Portsmouth revives effort to obtain McIntyre building. DC law firm hired.

PORTSMOUTH — The City Council voted 7-2 to seek the acquisition of the Thomas J. McIntyre federal building property for free based on federal legislation passed in 2004.

The motion made by City Councilor John Tabor also called for the city to hire Washington, D.C. law firm Holland & Knight to help Portsmouth secure the 2.1-acre Daniel Street property “for public use.”

Councilors Josh Denton and Andrew Bagley cast the two no votes, while Mayor Deaglan McEachern, Assistant Mayor Joanna Kelley and City Councilors Tabor, Beth Moreau, Vince Lombardi, Rich Blalock and Kate Cook voted for it.

The vote came Monday night at a special City Council meeting, where a group of residents often applauded when councilors announced they would be supporting the initiative.

The work proposed by Holland & Knight calls for a two-month contract for $30,000.

The law firm plans to “engage with GSA to seek the termination or pause of the current auction of the McIntyre building, given GSA is subject to a legal requirement to convey the building to the city of Portsmouth,” the law firm stated to the city.

“At the same time, we will engage with the New Hampshire delegation and the key authorizing and appropriations committees to communicate the clear Congressional intent of Section 408 of the (former Sen. Judd Gregg legislation) to GSA to convey the McIntyre Building to the City of Portsmouth without compensation for economic development purposes.”

The law firm will also “work with the city of Portsmouth to ensure that a comprehensive plan is developed … for the economic development purposes the city plans to use the McIntyre building,” the law firm stated.

The law firm stressed the city should have a municipal purpose for the property, and not engage with private developers, according to officials.

City officials voted to try to secure the property from the GSA after former deputy city manager Ted Jankowski hired the law firm on his own to evaluate the status of the legislation in June.

Making the case former Sen. Gregg's legislation is still valid

In a letter the law firm sent to Jankowski — which he shared with the city — Holland & Knight contends Gregg’s legislation is still valid and the GSA — which owns the property — is still compelled to turn it over to the city.

During Monday’s special meeting, Tabor said the city has an opportunity to get the McIntyre property for free, which would give the city “more land for long-term municipal use.”

“It’s an opportunity, but only if we act,” Tabor said, while noting the property is currently “dead, as dead as a doornail.”

Mayor says property must benefit all Portsmouth residents

McEachern acknowledged “we do have to have a plan” for how the property would be used by the city in order to be successful in obtaining it from the GSA.

He pointed to the need for more “municipal facilities” and mentioned potential uses like moving City Hall there, creating work-force housing and returning the post office to the downtown site.

“We have an opportunity ... to see whether or not we can acquire this building for things that will benefit all of our residents,” McEachern said.

Differing views among city councilors

Denton, who cast one of the two no votes, said the time to hire outside attorneys was 20 years ago when Gregg’s legislation passed.

He said if Portsmouth obtains the McIntyre property, money the city would have to spend on it would impact other city projects.

Blalock acknowledged the cost of hiring Holland & Knight but stated he thought it was important “to explore all options.”

The property could potentially be used for a police station, parking or work-force housing, Blalock said.

“It’s very clear we need more space, and this space is very valuable,” he said.

Bagley pointed to the millions of dollars already spent by the city on the McIntyre and how it’s “been a source of division” in Portsmouth.

“We must ask ourselves what might we have achieved with these resources,” he said.

Kelley said her “biggest takeaway” is “we have a chance we haven’t really had before.”

“We cannot afford to not try this,” she said.

Moreau said Portsmouth could “possibly put work-force housing there.” She also appreciated the agreement with Holland & Knight is initially only two months.

Still no new building at Pease

Gregg’s legislation called for the GSA to use money provided to it to build a new facility at the Pease International Tradeport, and then turn the McIntyre property over to the city for free.

GSA bought property at Pease — which it still owns — but never built a new building.

The city tried for the past several years to secure the 2.1-acre McIntyre property, which is located in downtown Portsmouth near the city’s waterfront, through the federal Historic Monument Program for $1.

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 filed lawsuits against each other.

More: Redgate/Kane seeks '8 figures' from Portsmouth in McIntyre lawsuit. City attorney reacts.

'A unicorn opportunity' for Portsmouth?

City resident Bill Downey, an early and frequent opponent to the redevelopment plans the city proposed with Redgate/Kane, called the potential acquisition of the property “a unicorn opportunity.”

“Let’s explore what we have before us,” he said. “This is an amazing opportunity.”

“To not explore this would be a grave mistake,” he said.

Former City Councilor Peter Whelan called the opportunity “a no-brainer” and noted that the city has already spent $4 million on McIntyre.

“This is a chance to get this building,” he added.

Whelan also urged the city to get the state’s congressional delegation involved.

“GSA owes us something here,” he said.

City Manager Karen Conard said the parking revenues the city is bringing in right now from parking spots on the property are paying for maintenance at the site.

This article originally appeared on Portsmouth Herald: Portsmouth NH hires DC law firm in latest bid to obtain McIntyre