pmc prospectus

BUSINESS PROSPECTUS & PROJECT OVERVIEW

2 Main St Suite 301-E Biddeford, ME 04005 T 207.282.5577 F 207.283.9135 PepperellMillCampus.com

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TABLE OF CONTENTS...........................................................................................................Mission Statement 4

....................................................................................................................Locator Map 5..................................................................................................................Campus Map 6

....................................................................................................Mill History (1840-2009) 7....................................................................Chronological Project Overview to Date 8

...........................................................................................................Location Viability 11.....................................................................................................Area Demographics 12

........................................................................................General Building Conditions 13...........................................................Specifications and Uses of Campus Buildings 15

......................................................................................................Stacking Plan 16 ............................................................................................................. Building 9 18........................................................................................................... Building 10 19........................................................................................................... Building 11 20........................................................................................................... Building 12 21........................................................................................................... Building 13 22

...................................................................................................... Building 13-W 23........................................................................................................... Building 15 24........................................................................................................... Building 16 25........................................................................................................... Building 17 26........................................................................................................... Building 18 27........................................................................................................... Building 19 28........................................................................................................... Building 20 29........................................................................................................... Building 30 30........................................................................................................... Building 35 31........................................................................................................... Building 36 32........................................................................................................... Building 37 33...........................................................................................................Planned Projects 35

................................................................................................ Pepperell Center 36..................................................................................... Building 35 Apartments 37

............................................................................... Laconia House Residences 38......................................................................... Building 20 Restaurant & Hotel 39

...................................................................................................... Textile Center 40.................................................................................... Counting House Offices 41

.................................................................................................. Parking Garage 42............................................................................................................. RiverWalk 43

.......................................................................Job Creation and Community Benefit 44......................................................................................................Development Team 45

...............................................................................................Development Summary 46


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MISSION STATEMENT

To revive the active use of the mill through responsible redevelopment

To provide cost effective and efficient commercial space to the business community

To be a model for the future of urban development and Smart Growth

To provide historically responsible building construction

To consume energy efficiently

To revitalize the downtown economy and local culture by following through on a quality mixed use redevelopment plan


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LOCATOR MAP


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The Pepperell Mill Campus is located at 2 Main Street in Biddeford, Maine.

90 Miles North of Boston

35 Miles North of Portsmouth

55 Miles North of Newburyport

15 Miles South of Portland

1,200 feet from Saco Transportation Center (Amtrak stop)

CAMPUS MAP


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MILL HISTORY(1840-2009)

A century ago, the Pepperell Manufacturing Companys mills were the nerve center of the Biddeford/Saco area. The local economy thrived as Pepperell employed approximately 10,000 people, and Biddeford became known around the world as a leading center of industrial progress and innovation.

In 1840, the complex began expanding, and grew to over 5 million square feet by 1900.

Early in the 20th century, electricity arrived at the mill complex and textile production shifted towards the south, as the south was the source of the raw material, cotton.

This shift led to a decline in the Mills profitability, and prompted the companys executives to begin searching for a new product to manufacture.

In 1966, the Vellux blanket went into production at the mill. With great success, production topped 6,000,000 blankets annually and continued until 2008.

Labor outsourcing to other countries caused the mill owners decision to stop production in 2008, and in 2009 the mill was put up for sale.


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CHRONOLOGICAL PROJECT OVERVIEW TO DATE

2004: North Dam Mill PurchaseDoug Sanford acquired the North Dam Mill in April of 2004 from Sunbeam Textile Company. The mill had been vacant since Sunbeam shut down in 2003. The plan for The North Dam Mill was to create a community of businesses and residents, with the intent of making a mini-city of intertwined work-live space.

2004-2006: North Dam Mill RenovationBuildings 17 and 18 of the North Dam Mill were retrofitted into financially sustainable entities.

