LEWISTON- Instead of giving final approval at their March 3rd meeting, City Councilors opted to require one more vote of approval of a $1.4 million guarantee to aid in the sale of the Colisee.
The original motion was simply to approve the guarantee, with the City Administrator tying up any loose ends when and if necessary.
Council President David Chittim proposed an amendment to require a final Council vote, only after Mill Town Sports and Entertainment secures an in-process loan, and is able to answer more questions about the financial viability of their business.
That amendment passed by a 4-3 vote, with Councilors Longchamps, Roy, and Martel opposed.
Mill Town negotiated a sales price with the existing owner for $4.9 million.
A loan with T&M Investments is expected to cover $3.5 million of the purchase price, but that loan process has not yet been finalized.
The city is being asked to make up the difference with a guarantee of $1.4 million.
Think of the city as a co-signer on a loan for Mill Town. The city won’t have to expend the $1.4 million unless Mill Town is unable to make payments to the current seller.
The Colisee building and property is considered to be valued at more than the current selling price, so if Mill Town were to go defunct, the city would likely be able to recoup its losses.
The city would, however, need to come up with $1.4 million to cover the guaranteed amount.
The Colisee is an iconic structure in Lewiston
Several area residents spoke in favor of the proposal, citing entertainment events and youth hockey programs as essential parts of their families’ lives. A small group of youth athletes even attended the Council meeting to show their support.
One resident even cited the likely annual economic benefits resulting from the Colisee as more than making up the amount being risked by the city.
Mill Town took over management of the Colisee last summer. They operate the Lewiston MAINEiacs hockey team.
Nate Bostic, owner and CEO of Mill Town, at the meeting admitted that he and his team are learning as they go because there isn’t any playbook, but that they’ve had success in the past and feel they will be successful with their ownership of the Colisee.
The current owner is a doctor who lives out of state. Some believe that a change in ownership could lead to in increase in entertainment events, which have seemed to increase since Mill Town took over management of the Colisee last July.
Bostic has plans to start youth hockey programs soon, and there is a worry that the Council requiring another vote could add ambiguity and potentially scare off investors.
Bostic has ambitious plans for the Colisee, including acquiring turf so that indoor soccer matches can be played there.
It is unclear when the Council will be asked to vote for final approval, but Mill Town has made it clear that their scheduled closing date is April 30th of this year.