$8.5 million bid for McIntyre building. Portsmouth mayor says GSA isn't budging.

PORTSMOUTH — The developer who made the first bid in the online auction of the Thomas J. McIntyre federal building property, posted a new high bid late Tuesday afternoon of $8.5 million.

Bidder No. 1, whose name has not been released, came in with a bid $450,000 higher than a bid made early Tuesday afternoon by Bidder No. 4 for the 2.1-acre 80 Daniel St. property downtown.

The new high bid extends the deadline for the auction, which is being conducted by the General Services Administration, until about 4 p.m. Wednesday.

Each bid must be at least $50,000 higher than the last, according to the auction's rules.

The GSA owns the federal building property and started the online auction in June.

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There have now been 24 bids made by four bidders since the auction began, with 23 of them posted in the last eight days.

The agency does not name the developers and or companies who are bidding on a property, according to GSA spokesperson Paul Hughes. If the GSA ultimately accepts a high bid, it would then release the name of the buyer.

“However, GSA has the right to accept or reject any and all bids,” Hughes said.

But the auction won’t end, he said, until 24 hours pass without a new high bidder.

Portsmouth still seeking property after failed attempts, even as auction goes on

The city tried for the past several years to secure the McIntyre property for $1 through the government's Historic Monument Program.

GSA dropped Portsmouth from that program earlier this year when the city and its private development partner Redgate/Kane couldn’t agree on a redevelopment plan and subsequently sued each other.

The City Council voted in July to spend $30,000 to hire Washington, D.C. law firm Holland & Knight on a two-month contract to try to help convince the GSA to give the property to the city for free.

The City Council has maintained that they should be allowed to acquire the property because of federal legislation passed in 2004 by former U.S. Sen. Judd Gregg.

But the GSA has consistently disagreed with the city and has continued with the online auction despite the city’s efforts.

Mayor: GSA isn't budging despite efforts by Sen. Shaheen and law firm

During Monday’s City Council meeting, Mayor Deaglan McEachern acknowledged “there’s been no movement from the GSA.” He said U.S. Sen. Jeanne Shaheen, D-New Hampshire, has met with the administrator of the GSA. The mayor has also previously mentioned Shaheen's efforts to support the city's attempt to acquire the property.

But GSA officials “continue to interpret the law in the way that since they did not build a building (at Pease), they will not transfer the (McIntyre) building to us,” McEachern said.

Reached Tuesday afternoon, McEachern said Holland & Knight “weren’t able to have the GSA stop the auction, pretty apparently.”

The two-month contract with the law firm is coming to an end and the council is not extending it, the mayor said.

“It is evident GSA has not changed its mind regardless of the Holland & Knight engagement or the senator’s efforts,” McEachern said.

He added there was no physical report from the law firm.

Gregg’s legislation called for the GSA to turn over the federal building property to the city and build a new office at the Pease International Tradeport.

The GSA bought land at Pease, which it still controls, but never built a new office there.

GSA officials have refused to meet with the mayor, McEachern said.

This article originally appeared on Portsmouth Herald: McIntyre auction stakes rise; Portsmouth mayor says GSA isn't budging