| A Developer Helping Maine Restore Downtowns Starts
with Augusta’s Arsenal
by Ramona du
Houx
Maine is a
visual delight, not only with our forest wilderness, mountains and seascapes, but also
because of our historic buildings. Vast landscapes and towns across America have been
bulldozed in the belief that modern development and big-box stores were what people
wanted. Some of these developers put profits before intrinsic community values. There is
another type of developer, one that looks to see the historic value in a building and how
that can revitalize and rejuvenate communities.
Tom Niemann of
Niemann Capital, LLC of Durham NC is a successful developer who transformed tobacco mills
in North Carolina into residential buildings, which spurred development into the downtowns
surrounding the mills. After coming to Maine, he became enthusiastic and dedicated to help
the state chart a course for its future historic buildings, so other developers could also
begin renovating Maine’s historic downtowns.
"As soon
as I got here I realized that there are some limitations in Maine’s state historic
tax credit program. So I decided to share my experience in North Carolina and my
experiences that I’d had with other states that have state preservation programs that
don’t have the limitations that the Maine program does," said Niemann.
"Elaine Clark introduced me to everyone and Sen. Libby Mitchell took me to see the
governor. I actually told him that the state has to become more competitive by changing
the historic tax credit program."
During that
meeting the governor made a commitment to work with Niemann, so that more historic
buildings could be preserved in the state.
Because other
states don’t levy a high tax on developers who restore historic buildings, they have
seen a boom in renovation. Amending Maine’s historic tax credit program will level
the playing field. In Rhode Island it is near impossible to find a mill that hasn’t
been renovated, because they don’t have to pay a tax on historic properties.
"I have a
passion to restore historic buildings," said Niemann. "Any historic building is
an asset that is irreplaceable. The Arsenal is a great find and its history
fascinating."
The Arsenal as it
appears today on the banks of the Kennebec river in Augusta
In 1820 a third
war nearly broke out between Maine and Britain. Some farmers from Aroostook County
complained that the British were taking their land, and the British requested troops be
sent to Canada. The John Jay Treaty of 1794 between Britain and America set out border
parameters, but Britain later disagreed with the Jay commission’s official border
designations. This northeast boundary controversy lasted 22 years, during which time the
Kennebec Arsenal was built. The complex is now the most intact early nineteenth-century
munitions depot in the U.S. In late March the Kennebec Arsenal had a new owner —
Niemann Capital. From the beginning Niemann only saw potential in the Arsenal complex,
despite the limitations the historic tax credit posed.
"Over
time, we were able to get more people to help support the project and pretty much created
a pilot program for the governor and the existing leadership in the Legislature that would
work for the Arsenal. That basically has set the stage for the bigger dialogue which
should strengthen the entire historic tax credit program for the state of Maine. As a
result of the credit, the Legislature earmarked for the Arsenal project, we were able to
recruit an equity investor. Having an investor gave the city of Augusta more confidence in
us, and then they stepped up with the tax increment financing district," said
Niemann. "All this has made it more attractive to the banks, and now we can start to
recruit tenants and then begin construction."
"As long
as Tom keeps finding gems like the Arsenal to renovate, I’ll be there backing
him," said Gary Heinz, Niemann’s partner. "Renovating historic properties,
with communities, really is our goal. We did it in North Carolina, and we are thrilled to
have the opportunity to be a part of revitalizing downtowns in Maine."
"City and
state leaders, both in my administration and in the Legislature — along with the
private sector — have all worked together to forge a partnership that has helped make
this project happen," said Governor Baldacci during the transfer deed ceremony.
"The historic Kennebec Arsenal already is one of those places that helps make Maine a
special place. Its renovation will help revitalize Augusta’s downtown."
The
Arsenal’s eight granite block riverfront buildings will be transformed into a vibrant
retail and residential complex with a boutique hotel at the center. Restaurants and cafés
will be a part of the complex. And most of the grounds will be open to the public, like a
park, so residents of Augusta can enjoy the riverfront.
The second
phase of the project will see the construction of new buildings on a hill behind the
arsenal that will be residential.
Baldacci
greets Niemann on the day the ownership of the Arsenal property transferred to Niemann
Capital, thanking him for his dedication to renovating downtowns.
"I want to
recognize this company for the work they have done," said Baldacci, as he presented
Niemann with a golden key to the Arsenal. "Our rivers are the lifeblood of downtowns
across the state. This will have a ripple effect across Maine. It represents an exciting
future for our downtowns."
Niemann is also
renovating the Hathaway factory in Waterville and the Brewer mill, both riverfront
properties.
When the
Brookings Institute Report came out, advising the state about what it needs to become
successful in the global economy and how important revitalizing downtowns are to the
quality of life in Maine, Niemann and others saw that many of the issues in the report
reflected his experiences. "Tom could have written the Brookings Report," said
Sen. Mitchell. "He’s an inspiration for the state. Once the governor met with
Tom, he made sure the Arsenal project happened."
Niemann has
spent the past 41 months working to ensure the state understands how important it is to
renovate historic downtowns by changing Maine’s historic tax credit program. He
regularly testifies at the Capitol. Of course his company is destined to benefit
financially from his work, but that’s not the only reason he’s dedicated himself
to this mission.
"We have a
thriving historic downtown community in NC. We started out with $40 million in investment.
Now there is over $200 million invested in the tobacco mill downtown renovation
project," said Niemann. "That’s from other investors who saw the potential
because we set the ball in motion. I believe the changes we help make in Maine will spur
other likeminded developers to get on board."
"What we are
doing is investing in the future of Maine in the downtown areas. There’s no better
investment," said Tom Niemann ,holding his golden key , standing on the Arsenal
property with partner Gary Hienz.
Niemann is
dedicated to restoring the glory of old buildings, so that downtowns can become enlivened
with people enjoying the community. He goes out of his way to ensure that his buildings
have affordable rents.
"It makes
no sense to renovate a building, forcing local people out of the area because they can no
longer afford the rents," said Niemann. To invigorate downtowns with his
redevelopment projects is all part of how Niemann approaches any project. "It really
is about community."
Pine tree zone
tax credits have helped him move forward in Maine.
"In Maine every one of
your downtowns is special; they still have a lot of historic buildings just waiting to be
renovated," said Niemann.
Baldacci
presented Niemann with a golden key to the Arsenal which surprised the developer and Sen.
Mitchell.
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