Portsmouth, you are being played like a fiddle.
Reread McIntyre Mess, Part V.
You will notice two major gaps in the history of the property. They both occur in 2014 as written in the Seacoast Online April 2, 2014 article.
The GSA Pushes Back
The regional administrator for the General Services Administration, Robert Zarnetske, wrote a letter to Mayor Robert Lister dated March 27, 2014 stating that the GSA never had to move the occupants out of McIntyre, especially because it didn’t make fiscal sense to do so.
This ran completely counter to the provisions in the 2004 Appropriations Act which set aside millions of dollars to make it possible for the McIntyre occupants to move to another location and vacate McIntyre.
There was no consideration of whether the move made financial sense. They were to move, using the authorized monies, and turn the building over to the City.
Of course, there may have been forces within the City management that did not want the City to own McIntyre. It is understandable that the City manager, John Bohenko, may have wanted McIntyre to be on the City’s tax rolls. But it seems strange that Mr. Bohenko didn’t want the City to first own the building, then place desired deed restrictions on it and finally to sell it to a reliable developer.
Observers familiar with that time indicate that John Bohenko, then City Manager, knew the GSA administrator and may have worked with him to push back on the 2004 agreement fashioned by Senator Judd Gregg.
Senator Jeanne Shaheen Gets Involved
U.S. Senator Jeanne Shaheen reports in the same article that she had spoken directly to the White House regarding the GSA’s intransigence. “I disagree with the GSA’s interpretation of the situation and was disappointed by their response to the city,” Shaheen, D-N.H., said in a statement Tuesday, April 1, 2011. “I’ve raised concerns directly with the White House and plan to explore all available options to make sure the McIntyre Building is transferred to the city of Portsmouth.”
But what happened after that? It seems strange that she, as a U.S. Senator, could not have a strong influence on Mr. Zarnetske’s position, causing him to be more agreeable with her position. Maybe Mr. Bohenko’s reticence to own McIntyre came to the fore. Maybe Mr. Zarnetske told the White House to pound sand. The resolution to this difference of opinion seemingly was no resolution. Then-Mayor Lister was never able to get McIntyre transferred to the City.
The GSA – Developer Link
The GSA’s neutrality has become further compromised regarding the fate of McIntyre. McIntyre is now vacant. Its occupants, predominantly Federal agencies, are now all situated in Michael Kane-related properties. John Kelly, the GSA Director of Real Property Utilization and Disposal, supervises the disposition of the McIntyre property. Reportedly, he is familiar with the developers in Portsmouth and the question quickly arises, “How can the City be treated fairly when the McIntyre property is being sold by a potentially compromised party at GSA?” Does the GSA better represent the interests of the developers than those of the City?
Resolution
This is partly why McIntyre is a mess.
Sadly, none of the parties, the developers, the City Manager or the City Council, have shown the ability to conduct themselves well regarding the McIntyre.
Here’s our suggested path forward:
- Retain outside counsel of the caliber of John Connelly of Boston to execute this plan.
- With the help of Senator Shaheen, require that the GSA turnover McIntyre to the City for $1.
- The City requests proposals (RFPs) for developing the property.
- Strong consideration should be given to subdividing the property.
- Allow for the existing building to be torn down and replaced.
- Turn the back part of the property into underground parking and a surface urban park.
- Apply necessary deed restrictions to accomplish the City’s goals.
- Sell the front part of the property to the lead proposer of the RFP.
The City keeps the front lot on the tax rolls. The underground garage is City-owned and managed by an outside contractor. The contractor operates on the three-year agreement to be rebid at renewal.
We have the opportunity to set this on the right course to resolve a long-standing problem with the City. Let’s do it now.