A brief outline of work includes:

1. Interior demolition to create leasable commercial space in Buildings 17 & 18.

2. Infrastructure improvements were made for code conformance to the buildings.

3. Partition walls, flooring and ceiling work to create vanilla envelope space, ready for tenant build out.

4. Common areas were created for tenant and patron access.

5. Interior specific build outs were completed for several anchor commercial tenants.

2006-2007: First Commercial Tenants Move In Many businesses moved in around March of 2006, and more soon followed, including artists, small retail, restaurants, light industrial users and an auction hall. A balanced mix of some 70 different businesses created a vibrant community, with floor spaces varying between 250 SF and 7,000 SF.

2008: Construction of Residential ApartmentsMajor common infrastructure renovations to Building 18 were completed to accommodate the residential development of the upper three floors. The completion of the first two floors for commercial tenants created enough cash flow to allow for the project to procure financing and proceed with the construction of the residential portion of Building 18.

An outline of the work included:

1. Installation of elevators, stairs, bridges, entrances and walkways.


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2. Construction of a new parking lot, and improvement of the traffic flow with a new entrance driveway.

3. Construction of a new formal common-entrance vestibule.

4. The complete buildout of 44 residential apartments on floors 3 and 4.

5. Construction of 11 luxury residential apartments on floor 5.

2008: Residential Apartments OccupiedThe residential units opened on September 1st, 2008 on the 3rd and 4th floors of Building 18, and achieved 100% occupancy. The apartments on the 5th floor opened on November 1st of the same year, and were fully occupied shortly after. The residential units range in size from 500 SF to 1,800 SF (studios, 1-bedroom, 2-bedroom apartments and luxury loft apartments), and have maintained 100% occupancy since completion. The direction of the North Dam Mill has created an eclectic community of businesses and residents that are assisting in the revival of the downtown economy.

2010: Purchase of WestPoint Stevens Property - The Pepperell Mill Campus is BornWestPoint Stevens stopped all operations at the Biddeford mill in 2009 and put the complex up for sale. In 2010, Doug Sanford completed the purchase of the WestPoint Stevens property, and the Pepperell Mill Campus was founded. The newly purchased parcel and buildings are adjacent to the North Dam Mill. Combined together, 17 acres and 16 buildings create the Pepperell Mill Campus.

2011: Building 9 Commercial WorkBuilding 9, now known as the Spencer Building, was prepared for office tenant build out. Spurwink Services and York County Community Action Corporation (YCCAC) were the first tenants to move in on the second floor.

2012: Pepperell Mill Campus & North Dam Mill Growth Continued April: State of Maine moves into the first floor of Building 9, leasing 5,900 square feet of space for a 10 year period. September: Saco River Dyehouse leased 18,500 square feet Building 13-W for a length of 5 years. October: 5,000 square feet of Building 37 was constructed for the leasee Motorland Vintage America / Past & Present Auto Repair. November: 26 new apartments were completed in Building 17 of the North Dam Mill. 90% of the apartments were preleased prior to construction completion.


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RiverWalk: Phase one of the RiverWalk project was completed at the North Dam Mill entrance off of Main Street. This phase included the construction of a scenic overlook on the Saco River, as well as cobblestone pathways, new greenery, and landscaping. Thanks to mutual public/private cooperation, a second easement was granted to the City of Biddeford in order to start phase two of the RiverWalk. Phase two will include a path from the scenic overlook to connect to a new pedestrian bridge over the Saco River. The new bridge will be completed in early 2014 as a result of funding secured from the Maine Department of Transportation. The bridge will connect the two mill districts and the downtowns of Biddeford and Saco. MERC Closure: Maine Energy Recovery Company was purchased by the City of Biddeford in late 2012 and decommissioned by the end of the year. The former trash-to-energy plant was completely demolished in the late summer of 2013. The closure of MERC has proven a strong catalyst to the continuing revival of the mill district and downtown.

