PRESQUE ISLE, Maine — The Board of Directors of the nonprofit Ignite PI is working to acquire the iconic Northeastland Hotel from the Hedrich family with help from a well-known city benefactor.
“A contingent purchase and sale agreement is in place,” Clint Deschene, Ignite PI director of community innovation, said on Monday afternoon.
“With the loan from Northern Maine Development Commission, a $1.5 million grant and private donations, we will be able to acquire the hotel,” Deschene said
He declined to reveal the sale offer price at this time, but said Ignite PI will operate the hotel with existing staff.
The Rodney and Mary Barton Smith Family Foundation gave Ignite PI a $1.5 million grant commitment to assist with the acquisition. Previously, the foundation awarded the nonprofit organization a $300,000 grant for start-up expenses.
Deschene said the inspections and other pre-purchase contingencies should be complete by the end of April.
“We’ve been challenged by the foundation to raise additional funds to close the gap to reach the goal,” Deschene said. “Ignite PI must raise an additional $275,000 in the short term by April 15, 2021.”
“We are bringing a new, innovative approach to the traditional hotel management and business model,” he said. “The acquisition and renovation of The Northeastland not only benefits Ignite PI as an entity … Everyone in the community benefits from this acquisition.”
The decision to enter into this agreement was not made quickly, the Hedrich family said in a release.
“The Northeastland has been a pillar of the Hedrich family for decades. We are confident that this opportunity will not only continue the legacy of our family but will be the anchor of the downtown in a whole new way,” they said.
“We have been waiting for the right fit for the sale of the property. We are excited to see what the next chapter of The Northeastland will bring to our beloved community. We have faith that Ignite PI will carry on this legacy in the best way possible for our community,” the family said.
There are plans at this time to open a co-work space for aspiring entrepreneurs, business travelers and others on the first floor of the hotel.
Additionally, Ignite PI plans to open a new restaurant, re-work spaces and re-open the grand ballroom.
“Our first step is meeting the acquisition requirements,” Deschene said, referring to funding requirements.
