FAIRFIELD — A $6.5 million deal is in the works to redevelop the Gerald Hotel, a vacant historic building on Main Street, in a move that some hope will help breathe new life into a downtown with more vacant storefronts than businesses.

Developers hope to close on the deal to turn the former hotel into residential housing for people 55 and older in early October and begin work by November.

Additional Photos

A $6.5 million deal is in the works to redevelop the Gerald Hotel, a vacant historic building on Main Street in downtown Fairfield. Staff photo

Town Manager Joshua Reny said that the building is critical to the area and the town.

“It really is the flagship building of our downtown, and we’re really hoping that this project is going to be a catalyst for more development or redevelopment,” he said.

The project is being driven by developers Tom McDonald, of the Northern New England Housing Investment Fund, and the Kennebec Valley Community Action Program.

David Gilpatrick, director of energy and housing for the community action program, said that the $6.5 million figure is the estimated total amount to buy and develop the building.

Kitchens and bathrooms have to be installed for 28 one-bedroom units and two two-bedroom units, but the building’s historic features must be maintained while that’s done.

When the building is completed, part of the ground floor will be leased by the community action program, said Gilpatrick. It will be used to process applications for a heating oil assistance program administered by the group, and also have some other functions that haven’t been determined yet, he said.

The Gerald Hotel is one of six vacant storefronts on the block of what was once a bustling downtown. It was most recently the home of the Northern Mattress and Furniture Gallery, which relocated to Waterville in 2006.

In 2007, Maine Preservation listed the building as one of the state’s most endangered historic properties.

The hotel was constructed in 1900 by Amos F. Gerald, who built the state’s first electric train system and the first electric light plant. It was an ornate building, with terra cotta trimmings and figures in relief in the Renaissance style, according to a publication by the Fairfield Historical Society. It stopped operating as a hotel in 1937.

The only storefront businesses remaining on the block are Sonny’s Pizza, the Kennebec Cafe, Batey’s TV and Joseph’s Sporting Goods. The sporting goods store has announced plans to move to Waterville, which will leave another vacancy.

Cheryl Walker, who has owned Sonny’s Pizza for 42 years, said that she used to draw business from the customers and employees of the mattress store. Recently she has come to rely more heavily on people from other towns stopping as they pass through.

“I can’t wait for them to start,” she said. “I’m anxious. I look out there every day. The builders have to eat somewhere. I hope to share in that.”

She also said that she is willing to tweak the menu to accommodate the tastes of the building’s new residents.

Reny said that the developers have been working for years to line up historic tax credits, affordable housing tax credits and a tax increment finance zone to help make the deal happen. The finance zone, known as a TIF, helps pay for development by returning property taxes to developers in the zone for a limited period of time that would otherwise be diverted to the state.

Gilpatrick said that if the sale is finalized in October as planned, it would be ready to rent sometime next summer.

Matt Hongoltz-Hetling — 861-9287

mhhetling@centralmaine.com

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