2013: Restaurant & Hotel Plans Announced, Building 13 Pepperell Center Opening and Building 35 Apartments March: Announced proposed hotel and restaurant plans for Building 20. The project calls for a 40-room boutique hotel and a 180-seat upscale restaurant. Project planning approvals are due by the end of the year. May: Banded Horn Brewery signed a long term lease for 5,000 square feet in Building 13-W. The completion date of the custom built out brewery space is September of 2013. August: Commencement of Building 13 storefront transformation into the new Pepperell Center. The project is scheduled for completion by the end of 2013. The planned restoration will be the new gateway entrance to 160,000 square feet of mixed use commercial space. November: The construction of 19 new apartment units is scheduled to commence, with completion estimated to be spring 2014. The new Building 35 apartments will be the Campus premier residential location with decks overlooking the Saco River falls. The design calls for seven 1-bedroom, two 2-bedrooms, and ten loft apartments.


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LOCATION VIABILITY

As the costs of living in Portland and Portsmouth increase, the Biddeford/Saco area evolves into a prime position for growth. Positioned on the I-95 corridor, the advantages of the Mills Biddeford location are numerous, and include:

The campus is two miles from two I-95 exits

The Amtrak station is located within walking distance to the mill, providing excellent commuter service to Boston and the Northeast Corridor.

The Atlantic Ocean is directly accessible via the Saco River

The mill is serviced by three separate sources of high-speed fiber optics.

The complex is 15 miles South of Portland, 40 miles North of Portsmouth, and 90 miles North of Boston

The campus is located in the center of York county, the fastest growing county in the state of Maine


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AREA DEMOGRAPHICS

Demographics of Biddeford/Saco (as of 2010)

Population: 39,759

Average household: 2.44 persons

Median Home Value: $225,457

Biddeford Unemployment: 7.6% (02/2012)

Saco Unemployment 7.1% (02/2012)

Median Household Income: $48,093

2nd largest municipality (combined) in Maine

Demographics of York County (as of 2010)

Population: 197,131

Growth since 1990: 19.1%

Unemployment: 5.8% (09/2012)

Labor force: 112,803 (09/2012)

Local Assets:

According to a study by the Brookings Institute, York County is the fastest

growing county in Maine, and its growth is projected to continue at the highest

rate in the state over the next 30 years.

Biddeford has a rich history built from the success of its industrial mills. The mills

again provide Biddeford with a unique asset. A growing higher education

presence with the University of New England and other local community

colleges brings innovation and positive energy to the area. Additionally,

Southern Maine Medical Center is a huge asset to the local economy. The

possibilities for development in this community are exciting. The probability of

strong economic growth is certain.


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GENERAL BUILDING CONDITIONS

Most of the interior space at the Pepperell Mill Campus can be classified as

shell complete, ready for interior fit-up. The building shells are entirely intact

and enclosed, base mechanical and electrical systems are in place and the

buildings are ready for the placement of interior partition walls. It is rare that any

comparable mill complex can make this claim. The reason is that all interior

spaces have always been occupied, heated, fire-sprinkled, and electrically

powered. The previous owner maintained the plant responsibly and spent the

necessary capital to do so. A short outline of the current status of each building

follows:

1. Site conditions: Grounds surrounding buildings are clean, properly drained and well-maintained.

a. Hazardous waste issues are at a minimum. All subsurface areas have been surveyed and logged by certified environmental agencies. The project is enrolled in the VRAP program through the State of Maine DEP.

2. Foundations: Structural granite pinned to ledge, in excellent condition.

3. Masonry: Brick walls are running bond systems averaging 24 inches thick. Face bricks on interiors and exteriors are in excellent condition. It is estimated that approximately 55,000,000 bricks were used to construct the mill complex.

4. Roof decks, floor systems and columns are all intact and in no need of structural repair. All roofs have been maintained, thus no structural rotting has occurred.

5. Roof conditions: 90% of all roofs on the property are new rubber membrane, and installed within the last 10 years.

6. Windows: 80% of all windows will be replaced in order to achieve high energy efficiency ratings.

7. Elevators: high-capacity elevators are in place to access all commercial uses. New passenger elevators are scheduled, utilizing existing elevator shaft ways.

