The big lie about "affordable housing" in Cape Elizabeth, Maine.

I was in the room when lawmakers were convinced by slick lobbyists that the State of Maine had to accept ownership of the Dolby Landfill — a toxic waste dump located in East Millinocket — as a “gift” from Brookfield Asset Management in order to “save jobs.” The concerns I raised then were met with the same accusations of snobbery I’m fielding now for questioning the construction of a so-called “affordable housing” project tailor-made for Wall Street on the main street of Cape Elizabeth where I own a mixed-use building and live with my family.

Long story short about the Dolby Landfill — the Chinese investment firm that bought the mill skipped town, the jobs were lost and the public is left holding the bag.

Fast forward to “Dunham Court,” another Wall Street heist dressed-up as a progressive cause. This time it’s the housing crisis we’re being told we can and must fix by constructing a privately owned but taxpayer-funded 49-unit behemoth that violates four zoning ordinances on two commercial lots located on the town green that were recently approved as part of a village-style subdivision.

What makes Dunham Court “affordable” housing, according to the developers seeking tax increment financing as well as publicly backed loans, is that 39 of the units will be required to be rented to households whose annual income does not exceed $42,000, or 60% of Portland’s median income.

Why are we using City of Portland numbers for a Cape Elizabeth project?

Because that’s the only way the developers can qualify for the federal low income tax credits they will trade or sell on Wall Street.

Why do four zoning laws have to be ignored — more than doubling the density, increasing the height, expanding the footprint and not requirIng commercial activity on the first floor of buildings directly on our town square? Because that’s what’s needed to make the project “feasible,” a term the meaning of which the Town Council has no idea.

The median household income in Cumberland County is $73,072 and the median income in Cape Elizabeth is $123,116.

“Affordable housing” in Cape Elizabeth’s Comprehensive Plan is defined as “a decent, safe and sanitary dwelling, apartment or other living accommodations for a household whose income does not exceed 80% of the median income for the region (Cumberland county).”

The first point is that there is no guaranty any of these units will go to people who are deserving of public assistance. There are two types of “low income” people. One type is impoverished and needs help and the other type sits on huge assets and works intentionally to show no income on their tax return.

And how do we know what the tax credits from this no-risk, high reward real estate investment in one of Maine’s most affluent communities will fetch on the open market?

“The developers say so,” is the answer, apparently.

Because the developers produced a slide as part of a glossy Power Point sales job that says without explanation they will raise 28% of the total cost of the project selling the federal tax credits we are supposed to say, “thank you for the opportunity?”

What if the tax credits sell for $25,000,000 on Wall Street instead of the $3.5 M price tag a consultant put on the slide as the most winning projection?

The extra cash won’t go to reduce the tax burden in town but instead will be used to pay down the corporate mortgage that also will be securitized on Wall Street, thereby reducing the developers debt while their real estate appreciates over 30 years property tax-free.

And how many consultants will the taxpayers fund over 30 years, the “costs” of which will be deducted by the developers using some contortion of the tax code to make more money.

Why is this in the public interest?

It will help the “workforce” afford to live in town, according to the developers and public housing “experts.”

Who is the workforce in Cape Elizabeth — where less than 4% of people live in poverty and over 90% own their own homes and work outside of town?

Public school teachers and police officers and fire fighters and the good people who take care of Fort Williams and clean the streets before and after the Beach to Beacon road race are our workforce. The nice ladies in Town Hall who probably make less than $20 per hour and will have to process all the additional paperwork associated with this Wall Street carnival.

The Town of Cape Elizabeth is its biggest employer and the Cape Elizabeth Comprehensive Plan — based on our community needs and numbers — codified two affordable housing goals: (1) The town should promote a diversity of housing types to accommodate residents of all age groups and household sizes, and (2) The town should increase the amount of affordable housing through methods that minimize administrative burdens on town administration.

Instead of following our locally crafted plan to achieve affordable housing and simply paying public employees higher wages or offering low interest loans to get into the sizzling hot real estate market that is a ladder to lifelong economic security, the developers want us to engage in the complex, opaque bureaucratic gymnastics demanded by a TIF that will tie up prized commercial property in the middle of our beautiful town for 30 years because this will be less administrative burden on the town?

And at what cost? How is the project “affordable” when we have no idea what the price tag will be compared to the profit margin the developers are guaranteed to reap? On top of the TIF, the publicly backed loans and sale of the tax credits, the developers will make how much more money under the exclusive contract it will have to manage the project for 30 years? And they get the property! Including the town skating rink they intend to pave for all the extra parking.

How does this make sense for anyone except the developers?

How can we do a cost-benefit analysis to assess whether the project is in the public interest when the costs of the increased public safety, sewer, water and education that taxpayers other than the developers will be forced to absorb are unknown?

How many commissions, brokerage fees, and lunches between investment bankers will be created by the bundling of all the debt and the churning of all the tax credits? Is this really the best and highest use of tax dollars?

What is the carbon footprint of the project?

The real estate in question was recently approved as a village-style commercial subdivision including 12 market rate rental apartments but instead “Dunham Court” will pay 65% less in property tax for 30 years — despite the fact that 20% of the units will be rented at market rate.

If 39 of the new units must be rented to people who make less than 60% of Portland’s median income, then 39 of the units will likely be rented to households who are eligible for public assistance like Mainecare, Maine’s Medicaid program. There is no public transportation, no post office or bank in town. There are very few jobs and no social services to speak of — in fact the dentist selling the commercial real estate to the developers is building himself a new office next door and does not accept Mainecare.

Another argument being marketed by the developers and some proponents of the project is that it will bring “economic vitality” to the Town Center. Seriously? Other than a fabulous IGA that sells Boarshead deli meat at a premium, a fine selection of wine and the New York Times, there’s a gourmet market, CVS, a dry cleaner and nail spa in town. Which local business will see increased traffic thanks to the project?

The need for “affordable” housing in Cape Elizabeth is real for dedicated public employees who work here and the need for “diversity” of housing types is also real for transitioning families. There are better, smarter ways to meet the needs while improving the economic security of our families than selling out to Wall Street bond holders and investors who do not always make the best neighbors.

The citizens of Cape Elizabeth and the workforce who serve us deserve better than Dunham Court. It’s a fake Wall Street “fix” to an exaggerated local problem. Let’s not be fooled by another woke “gift.”