the
Closing:
a. the City shall execute, acknowledge and deliver to Buyer a municipal
quitclaim deed without covenant conveying to Buyer good and insurable title
to the Property, free and clear of all encumbrances except as otherwise set
forth herein.
b. Buyer shall deliver the Purchase Price to the City.
c. Each party shall deliver to the other such other documents, certificates and the
like as may be required herein or as may be necessary to carry out the
obligations under this Agreement.
Buyer shall deliver evidence, reasonably satisfactory to City’s Corporation
Counsel, that the entity receiving title to the Property is in good standing under
Maine law, and that the individuals acting at Closing and executing documents
on behalf of Buyer are authorized to do so.
9. DEFAULT AND REMEDIES.
a. In the event of Buyer’s default under any of the terms, covenants or conditions
of this Agreement, Seller shall have the right to retain the Deposit, any
Extension Payments, and any interest accrued thereon as aforesaid as
liquidated damages for the breach and not as a penalty therefor. The Buyer and
Seller acknowledge and agree that (i) it is not feasible to determine accurately
the measure of damages that will be caused to Seller by the Buyer’s breach
because the uniqueness of the Property at its location preclude the utility of
comparable figures to determine the extent of damages and (ii) that the amount
stated as liquidated damages is agreed to reasonably forecast the amount
necessary to compensate Seller for its loss in the light of the circumstances
stated in clause (i) and the attendant uncertainties in marketing the Property to
another purchaser.
b. In the event that Seller fails to close hereunder for a reason other than the default
of Buyer, Buyer may, as its sole remedy therefor, and subject to the terms of this
paragraph, either (i) enforce specific performance of this Agreement against
Seller, or (ii) terminate this Agreement and receive the Deposit and the
Extension Payments, plus any interest earned or accrued thereon.
10. SELLER’S RIGHT TO REPURCHSE
If Buyer does not commence construction of Buyer’s Development within 18 months
after the Closing Date, Seller shall have the right, but not the obligation, to repurchase the
Property at the Purchase Price. Upon Seller’s exercise of its right to repurchase the
Property, Buyer shall convey the Property to Seller free and clear of all mortgages, liens,
and other encumbrances, except as set forth in the Condominium Plat, the Condominium
Declaration, and the Subdivision Plat. This right to repurchase shall be assignable by the
City. The provisions of this paragraph will survive closing and will be included in greater
detail in the City’s deed to Buyer or in a Declaration of Covenants, Conditions and
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Restrictions executed before or at the time of Closing, which shall be recorded in the
Cumberland County Registry of Deeds.
11. BINDING EFFECT.
This Agreement shall be binding upon and inure to the benefit of the parties hereto
and their respective heirs, administrators, successors and assigns.
12. ENTIRE AGREEMENT.
This Agreement represents the entire and complete Agreement and understanding
between the parties and supersedes any prior agreement or understanding, written or oral,
between the parties with respect to the acquisition or exchange of the Property hereunder.
This Agreement cannot be amended except by written instrument executed by Seller and
Buyer.
13. HEADINGS AND CAPTIONS.
The headings and captions appearing herein are for the convenience of reference
only and shall not in any way affect the substantive provisions hereof.
14. GOVERNING LAW.
This Agreement shall be governed by and construed and enforced in accordance
with the laws of the State of Maine. The parties consent to the exclusive jurisdiction of the
Superior Court for the County of Cumberland in the State of Maine, for all actions,
proceedings, and litigation arising from or relating directly or indirectly to this Agreement
or any of the obligations hereunder, and any dispute not otherwise resolved as provided
herein shall be litigated solely in said Court.
15. NOTICE.
Any notice required or permitted under this Agreement shall be deemed sufficient
if mailed with first class postage affixed or delivered in person to:
FOR THE SELLER:

City of Portland
Attention: City Manager
389 Congress Street
Portland, ME 04101

FOR THE BUYER:

