An $80 million development project of market-rate housing and commercial space at the former Continental Mill building in Lewiston is getting a big boost in the form of a tax reimbursement from the city.
On Sept. 3, the City Council unanimously approved the long-term reimbursement for New Hampshire-based Chinburg Properties, which will help finance the project. The developer plans 377 units of market-rate housing and about 45,000 square feet of commercial space, according to city documents.
The property tax reimbursement will likely amount to about $9 million over the next 23 years. Lincoln Jeffers, the city’s economic and community development director, said the investment will be worth it to ensure the renovation of the 19th-century abandoned mill.
“This has been high on our list of opportunities for Lewiston,” he said.
The mill complex, off Cedar and Oxford Streets, dates back to 1860, but hasn’t operated in decades. Chinburg bought the complex at auction in 2019 and sold off a portion to the Szanton Corporation. That company broke ground in June 2023 on a $14.6 million mixed-use development project that includes affordable housing.
Now, Chinburg is looking to develop the remainder of the old mill building. It will have two parts, with the first 200 units of housing finished by April 2028 and the rest by April 2031.
Jeffers said the project is a big piece of the city’s plans. In 2012, the city created the Riverfront Island Master Plan, which outlines long-term plans to redevelop areas of the city all along the Androscoggin River.
“The Continental Mill was one of the primary pieces of real estate referenced in those plans,” he said.
Jeffers said market-rate rental units, which is what Chinburg is planning, are in high demand.
“We have a need for all sorts of housing,” he said.
Jeffers could not say exactly what Chinburg planned for rents, but said he defined the market rate in Lewiston as roughly $1,600-$1,700 a month for a one-bedroom apartment. For a two-bedroom apartment, he said, rents are about $2,000 to $2,100 a month.
That may seem high, Jeffers said, but it’s competitive with other cities.
“Portland rents are significantly higher than that,” he said. “Whereas market-rate here is still more affordable than other markets.”
Even market-rate units, however, will be unlikely to support an investment in developing the mill building alone, Jeffers said, hence the city’s assistance.
Long-term, Jeffers added, the investment stands to pay off. Right now, he said, the building as it is generates a mere $10,000 in property taxes a year. When the project is finished, and the reimbursement period is over, he said, officials estimate the complex will generate $700,000 in revenue annually.
On top of that, Jeffers said the 377 units of housing being built there will help support restaurants and shops in the area, which will bring even more money to the city.
“We have a historic building that has been sort of mothballed,” he said. “It’s going to be resurrected, brought back to being a signature building in the community. All of that energy down there will then feed up onto Lisbon Street and Lincoln Street.”