8. Plumbing: large volume water feeds and sewer piping is in place, and ready for any custom interior additions.

9. Fire sprinkler: a comprehensive fire sprinkler system is in place currently, and is inspected monthly to satisfy insurance and local fire ordinances. Three redundant water feeds to the mill are in place, accompanied by three sources of redundant power for water pump reliability.

10.Electrical: high capacity 480 volt, 3-phase service is in place and fed to subpanels on all floors of all buildings.


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1618192021222324252627282930313233

Stacking Plan...............................................................................Building 9.....................................................................................Building 10...................................................................................Building 11...................................................................................Building 12...................................................................................Building 13...................................................................................Building 13-W...............................................................................Building 15...................................................................................Building 16...................................................................................Building 17...................................................................................Building 18...................................................................................Building 19...................................................................................Building 20...................................................................................Building 30...................................................................................Building 35...................................................................................Building 36...................................................................................Building 37...................................................................................

SPECIFICATIONS AND USESOF CAMPUS BUILDINGS


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FLOOR BY FLOOR STACKING PLAN

BLDG%#'Floor Predicted%or%Current%Use

Square%Footage%Per%

Floor(Approximate)

%%of%Occupancy

Total%BLDG%Sq/Ft

9'0 Commercial:%Storage/Garage 12,901%Sq/M '

51,6049'1 Commercial:%Oce 12,901%Sq/M 50%

51,6049'2 Commercial:%Oce 12,901%Sq/M 70%

51,604

9'3 Commercial:%Oce 12,901%Sq/M -

51,604

10'1 Commercial:%Light%Industrial/Light%Manufacturing 29,825%Sq/M -59,650

10'2 Commercial:%Light%Industrial/Light%Manufacturing 29,825%Sq/M -59,650

11'1 ResidenXal%or%Commercial 16,104%Sq/M -48,31211'2 ResidenXal%or%Commercial 16,104%Sq/M - 48,312

11'3 ResidenXal%or%Commercial 16,104%Sq/M -48,312


43,13612'2 Commercial:%Oce 10,784%Sq/M -

43,13612'3 Commercial:%Oce 10,784%Sq/M -

43,136


43,136

13'1 Commercial:%Mixed%use%Oce,%rec.,%event,%educaXon

68,040%Sq/M -136,080

13'2 Commercial:%Mixed%use%Oce,%rec.,%event,%educaXon

68,040%Sq/M'

136,080

13w'1 Commercial:%TexXle%Hub 25,527%Sq/M 71%51,054

13w'2 Commercial:%TexXle%Hub 25,527%Sq/M -51,054

15'1 Commercial:%Light%Manufacturing 19,400%Sq/M 100%

97,000

15'2 Commercial:%Light%Manufacturing 19,400%Sq/M 100%97,00015'3 Commercial:%Light%Manufacturing 19,400%Sq/M 10% 97,000

15'4 ResidenXal:%20%Units 19,400%Sq/M -97,000

15'5 ResidenXal:%20%Units 19,400%Sq/M -

97,000

16'1 Commercial 17,283%Sq/M -

69,13216'2 Commercial 17,283%Sq/M -

69,13216'3 Commercial 17,283%Sq/M -

69,132

16'4 Commercial 17,283%Sq/M -

69,132

17'1 Commercial:%oce,%retail,%storage 17,286%Sq/M 91%

86,430

17'2 Commercial:%Oce,%retail 17,286%Sq/M 90%

86,43017'3 Commercial:%Oce,%studio 17,286%Sq/M 100% 86,430%17'4 ResidenXal:%17%Units 17,286%Sq/M 100%

86,430

17'5 ResidenXal:%9%Units 17,286%Sq/M 100%

86,430


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18'1Commercial:%Oce/Retail 21,004%Sq/M 100%

105,02018'2 Commercial:%Oce/Retail 21,004%Sq/M 100%

105,02018'3 ResidenXal:%23%Units 21,004%Sq/M 100% 105,020


105,020


105,020

19'1 ResidenXal:%12%Units 13,312%Sq/M -39,93619'2 ResidenXal:%15%Units 13,312%Sq/M - 39,936

