Midcoast town may give away some of its land for new homes

Residents of St. George will vote next month on a proposal to give away some town-owned land to a local group that would develop up to seven new homes on it, as part of a larger effort to fight the housing crisis affecting the midcoast and the rest of the state.

A December study by the Midcoast Council of Governments pointed to the scale of the problem, finding that nearly every community in the region lacked affordable housing, with some of the greatest demand in the areas around Brunswick and Rockland.

Now, the skyrocketing cost of renting and owning homes is forcing more municipalities to try to develop additional housing and keep prices down.

St. George, a coastal community populated by both fishermen and wealthier seasonal residents, has owned a 78-acre plot on the northern end of the peninsula since 2002.

In an effort to mitigate some of its housing problems, the Select Board has put forth a measure, called the Kinney Woods Project, which would transfer five of those acres to the St. George Community Development Corp. to develop up to seven new homes.

“We can’t have it both ways — we can’t complain that we don’t want the peninsula to consist of only millionaires and short-term rentals, then oppose a project that would allow a working family a reasonable housing option,” according to a statement the Select Board provided to the PenBay Pilot .

The town is proposing to transfer the parcel rather than selling it to keep the costs of the development down, Town Manager Rick Erb said. He said the nonprofit is in a better position to develop and manage the property.

“The Select Board recognizes what a unique time this is regarding availability of housing for working-class people and the community,” Erb said.

The town-owned land doesn’t currently bring in any property tax revenue, and giving some of it away for housing would also put an estimated $13,986 back on the annual rolls, according to the development corporation.

On its website, the corporation says that it would work to keep the homes relatively affordable and prioritize buyers who are current residents and workers in St. George, first-time home purchasers and contributors to the local economy and schools.

Not all of the land is developable, Erb said, since it contains many wetlands. The St. George Community Development Corp. has pledged not to develop the wetlands.

However, it’s unclear how the town will ultimately vote on the measure during local elections on May 13. Many residents came to a recent public hearing on the measure, delivering comments both for and against it, according to Erb.

If the transfer passes, St. George will join several other midcoast communities that are taking steps to address the region’s growing housing shortage.

Among others, Bath Housing is in the process of building 18 affordable units , and Rockland has been developing ideas for workforce-centered housing . And in March, Gov. Janet Mills announced that a combined 34 new affordable rental units were being developed in Newcastle and Rockport with funding passed by the Legislature.

That’s in addition to 71 other units that were being developed in other parts of the state with that funding, as part of the administration’s goal to build 84,000 homes and rentals in Maine by 2030.