______________________
______________________
______________________
Attn: ________________

Either party may change his address for purposes of this paragraph by giving the other party
notice of the new address in the manner described herein.
16. SIGNATURES; MULTIPLE COUNTERPARTS.
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This Agreement may be executed in any number of counterparts and by different
parties in separate counterparts. Each counterpart when so executed shall be deemed to be
an original and all of which together shall constitute one and the same agreement. A
signature in a faxed, pdf or other reproduced or electronic document shall be considered
the equivalent of an original signature.
17. BROKERS.
Seller and Buyer each represents and warrants that neither has dealt with a real estate
broker in connection with this transaction, other than that Seller has been represented by
Nate Stevens of The Boulos Company, and that Buyer has been represented by Chris Paszyc
of The Boulos Company. Nate Stevens’ commission will be paid by Seller pursuant to the
terms of a separate agreement between Seller and The Boulos Company, and Chris Paszyc’s
commission will be paid by Nate Stevens. Buyer agrees to indemnify and hold harmless
Seller from any claims made by any broker should Buyer's representation in this paragraph
be false. Subject to and limited by the defenses, immunities and limitations of damages
available to the Maine Tort Claims Act, Seller agrees to indemnify and hold harmless Buyer
from any claims made by any broker should Seller's representation in this paragraph be false.
The foregoing indemnities shall include all legal fees and costs incurred in defense against
any such claim, and shall survive closing.
IN WITNESS WHEREOF, the parties have hereunto set their hands and seals on
the day and year first above written.
CITY OF PORTLAND
By:
WITNESS

Name: _______________
Its: ______________________
____________________________

By:
WITNESS

Name: __________________
Its: _______________________

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Exhibit A
[See Attached Condominium Plat]

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1014 / 017B

Page 29

Exhibit B
[See Attached Subdivision Plat]

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1014 / 017C

Page 31

Exhibit C
COMPLIANCE WITH EDA RESTRICTIVE COVENANTS
The Seller and Buyer acknowledge that the Property was improved, in part, with funding
from the United States Economic Development Administration (EDA), United States
Department of Commerce, EDA Project Number 01-01-08630 and is subject to the terms
and conditions of the EDA financial assistance award. Consequently, all recipients or
owners and/or their successors and assigns, agree as follows:
Real Property or tangible Personal Property improved with EDA Investment Assistance
must be used in a manner that is consistent with the authorized general and specific
purposes of the Award, in this case, commercial purposes and EDA policies concerning
adequate consideration and environmental compliance; and any applicable provisions of
13 CFR §314. It may not be used in violation of the nondiscrimination requirements set
forth in 13 C.F.R. §302.20 or for inherently religious activities prohibited by applicable
federal law.
Buyer agrees to provide Seller and/or EDA with any document, evidence or report
required to assure compliance with federal and state law, including, but not limited to,
applicable federal and state environmental laws.
The use of the Property, (improved with EDA assistance), for any purpose other than the
authorized purpose of the EDA grant, which in this case is commercial uses, is prohibited.
This covenant shall remain in effect for a period of twenty (20) years.

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City of Portland
Michael Goldman, Corporation Counsel

To: Housing and Economic Development Committee
Councilor Pious Ali, Chair

MEETING DATE
October 6, 2026
AGENDA ITEM
Agenda Item #5 – Discussion: Consider recommending that the City Council approve a
Resolution requesting that the Director of Planning and Urban Development apply to the
Planning Board for a text amendment to the Land Use Code to regulate data centers in Portland –
Councilor Pious Ali, Chair
PURPOSE
This item is on the Agenda for a discussion and possible recommendation to send a Resolution to
the City Council for approval on the future of Data Centers in Portland.
COMMITTEE WORK PLAN/CITY COUNCIL GOAL ALIGNMENT
This item is not on the Committee Work Plan or the City Council Goals, but recent developments
in data centers have raised concerns nationally and locally, including by Councilor Ali and other
members of the Council.
BACKGROUND/ANALYSIS
There have been concerns raised nationally and locally, by City Councilors and Portland residents,
regarding data centers in Portland, due to their taking up very large amounts of land, require
substantial electricity and water usage for cooling and related operations, and often generate air,
water, and noise pollution. Existing ordinances and development standards do not adequately
address the unique infrastructure demands, environmental impacts, impacts to neighboring
property owners, and operational characteristics of data centers. As a result, Planning staff have
recently begun considering changes to the City’s Land Use Code to address concerns about data
centers. The Committee is being asked to consider the attached Resolution requesting that the
Director of Planning and Urban Development apply to the Planning Board for a text amendment
to the Land Use Code to regulate data centers in Portland.
Therefore, the attached proposed Resolution is being presented to the HEDC for a possible vote to
send it to the City Council for approval.