19'3 ResidenXal:%16%Units 13,312%Sq/M -39,936

20'1 Commercial:%Restaurant 7,006%Sq/M -

28,02420'2 Commercial:%Hospitality,%Oce 7,006%Sq/M -

28,02420'3 Commercial:%Hospitality,%Oce 7,006%Sq/M '

28,024

20'4 Commercial:%Hospitality,%Oce 7,006%Sq/M -

28,024

30'1 Commercial:%Oce 2,700%Sq/M 22%8,10030'2 Commercial:%Oce,%Retail 2,700%Sq/M 100% 8,100

30'3 Commercial:%Oce 2,700%Sq/M -8,100

35'1 ResidenXal%%%%%%%%%%or%%%%%%%%%%Commercial:%Hospitality 7,000%Sq/M -14,000

35'2 ResidenXal%%%%%%%%%%or%%%%%%%%%%Commercial:%Hospitality 7,000%Sq/M -14,000

36'1 Commercial:%Museum 13,437%Sq/M 30%

107,496

36'2 Commercial:%Storage,%data%center 13,437%Sq/M -

107,496


107,49636'4 Commercial:%Storage,%data%center 13,437%Sq/M -

107,49636'5 Commercial:%Storage,%data%center 13,437%Sq/M -

107,496


107,496


107,496

36'8 Commercial:%Storage,%data%center 13,437%Sq/M '

107,496

37'1 Commercial:%Restaurant,%retail 7,866%Sq/M -21,435

37'2 Commercial:%Restaurant,%retail 13,569%Sq/M 28% 21,435

GROSS%SQ/FTGROSS%SQ/FT 966,409


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BUILDING 9

PropertyInformation

Floor Area: 51,605 Square Feet

Number of Stories: 4

Construction: Brick exterior with heavy timber framing, rubber membrane roof, maple flooring

Use Category: Office space

Energy: Currently powered through 277/480 volt and 575 volt power. HVAC via high efficiency hot water boilers/electric condensers

Parking: Access to current 300-car lot as well as planned parking garage

Floor Space: 40 % built out and leased to office users

Access: 2 Main entrances and several base floor loading docks

Utilities: City water & sewer, natural gas, CMP, Fiber Optic Internet


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BUILDING 10

PropertyInformationFloor Area: 59,651 Square Feet


Construction: Brick exterior with heavy timber and steel framing, maple flooring, tar/gravel roof

Potential Uses: Light Manufacturing, Office

Energy: Currently powered through 277/480 volt and 575 volt power. Scheduled for high efficiency hot water system


Floor Space: Open floor space, suitable for build out

Access: Two loading docks



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BUILDING 11

PropertyInformation




Potential Uses: Office, light manufacturing, or residential

Energy: Currently powered through 277/480 volt and 575 volt power. Scheduled for high efficiency hot water heating/cooling


Floor Space: Open floor space, space ready for buildout

Access: Elevator, base floor loading dock with lift



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BUILDING 12

PropertyInformation



Construction: Brick exterior with heavy timber framing, rubber membrane roof, maple flooring, exterior wall built on a radius curve

Potential Uses: Office space, Residential

Energy: Currently powered through 277/480 volt and 575 volt power. Heat via high efficiency hot water system

Parking: Access to multiple lots, as well as planned parking garage

Floor Space: Open floor space, ready for buildout

Access: 2 high capacity freight elevators & 1 passenger elevator



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BUILDING 13

PropertyInformation



Construction: Brick exterior with heavy timber framing, rubber membrane roof, top floors maple flooring, bottom floor concrete slab on grade

Potential Uses: Office, education, wellness, event space, mixed-use commercial

Energy: Currently powered through 277/480 volt and 575 volt power. Scheduled for high efficiency hot water

Parking: Access to multiple lots on site, as well as planned parking garage

Floor Space: Open floor plate, ready for immediate buildout

Access: 2 high capacity freight elevators & 1 passenger elevator



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BUILDING 13-W

PropertyInformation



Construction: Brick exterior with heavy timber framing, rubber membrane roof, maple flooring, top floor constructed with 30 foot ceilings with skylights

Potential Uses: Large industrial/manufacturing

Energy: Currently powered through 277/480 volt and 575 volt power. Heated via high efficiency hot water boiler system

Parking: Access to multiple lots, including planned parking garage

Floor Space: Open floor plate on second floor, first floor is leased by the Saco River Dye House and Banded Horn Brewing Co.

