Robert de Ros, Staff Writer
On April 17, 2023, the Mayor and City Council had every intention of voting on, “after deliberation”, whether to buy or not to buy the McIntyre Property from the GSA on behalf of the residents of Portsmouth at fair market value.
They Admitted Being Completely Unaware of What Fair Market Value Would Be
Yes, they marched head long towards purchase not knowing the cost to stay and play with the GSA. Why would anyone contemplate writing a blank check for a piece of real estate without all the facts?
Unless the Money to be Used Was Someone Else’s. It Sure Is. Likely Yours
Obviously, this Council’s concern lies with somehow distancing themselves from the project. Not whether there was enough money; how the money would or could be raised; or even if the project was of benefit to the residents.
Residents Lead – Hapless City Council Follows
That seemed to be of secondary importance as the meeting opened. Until questions were raised it appeared to simply be about their bosses, the residents, leading the way. With due respect, who moves to deliberate a vote knowing how much they don’t know?
What a colossal waste of time. Were they ignorant or did they know exactly what they hoped to achieve?
Now that the $1 Option for McIntyre has Disappeared, How Would a Multi-Million Dollar Purchase Be Funded?
The Council could bond to purchase if they could prove the proportionate public benefit.
The Council could do a short-term anticipation note with intent to bond as was done by another council for the Foundry Place Garage.
But how much? Did they query the GSA? How about a real estate appraisal?
The City Has Moved On Through This Council to a Lawsuit with the Development Partner.
Lost is the McIntyre for a dollar, although sometimes what you pay for is what you get – complicated leases with the Federal Government and a very sophisticated partner. One trying to maximize profits and the other whose sole job is to see that profits remain reasonable.
What could possibly go wrong?
The same could be said of last Monday night.
More to the Point is How it Happened, And Why
What happened to direct communication by the Council with the partner? Like him or loathe him, the Council bore the elected responsibility of representing the residents.
Why Did the Council Shift Negotiations to the City Manager?
The Mayor took a Council vote last year to grant authority to a salaried City Manager to negotiate on behalf of the Council (in turn the residents).
What were the Mayor, Assistant Mayor, and Council doing?
Did McIntyre matter that little?
This Was Their Responsibility
As difficult and complicated as the McIntyre might have been, the Council took an oath. They owed it to the residents to show up to negotiate directly and take ownership of the project.
If they were going to substantially change it then they needed to say, “We can’t build A. We need to build B.” They needed to be transparent both to the resident and the developer.
Should the Council vote to purchase the McIntyre building, they would own a very valuable asset. Now the question of what to do with it.
There’s obviously one developer who’s already stated through their legal counsel that they’d be willing to help. Right, the developer who’s suing the City about the McIntyre.
Now the City May be on the Hook for Tens of Millions of Dollars…
The Council could eventually buy the McIntyre and end up using it as a negotiating tool – a bargaining chip now that the City really is in trouble and on the hook for possibly “Tens of millions” of dollars.
That’s very scary and very possible. And there’s nothing to stop them.
…Because they outsourced their responsibility.
With due respect, shame on this Council for outsourcing as it led to the current situation…. Half past the middle of nowhere.
Then to contemplate a vote using the residents’ opinions late at night to decide the fate of the McIntyre when they, the Council, knew less. How sad. If you believe the current Council could be that ignorant.
Like the Previous Council, this Council also threatened to fire Redgate Kane!
The current Council also recently threatened to fire the developer. Interesting after signing the settlement agreement.
Isn’t that a bit hypocritical after vilifying the previous Council for likewise firing the developer.
So here we are with the City embroiled in a very serious lawsuit with a developer; an ignorant City Council delegating their elected authority; a commitment to 7.4% unlevered profits to the developer now suing and a map that proposes only a long and very expensive route to arrive at any sort of desired destination.
If You Find Yourself in a Hole Stop Digging!
Can they get themselves in any deeper at taxpayer’s expense? Find out by simply attending the May 1 Council meeting.
About the Author. Robert is a well-informed and concerned Portsmouth resident who would prefer to remain anonymous.
