Time running short on Portsmouth's attempt to acquire McIntyre as GSA auction nears end

PORTSMOUTH — People hoping to hear good news Monday night about the city’s long pursuit of the Thomas J. McIntyre federal building likely left disappointed.

Instead, Mayor Deaglan McEachern acknowledged the General Services Administration, which owns the 2.1-acre downtown property, has not changed its position.

“GSA has not moved thus far from their belief that because they did not build (a new building at Pease) they’re not required to transfer the building,” McEachern said. He provided a brief update on the city’s efforts to acquire the property for free from the GSA and transform it into below-market-rate housing.

McEachern’s comments came after he and the council met in non-public session earlier to discuss the efforts by Holland and Knight, a Washington, D.C.-based law firm the city hired in an attempt to persuade GSA to turn over the property.

Lawyers for the firm contended before they were hired on a two-month contract that federal legislation passed by former U.S. Sen. Judd Gregg in 2004 was still in effect, and the GSA is compelled to turn the site over to the city for free.

Mayor urges: 'Deliver the building'

McEachern repeated city leaders believe “that they’re (the GSA) not using the building anymore and that satisfies the requirements and so they should deliver the building.”

The legislation required the GSA to move into a new building at Pease and give the McIntyre property — which is at 80 Daniel St. — to Portsmouth.

The GSA bought property at the Pease International Tradeport, but never built a new building there, and the land remains unused.

“We’ll looking for a clear answer from the GSA definitively from the top what their position on that is,” McEachern said during Monday’s council meeting.

McEachern reported representatives from the office of Sen. Jeanne Shaheen, D-New Hampshire, have had “numerous conversations to date with GSA representatives” about the 2004 legislation as a way to “deliver us the building.”

End of McIntyre online auction coming

The mayor acknowledged “we have pretty much until next week,” when the GSA has set a soft close date on its online auction sale of the property, slated for Wednesday, Sept. 27.

There has been a single $5 million bid so far for the property, according to the GSA's online auction page, as of Tuesday mid-afternoon.

McEachern said Portsmouth is at “a crisis level when it comes to affordability of our city, to be able to have just the staff to run the places that we know and love.”

He pointed specifically to the recent closing of Colby’s Breakfast & Lunch restaurant, saying “they couldn’t find staff.”

He implored GSA officials to “reflect on that when they do have the opportunity … to say yes we can transfer this, we appreciate the vote that you took to dedicate this to affordable housing, and make that the new mission of this building.”

He added that if needed the City Council could hold another meeting before the auction's projected soft closing date.

No one else from the council spoke about the issue or asked any questions Monday after McEachern finished his update.

GSA official says auction is moving ahead

Paul Hughes, spokesperson for GSA’s New England region, said “GSA has not changed its plans and is selling the property via online auction.”

“A soft close has been set for September 27, 2023. Interested parties are encouraged to review due diligence materials, including the Invitation for Bids, available on realestatesales.gov," Hughes said in a prepared response Wednesday to questions about the sale process in light of McEachern’s comments.

Previous to putting the McIntyre property up for sale, GSA told city officials it was seeking $20 million to $25 million for the property.

Asked if the agency would go through with the sale with a high bid of $5 million — which is what the auction has received so far — Hughes responded, “At the close of the auction, the high bid will be considered for acceptance by the government. The government reserves the right to accept or reject any or all bids."

At a crossroads

Former city councilor Peter Whelan, who is running for election again this year, told McEachern Monday night he was hoping for “good news” from the McIntyre update.

“It seems to me we’re at a crossroads here where either our legal partners in Washington are going to try to stop the sale or you’re just going to let it go,” Whelan said during the public comment portion of the meeting.

He noted too that “we have a congressional delegation who certainly is more powerful than any K street lobbyist,” he said, and mentioned Shaheen, along with Sen. Maggie Hassan and Rep. Chris Pappas.

“They should be here, they should be advocating, we should have a war room,” said Whelan, who chaired the former McIntyre Subcommittee when he was on the council. “This building and property is a 100-year project for the citizens and residents of Portsmouth. It’s our most valuable piece of property in the city, and probably in the state,” Whelan said.

“The silence is deafening on McIntyre, deafening and everyone knows it,” he added.

Reached Tuesday, Whelan acknowledged there was “no positive news” from McEachern’s update.

“I don’t know what our congressional delegation is doing. Why weren’t they at the meeting?” Whelan said. “It doesn’t seem like the GSA is going to move on this at all.”

He said he was not optimistic the city will be able to acquire the property as the end of the online sale approaches.

“The tragedy of all of this is it’s the most valuable piece of property in the state and at least part of it was taken by eminent domain,” Whelan said. “This property belongs to the residents of Portsmouth.”

He called it “very disheartening” councilors didn’t even ask questions after the McIntyre update.

“This should be priority number one for the council. This is a once-in-a lifetime deal,” Whelan said.

The city tried for the past several years to secure the 2.1-acre 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.

This article originally appeared on Portsmouth Herald: Portsmouth's attempt to acquire McIntyre clashes with GSA auction