Access: Base floor loading dock access



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BUILDING 15

PropertyInformation




Potential Uses: Residential


Parking: Access to two separate parking areas

Floor Space: Open floor plate, ready for immediate build out

Access: Multiple entrances, one loading dock, freight elevator



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BUILDING 16

PropertyInformation




Potential Uses: Office space, residential


Parking: Access to 125-car lot


Access: Passenger elevator



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BUILDING 17

PropertyInformation




Use: Commercial and offices on floors 1, 2, and 3; 26 residential apartments on floors 4 and 5.

Energy: Currently powered through 277/480 volt and 575 volt power. High efficiency hot water boiler. Refrigerant based AC on floors 3 and 5.


Floor Space: Fully built out

Access: Passenger and freight elevators, exterior loading dock



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BUILDING 18

PropertyInformation




Use: Commercial and offices on floors 1, 2, and 3; 26 residential apartments on floors 4 and 5.

Energy: Currently powered through 277/480 volt and 575 volt power. High efficiency hot water boiler. Refrigerant based AC on floors 3 and 5.


Floor Space: Fully built out

Access: Passenger and freight elevators, exterior loading dock



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BUILDING 19

PropertyInformation




Planned Uses: Approved for a 43 unit apartment project

Energy: Currently powered through 277/480 volt and 575 volt power. Scheduled for high efficiency heating and cooling

Parking: The approved project has 40 designated parking spaces


Access: Multiple entrances and elevator scheduled



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BUILDING 20

PropertyInformation




Potential Uses: Hotel, Restaurant, Office space.

Energy: Currently powered through 277/480 volt and 575 volt power. Scheduled for high efficiency HVAC

Parking: Access to 125-car lot, as well as adjacent public parking


Access: Passenger elevator and multiple entrances



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BUILDING 30

PropertyInformation




Use: Office space

Energy: Currently powered through 277/480 volt and 575 volt power. Scheduled for high efficiency HVAC

Parking: Access to 125-car lot, as well as adjacent public parking


Access: Passenger elevator and multiple entrances



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BUILDING 35

PropertyInformation



Construction: Wooden exterior with heavy timber framing, rubber membrane roof, concrete flooring

Use: Approved for 19 luxury apartments

Energy: Currently powered through 277/480 volt and 575 volt power. Scheduled for high-efficiency HVAC

Parking: Access to 125-car lot, as well as planned parking garage


Access: Passenger elevator, freight elevator, loading dock



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BUILDING 36

PropertyInformation



Construction: Brick exterior with heavy timber framing, rubber membrane roof, concrete flooring

Potential Uses: High security & climate controlled storage, data storage, museum space

Energy: Currently powered through 277/480 volt and 575 volt power. Scheduled for Combined Heat and Power (CHP)



Access: High capacity freight elevator, loading docks



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BUILDING 37

PropertyInformation



Construction: Brick exterior with heavy timber framing, rubber membrane roof, concrete flooring

Potential Uses: Restaurant, Hotel, Commercial

Energy: Currently powered through 277/480 volt and 575 volt power. Scheduled for Combined Heat and Power (CHP)

Parking: Access to 125-car lot, as well as planned parking garage


Access: Multiple access points



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Pepperell Center........................................................................Building 35 Apartments..............................................................Laconia House Residences.......................................................Building 20 Restaurant & Hotel.................................................Textile Center..............................................................................Counting House Offices............................................................Parking Garage..........................................................................RiverWalk.....................................................................................

