McIntyre building auction surpasses $7.7 million
PORTSMOUTH — The latest high bid for the Thomas J. McIntyre federal building property has come in at more than $7.7 million, according to the General Services Administration, which owns the 80 Daniel St. site.
The bid in the online auction, which was made by a potential buyer whose known only at this point as Bidder No. 4, came in mid-Thursday afternoon. The bid of $7,777,777 surpassed a bid of $7 million from earlier Thursday.
The new bid means the auction being conducted for the property by GSA was set to continue until at least until midday Friday, depending on whether there were any new bids.
Paul Hughes, a regional public affairs officer with the GSA, explained Wednesday that every time a new high bid is made the auction is extended another 24 hours.
It also extends the potential close of the auction for 24 hours, he said.
If the high bid remains unchanged for 24 straight hours, then the auction will end, Hughes said. GSA typically does not name the developers and or companies who are bidding on a property, he said.
If the GSA ultimately accepts a bid, it will release the name of the buyer then, Hughes said this week.
“Once the auction ends, GSA will consider an award to the high bidder; however, GSA has the right to accept or reject any and all bids,” Hughes said.
Flurry of bids this week
The GSA had received just one $5 million bid since the auction started in June — until this week. With the initial auction deadline set for Wednesday morning, a flurry of bids came in, with the latest $7 million bid being the 18th, according to the GSA project website.
The Portsmouth City Council earlier this summer hired a Washington, D.C. law firm in a last-ditch attempt to persuade the GSA to give the 2.1-acre McIntyre property to the city for free.
The City Council has maintained that they should be allowed to acquire the property because of federal legislation in 2004 sponsored by U.S. Sen. Judd
Gregg, R-New Hampshire, that was passed and became law.
But the GSA has consistently disagreed with the city and has continued with the online auction despite the city’s efforts.
The council voted earlier this summer to use the property — which is located in the heart of downtown near Portsmouth’s popular waterfront — for below market-rate housing if the city acquires it.
Portsmouth mayor ‘really frustrated'
Reached Thursday afternoon, Mayor Deaglan McEachern said the $7 million bid is “still significantly less than what they offered to sell it to us for.”
The GSA was asking for between $20 million to $25 million from the city for the property.
The mayor believes recent zoning changes the council approved for larger parcels in the downtown — including the McIntyre — will impact what type of project goes there.
Under the changes, 5% to 10% of any residential units will have to meet the state’s definition of affordable housing. There were previously no requirements, he said.
Plus, the amount of mandated open space has risen from 20% to 50%.
The mayor said he remains “really frustrated by the GSA and their general obstinance in dealing with the city. They refused to meet with us …and I don’t think that’s how the government should operate.
“I’m sad it’s not going to be more affordable units if it’s sold and a bid is accepted,” he said about the potential redevelopment of the property.
“I’d say that for any developer that has the funds to do this, I hope they feel a love and responsibility to Portsmouth, and will deliver something that will make Portsmouth better,” he added. “If that happens, I’d be happy the city doesn’t get the property.”
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.