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FISCAL IMPACT
There is no anticipated fiscal impact associated with this item.
CONCLUSION(S)
Chair Councilor Ali has asked the Committee review and possibly to vote on sending to the City
Council the attached Resolution, which requests that the Director of Planning and Urban
Development initiate the process for amendments to the City’s Land Use Code and develop
amendments for consideration by the Planning Board and City Council that address the
development of Data Centers within the City of Portland.
PRIOR COMMITTEE REVIEW
N/A
PREPARED BY Michael Goldman, Corporation Counsel
ATTACHMENTS - Proposed Resolution

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MARK DION (MAYOR)
PIOUS ALI (A/L)
APRIL D. FOURNIER (A/L)
BENJAMIN GRANT (A/L)

CITY OF PORTLAND
IN THE CITY COUNCIL

SARAH MICHNIEWICZ (1)
WESLEY PELLETIER (2)
REGINA L. PHILLIPS (3)
ANNA BULLETT (4)
KATE SYKES (5)

RESOLUTION REQUESTING ORDINANCE AMENDMENTS REGULATING DATA
CENTERS IN THE CITY OF PORTLAND
WHEREAS, there is increasing interest within or surrounding the City of Portland in the siting
and development of large-scale data center facilities used for the processing,
storage, and transmission of vast amounts of digital data, which rely on extensive
equipment, systems, and environmental controls to maintain suitable conditions
for their operations (“Data Centers”); and
WHEREAS, such Data Centers are on a scale larger than previously contemplated by the City of
Portland or the State of Maine, and there is a strong likelihood of continued
development pressure for Data Centers, including within and surrounding the City
of Portland, due to regional and national demand; and
WHEREAS, the City’s comprehensive plan, ordinances, regulations, and policies do not
consider the consequences that could result from the siting, installation,
operation, and decommissioning of Data Centers within Portland; and
WHEREAS, without appropriate local regulation, the siting, installation, operation, and
decommissioning of Data Centers within Portland raise legitimate and substantial
questions about the impact of such facilities, including but not limited to:
(i)​

Whether Data Centers are compatible with existing and permitted land uses;

(ii)​

Whether Data Centers can be appropriately located and regulated to avoid or
minimize potential adverse impacts from the noise, heat, emissions, and other
nuisance conditions that may be associated with Data Centers and their extensive
machinery, systems, and environmental controls;

(iii)​

Whether Data Centers can be located to avoid or minimize adverse environmental
effects and visual impacts;

(iv)​

Whether Data Centers will result in a shortage or overburdening of public
facilities including local water supplies, roads, waste management systems, and
other public infrastructure;

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(v)​

Whether existing regulatory and financial assurances, if any, are adequate to
ensure that such development will be properly sited, constructed, operated, and
decommissioned;

(v)​

Whether excessive land and water resources will be devoted to this emerging use
to the detriment of surrounding properties, natural resources, and other existing
and permitted uses; and

WHEREAS, appropriate local regulation is needed to address the impacts that might result from
the siting, installation, operation, and decommissioning of Data Centers within the
City of Portland and protect public facilities and the health, safety, and welfare of
Portland and its residents and visitors.
NOW, THEREFORE BE IT RESOLVED, that the Portland City Council hereby requests that
Director of Planning and Urban Development apply to the Planning Board to
initiate the process for amendments to the City’s Land Use Code and develop
amendments for consideration by the Planning Board and City Council that
address the development of Data Centers within the City of Portland.

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