3637383940414243

PLANNED PROJECTS


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Pepperell Center

The new Pepperell Center (formally Building 13) is the largest single structure of the complex. It is 136,000 square feet of open, high ceiling, high weight load floor space. The flexibility of the open space in the Pepperell Center will allow for many development options. The primary focus is a combination of office and retail uses. The immediate plan is to speculate on a complete storefront build out of the south elevation of the structure. The existing south face is a mix of loading docks, dilapidated windows, and small entry doors. This faade is seen clearly by all who pass on Main Street in the downtown. The daily vehicle pass-by count of the new formal entrance is extremely high. While it is the conservative philosophy of this development team to build out on a good news basis only, we feel that a rebuild of the Building 13 faade will generate leasing activity immediately. Plans have been engineered and the project has been priced. We would anticipate this work to be in place by the spring 2013.


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Building 35 Apartments

City approvals are in place for the construction of 19 luxury apartments in Building 35 of the North Dam Mill. The proposed locations key feature are the direct views of the Saco falls. Other features will include granite countertops, stainless steel appliances, washer/dryer hookups, and decks built over the river. As with the other apartments within the complex, careful attention will be paid to preserving the interior feel of old mill space (i.e. original hardwood floors, exposed brick walls, exposed beams, and high ceilings). Construction is scheduled to commence in October of this 2013, with a predicted completion of Spring of 2014.


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The Laconia House Residences

The former Building 19 has city approvals in place for the construction of 43 new work force apartments. Application for tax credit allocations has been filed through the Maine State Housing Authority low income housing program. Additionally, the project is soon to be approved for both state and federal historic tax credits, as administered by the National Park Service. Construction is proposed to commence on July 1, 2014. The project is expected to be leased up and fully in service by April of 2015.


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Building 20 Restaurant & HotelThe proposed hotel is to be located in Building 20, which prominently stands on Main Street with south east views onto the Saco River.

We have commenced the planning and approvals process for a 40-room hotel with the City of Biddeford. This is in response to inquiries from regional hoteliers. The envisioned hotel will fill the area niche for a quality urban boutique hotel.

The proposed hotel will be anchored by a 6,000 square foot, 180-seat restaurant. Negotiations with an established Maine restaurateur are currently in progress.

The proposed plan is not a generic hotel model. We are seeking to create a unique product that captures the spirit of the mill, with industrial style, rusted steel, wood floors, and exposed beams and exposed brick. The result will be a one-of-a-kind high quality product.


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Industrial Center (Building 13-W)

The development teams construction crew recently completed the build out of 18,000 square feet of manufacturing, office and retail space for the new long term tenant, Saco River Dye House. Additionally, Banded Horn Brewing is a 5,000 square foot brewing operation that opened in October of 2013. These uses of space fall well into the philosophy of bringing manufacturing labor back to the area. Building 13-W has become a center for production, warehousing, fulfillment and retail sales. We are currently developing and marketing the concept in order to solidify lease commitments. Building 13-W is a two story 51,000 square foot structure. 50% of the building is completed and leased out to date.


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The Counting House Offices (Formerly Building 30)

The Counting House is a 9,000 square foot brick office structure located at the gateway entrance to the Pepperell Mill Campus. It is perfect for several small office users. The development team placed the building in service last year by building out and leasing the ground floor level to the local newspaper company, the Courier. The building is 50% leased to date. The remaining space is in white envelope condition, ready for a rapid and cost-effective build out process.


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PARKING GARAGE

The above are renderings of the proposed city parking garage. The city has

completed a full parking garage feasibility study for downtown Biddeford. The

Pepperell Mill Campus is in negotiations with the city to place the proposed

garage on site. The project would be funded via a variety of public resources

and would offer parking to Pepperell Mill Campus tenants, as well as provide

public parking for downtown commercial businesses.


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RIVERWALK

Construction of a city-sponsored RiverWalk is in progress, in partnership with

several stakeholders in the mill district. The RiverWalk seeks to create a

continuous public way along the Saco River, as well as to connect the public to

mill district redevelopment. One of the featured phases of the RiverWalk is a

pedestrian bridge connecting the cities of Saco and Biddeford. The Bridge also

connects the Pepperell Mill Campus to the Amtrak Station.


