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By AMY CALDER
Staff Writer 12/19/2007

The city recently sold the building to Rhode Island developer Paul Boghossian and his partner, Thomas Niemann, who plan to turn it into a commercial, retail, office and residential center.

City Manager Michael Roy told councilors Tuesday night that annual testing on the tank, believed to hold 10,000 gallons of fuel, revealed that a leak in the outer wall of the double-walled tank allowed water to seep between the walls.

He said the developers knew the tank was being tested but neither city officials nor the developer knew there was a problem with it until after the building was sold.

"Is it a serious defect?" Councilor Dana W. Sennett, D-Ward 4, asked Roy.

"It's a fatal defect," Roy replied.

Council Chairman Donald N. Dufour, D-Ward 5, said he thought the developers should shoulder the cost for repair or replacement.

"My opinion would be that it's theirs," he said.

Mayor Paul R. LePage agreed.

"I've bought bad tanks many times," he said. "Sometimes we've known (about a defect) and sometimes we haven't."

Roy initially said the tank would have to be removed but LePage said he believed there is new technology available to repair double-walled tanks in the ground. He estimated replacement of such a tank at $30,000.

"We'll attempt to resolve that, and I'm sure you'll hear more about it," Roy said.

In other Hathaway related issues, Roy said he and City Engineer Gregory Brown would review correspondence, including e-mails, about the tank issue and City Solicitor William Lee would be consulted in the matter.

Roy said an official groundbreaking celebration for the Hathaway project is tentatively scheduled for January 10.

Roy also said he is hoping the Department of Transportation early next year will release a $20,000 grant awarded to Waterville for a study on a pedestrian connector proposed to be built between Hathaway and downtown. The city agreed to pitch in $5,000 for the study.

The city's Public Works Department has been busy removing items stored at the Hathaway building for the seven years the city has owned it, according to Roy. Many unclaimed bicycles the Police Department had stored there were removed and most were in poor shape and taken to the recycling center.

"We've been holding on to them for 20 years," Roy said. "That's no exaggeration. They've never been claimed."

In other matters Tuesday, councilors voted to award a $211,424 contract to O'Connor GMC Pontiac Buick, of Augusta, for two new trucks for plowing and summer construction.

Roy reported that the state pulled back a $213,000 grant awarded to the city for repairing the historic Two Cent Bridge.

"That $213,000 was lost as a result of cuts at DOT," Roy said. "There's a chance the money will be put back in."

LePage asked how committed funds can be taken back by the state.

"Did they tell you where that money went?" LePage asked.

"No," Roy replied.

Councilors thanked Dufour, who was attending his last council meeting Tuesday, for service to his ward and the city. Dufour was elected to the Board of Education in November and is scheduled to take that seat in January.

Amy Calder -- 861-9247

acalder@centralmaine.com

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