South Portland may pursue partnership with developer for Mahoney site

 The former Mahoney Middle School and its adjacent field. South Portland could pursue a partnership with a private developer to redevelop the old Mahoney Middle School.  A developer would be able to benefit from federal and state historic tax credit programs, which could pay for up to 30% of the total project cost, according to Assistant City Manager Joshua Reny. That would significantly shrink the price tag that many residents and council members viewed as too steep. When the original conceptual design for the civic hub came in with a price tag of  [$193.8 million](https://www.pressherald.com/2025/12/19/projected-costs-for-new-south-portland-civic-center-are-120-million-more-than-first-estimated/) in December — $120 million more than preliminary estimates — councilors said that they couldn’t imagine residents voting for something that expensive. The plans have since been [scaled back](https://www.pressherald.com/2026/02/18/south-portland-city-council-backs-cheaper-mahoney-option/), with a renovation option estimated to cost $70 million to $76 million and leave 25% to 35% of the building unoccupied. Councilors were discouraged, and said that appeared as if the proposal had lost sight of the original goal. They decided to [postpone the referendum vote](https://www.pressherald.com/2026/03/19/a-civic-hub-at-mahoney-will-not-be-on-this-years-ballot/) for a year to search for alternatives. Many Mahoney City Center Committee members believe a public-private partnership could be the solution. “It renewed my optimism that we can really have a project,” said Sharon Ames, a committee member.  The Mahoney City Center Committee unanimously recommended putting out a request for proposals for a public-private partnership. The City Council will vote on the request at its meeting on July 7.  Advertisement If approved, it could take a couple of weeks to collect proposals, and the selected developer could have an ironed-out proposal back to the council in six to nine months, said Mike Hulsey, the chairperson of the Mahoney committee and director of the South Portland Housing Authority. Aside from the fee for the work done during that time, there is no commitment unless the council ultimately approves the developer agreement.  This would keep the project on track to go to referendum in November 2027, if it still needs to.  A lease-purchase agreement is flexible, and depending on the payment schedule and amount, it could eliminate the need for a large sum of taxpayer money.  It would be up to the City Council to decide if it still wants to send a question out to voters in the event of a change in financing, City Manager Scott Morelli said.  The city and the developer would need to figure out the structure of a partnership, according to Brian Clark, a member of the Mahoney committee. In one likely scenario, the city would sell Mahoney to the developer with a plan to lease it until it can reclaim ownership. The city could decide the timing, according to Reny, depending on how much and how long the city wants to pay.  Mahoney committee members have met with four developers interested in partnering with the city and were encouraged by the feedback they received. Developers Collaborative, Great Falls Construction, Barrett Made and FD Stonewater each has experience repurposing old buildings, and some of them said they could pitch a final project with a smaller price tag, according to Hulsey.  Advertisement “They really feel like this project has legs and is doable,” Hulsey said.  All of the developers the committee members have been in touch with said they are open to keeping the financial information transparent throughout the design and construction process.   The old middle school building would be updated to house city services and the library, though the design and floor plans might need to change.  To maximize the historic tax credit, the developer might not be able to completely gut the interior, Reny said. There are stricter rules, and certain walls and windows might have to stay.  The developer could draw upon the previously proposed concept plan as a jumping off point and consider other ways to make the most of usable space. For instance, some developers proposed different ideas for additions.  “The sky’s the limit,” Reny said.  Advertisement  The city would also consider incorporating compatible commercial uses into the leftover space. “I don’t think we’d see a nail salon,” Clark said.   One of the developers proposed a childcare center, according to Councilor Natalie West. Another proposed a private gym. A theater company could lease the auditorium space.  “The important thing is trying to take as much of the cost off of the shoulders of the taxpayers as we can and to be as creative as we can,” she said. Copy the Story Link Tagged: [infrastructure](https://www.pressherald.com/tag/infrastructure/), [South Portland](https://www.pressherald.com/tag/south-portland/) [](https://www.pressherald.com/author/dana-richie) [Dana RichieStaff Writer](https://www.pressherald.com/author/dana-richie) Dana Richie is a community reporter covering South Portland and Cape Elizabeth. Originally from Atlanta, she fell in love with the landscape and quirks of coastal New England while completing her undergraduate. [More by Dana Richie](https://www.pressherald.com/author/dana-richie)