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JOB CREATION & COMMUNITY BENEFIT

With approximately one million square feet of space in the Pepperell Mill

Campus, the project looks to create new jobs for the Biddeford-Saco area. The

aim is to synthesize living space with workspace, and create a new vibrant

business community. The proposed campus would include, offices, residential,

education, light manufacturing, labs, storage, an energy plant, a museum, retail

and restaurants. Project job creation assumes 100% buildout/lease up of the

campus. The Pepperell Mill Campus can create 727 permanent jobs, while the

construction and development of the project could yield 410,000 person hours

of work. This is the equivalent of offering 40 people full-time employment for 5

years.

In addition to the direct effects on new employment, the added jobs and

residents to the area would have a positive effect on numerous local businesses.

For example:

Assume that half of the new campus employees eat lunch at local restaurants. This would translate into an additional 350 patrons a day for the downtown restaurants

Assume that one half of employees, residents and temporary workers spend $10 per day at the local convenience store. This equals a possible additional $5,400 in daily income to that store

Local lumber yards would see great business growth due to the projects construction material demands

Local subcontractors would see an additional demand for their services for the buildout

The city of Biddeford would see an immediate growth in the tax revenues received from area businesses

A general increase in hotel, legal, accounting, grocery, restaurant and all local business activity

A full analysis on residual business creation from the project is a difficult concept

to quantify. However, it is safe to say that the local downtown economy will

experience real and significant growth. The jobs created by the project will not

only support our predictions, they will provide a real boost to the local economy.


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DEVELOPMENT TEAM

Doug Sanford, Owner/DeveloperSanford has been developing properties with Eastland Construction & Management in the greater Biddeford-Saco area for over 30 years. Projects include renovation of Saco-Biddeford Savings, McArthur Hall, Puritan Block, Bangor Savings Bank, 26 Alfred St. and 38 Alfred St., among others. The North Dam Mill is highly successful, with 95% occupancy in commercial and residential units. Sanfords long experience and energy will be fully utilized in the redevelopment of the mills.

Scott Joslin, General ManagerJoslin teamed up with Eastland Construction & Management in 2007 to oversee the redevelopment of the North Dam Mill. Joslin has been in the commercial construction, apartment ownership, and project planning for 30 years. Such experience is a vital asset to the planning and development of The Pepperell Mill Campus.

Eastland Construction & Management, Inc has been in existence for 30 years, providing commercial construction and property management services to the southern Maine region. The primary focus of Eastland is now the Pepperell Mill Campus. Eastland is comprised of a full staff, including on site property managers, office manager, accounting department, marketing and public relations professionals, web and graphic designer, construction supervisors, project manager, construction estimator, and in house carpenters, laborers, cleaning services, plumbers and electricians. The ability to self provide construction and property management services has allowed the mill redevelopment project to maintain low monthly expenses, as well as benefit from below market capital expenditure on all construction costs.


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DEVELOPMENT PLAN SUMMARY

The future development plan for the campus will closely match the model of the

proven development formula of North Dam Mill: incremental phasing according

to market and tenant demands.

All usable space within the complex is ready for interior tenant build outs. That is,

critical building infrastructure, such as roofs, walls, floors, sprinkler, plumbing and

sewer feeds, heat and electrical services, are all in place. Depending on the

size of the user, finished space could be delivered on schedule in anywhere from

1-6 months. The advantages that the campus has over competing projects are

three-fold:

Fast delivery of finished space

Inexpensive build out costs due to good building conditions

Efficient heat and electrical costs

The result is finished space offered at below-market rates. The project sits in a

strong position for incremental growth, as it enjoys below market carrying costs.

The overriding development philosophy includes:

Implement a conservative incremental growth plan

Maintain aggressive target marketing to campus projected uses

Maintain a low cost basis as we continue to develop

Create the proper balance of occupants for a successful mixed use

project

Build a strong economic base that grows the local economy


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pmc prospectus

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