Pub owner: I reached out to city officials to lease land before it was leased to city

The image shows city workers and equipment at 13-17 Hanson St. during September sitework; inset, from left, former city councilor Doug Lachance and City Councilor Chris Rice (Courtesy photos)

ROCHESTER - Former city councilor Doug Lachance said on Tuesday that he spoke with Porter's Pub owner Jim Hanley around February of last about his interest in using 13-17 Hanson St. for outdoor dining.

Hanley said he reached out to both Lachance and City Councilor Chris Rice, and that the three of them discussed the prospect of the city leasing it from the developer and then subleasing it to Porter's Pub. The next thing he knew the city had leased it, but had no plans to sublet.

Economic Development Director Mike Scala told The Rochester Voice recently that that would violate their lease agreement with North Woods Property of Exeter, which exempts commercial activity.

The city plans to open it as a green space, but Hanley says their improvements to create the small park caused his restaurant's basement to flood costing him thousands of dollars to clean up the mess. He thinks the city should pay for the mitigation work currently being billed to his insurer.

Scala said he couldn't go into details about how the City Council came to approve the lease with Great North Property Management, Inc., of Exeter, because the decision came in nonpublic session, but he did say the conversation began when two city councilors, including one former city councilor, approached him to say the cellar hole at the former Colby's Tavern was "unsightly in the downtown."

The city's lease took effect on July 19, 2021, according to Scala.

Scala told The Voice he never heard about Hanley's desire to lease the plot for parking until after the city had signed the lease.

Scala said the cost of the lease is a wash because they send Great North Management a check for the property tax bill, and they send it back to the city. Breitling Holdings, whose agent of record is Justin Gargiulo, bought the property in 2017 for $135,000.

Hanley says the city's elevation of the adjacent lot at 13-17 Hanson St. caused his business to flood on Feb. 10.
Hanley said water poured in through a small bulkhead on the side of the building nearest North Main Street, leaving his basement with about a half inch of water.

In response to a Right to Know request seeking information on the city's elevation of the lot, City attorney Terence O'Rourke said last week there were no documents regarding the September site work, but later provided The Voice with a summary of how the idea came about.

"The City's work at 13 Hanson Street is the vision of the City's Economic Development Department," O'Rourke wrote. "Once approved by the City Council, Economic Development Director Mike Scala discussed the work with Director of City Services Peter Nourse. In turn, Nourse held in person meetings with Ken Henderson, Municipal Service Supervisor - Highway and Fleet Maintenance, to discuss planning and completion of the work. In regards to the physical conduct of the City's work at 13 Hanson Street, the City made use of City staff on regular staff time, used City equipment, and City materials.

"The City did not account for this time, equipment use, or material separately from all other work conducted during the staff's duty days," O'Rourke continued. "In other words, the City cannot express in numeric terms the amount of time or resources used on this work. The City can state definitively that it did not hire additional workers, buy additional equipment, or buy additional materials to complete the work at 13 Hanson Street. In sum, no records exist in fulfillment of your Right to Know request."

Hanley said the property at Porter's Pub, formerly Magrilla's, had never flooded until February.

The Voice sent an email to City Manger Blaine Cox on Monday and Tuesday asking whether the city's insurance would be helping with Hanley's claim, but have heard nothing back.

Hanley said he expects to air his grievances with the city regarding the flooding at the March 17 Public Works and Buildings Committee meeting.

Hanley said last week that City Councilor John Larochelle stopped by to see him recently to see if he could aid him in any way, including trying to get him on the agenda for the next committee meeting.

Both Larochelle, who is a member of the Public Works and Building Committee; and Don Hamann, its chair, have been unavailable for comment.

"He (Larochelle) said he wants to get to the bottom of this," said Hanley, who faults the city's policy that allows it to do earthworks without filing a stormwater management and erosion control permit, something any private contractor would have to obtain.

O'Rourke said since it was the city doing the work, none was necessary.

"In this case, the department conducting the work and the department issuing the permit were the same, so the City would not apply for its own permit," he told The Voice.

The permit is required whenever someone "alters land or engages in any activity which causes or contributes to stormwater runoff discharge," according to the Stormwater Management and Erosion control permit application on the city's website. "The owner shall be required to apply to the Department of Public Works and obtain such permit from the Department, prior to undertaking any action," the permit application says. "This requirement shall apply to any activity that will disturb or impact a land area greater than 5,000 cumulative square feet unless specifically exempted by the ordinance."
The land at 13-17 Hanson St. comprises .24 acres, or about 10,454 square feet, well over the threshold that would require a permit.
Asked if it "seemed ill-conceived and reckless that a city would not have to abide by its own rules," Cox responded, "No comment" on Tuesday.

Rice has also been unavailable for comment.