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Maine cities begin to transform decaying retail space into housing

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Maine cities begin to transform decaying retail space into housing


Augusta’s Kmart plaza, a prime yet fading piece of property in the heart of Maine’s capital city, has sat underutilized and largely vacant for years.

Even those who may pass it daily may not know that it has a commanding view of the State House, which lies only a short walk away. Like in many cities around Maine and around the nation, officials are planning to revitalize the former shopping area as a mixed-use development with 60 market-rate apartments, retail and office space and a hotel.

The old Kmart plaza at 58 Western Avenue in Augusta. Credit: Linda Coan O’Kresik / BDN

“We’re looking at this as a $48.5 million project, which certainly recognizes the importance, the prominence and the potential status of this property,” Keith Luke, Augusta’s economic development director, said. “It has been tremendously underutilized in every sense, and undervalued.”

It’s one of the more prominent early Maine examples of redevelopment in shopping areas, a trend that has taken off in recent years amid changing consumer habits and a deepening housing crisis. If a contract zone for the project is approved, Augusta will join municipalities including Kittery and Brunswick in bringing residents into underused retail space.

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“The bottom line is that there’s such a shortage of housing in the state,” Joseph Italiaander, a real estate broker with The Boulos Company focused on the commercial market, said. “Getting creative with where you develop housing has kind of led to retail centers as options.”

In Kittery, a lack of workforce housing for shipyard workers spurred a redevelopment project in its outlet malls. In Bangor, where rentals are just as unaffordable as they are in Portland because of lower incomes and inventory, the city has been trying to get in touch with the owners of its fading mall for years to inquire about turning vacant storefronts into apartments.

The old Kmart plaza in Augusta has sat largely vacant for years. Credit: Linda Coan O’Kresik / BDN

There are few better sites for housing than strip malls, which are often close to the town centers, have existing utility service and lie on public transportation lines. Unless there’s a historic element to these stores, they are most often razed and totally redeveloped rather than repurposed because of their age and because it’s more cost-effective, Luke said.

“These are the areas that we want to promote exactly this type of development in, to make the highest and best use of property that is served by public utilities,” Luke said.

The Augusta project, proposed by developer George Campbell, who told the Kennebec Journal he has an option to purchase the property, would revitalize a nearly 8-acre plaza that Luke said has been underutilized for 15 years. The Kmart closed  at the end of 2019, and its space has more recently hosted a seasonal Spirit Halloween store.

These kinds of redevelopment efforts are part of a larger “live, work, play” trend in community development that stands in stark contrast to the suburban sprawl trend of the late 20th century, Italiaander said. People today want rental housing with easy access to neighborhood services, restaurants and amenities.

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It’s likely that Maine will see more of these mall redevelopment projects in major cities outside the greater Portland area, including Augusta, Waterville, Lewiston, Auburn and Bangor, Luke said. That’s in large part because there is a lack of available properties in the Portland area, and those that are available are expensive to acquire and redevelop.

The old Kmart plaza in Augusta is being eyed as a mixed-use development with 60 market-rate apartments, retail and office space and a hotel. Credit: Linda Coan O’Kresik / BDN

Italiaander added that these projects are often easier in suburbs, where larger parcels of commercial land are being underused. Despite retail shifting more online in recent years, Italiaander said the sector is still holding up well, which is why these developments are mixed-use and include some retail.

“It’s a sign of strength,” he said. “But housing tends to be a greater need right now in some of these areas.”



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Maine legalized iGaming. Will tribes actually benefit?

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Maine legalized iGaming. Will tribes actually benefit?


Clarissa Sabattis, Chief of the Houlton Band of Maliseets, foreground, and other leaders of Maine’s tribes are welcomed by lawmakers into the House Chamber in March, 2023 in Augusta. (Robert F. Bukaty, /Associated Press)

Maine’s gambling landscape is set to expand after Gov. Janet Mills decided Thursday to let tribes offer online casino games, but numerous questions remain over the launch of the new market and how much it will benefit the Wabanaki Nations.

Namely, there is no concrete timeline for when the new gambling options that make Maine the eighth “iGaming” state will become available. Maine’s current sports betting market that has been dominated by the Passamaquoddy Tribe through its partnership with DraftKings is evidence that not all tribes may reap equal rewards.

A national anti-online gaming group also vowed to ask Maine voters to overturn the law via a people’s veto effort and cited its own poll finding a majority of Mainers oppose online casino gaming.

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Here are the big remaining questions around iGaming.

1. When will iGaming go into effect?

The law takes effect 90 days after the Legislature adjourns this year. Adjournment is slated for mid-April, but Mills spokesperson Ben Goodman noted it is not yet known when lawmakers will actually finish their work.

2. Where will the iGaming revenue go?

The iGaming law gives the state 18% of the gross receipts, which will translate into millions of dollars annually for gambling addiction and opioid use treatment funds, Maine veterans, school renovation loans and emergency housing relief.

Leaders of the four federally recognized tribes in Maine highlighted the “life-changing revenue” that will come thanks to the decision from Mills, a Democrat who has clashed with the Wabanaki Nations over the years over more sweeping tribal sovereignty measures.

But one chief went so far Thursday as to call her the “greatest ever” governor for “Wabanaki economic progress.”

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3. What gaming companies will the tribes work with?

DraftKings has partnered with the Passamaquoddy to dominate Maine’s sports betting market, while the Penobscot Nation, the Houlton Band of Maliseet Indians and the Mi’kmaq Nation have partnered with Caesars Entertainment to garner a smaller share of the revenue.

Wall Street analysts predicted the two companies will likely remain the major players in Maine’s iGaming market.

The partnership between the Passamaquoddy and DraftKings has brought in more than $100 million in gross revenue since 2024, but the Press Herald reported last month that some members of the tribe’s Sipayik reservation have criticized Chief Amkuwiposohehs “Pos” Bassett, saying they haven’t reaped enough benefits from the gambling money.

4. Has Mills always supported gambling measures?

The iGaming measure from Rep. Ambureen Rana, D-Bangor, factored into a long-running debate in Maine over gambling. In 2022, lawmakers and Mills legalized online sports betting and gave tribes the exclusive rights to offer it beginning in 2023.

But allowing online casino games such as poker and roulette in Maine looked less likely to become reality under Mills. Her administration had previously testified against the bill by arguing the games are addictive.

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But Mills, who is in the final year of her tenure and is running in the high-profile U.S. Senate primary for the chance to unseat U.S. Sen. Susan Collins, R-Maine, said Thursday she would let the iGaming bill become law without her signature. She said she viewed iGaming as a way to “improve the lives and livelihoods of the Wabanaki Nations.”

5. Who is against iGaming?

Maine’s two casinos in Bangor and Oxford opposed the iGaming bill, as did Gambling Control Board Chair Steve Silver and the Maine Center for Disease Control and Prevention, among other opponents.

Silver noted Hollywood Casino Bangor and Oxford Casino employ nearly 1,000 Mainers, and he argued that giving tribes exclusive rights to iGaming will lead to job losses.

He also said in a Friday interview the new law will violate existing statutes by cutting out his board from iGaming oversight.

“I don’t think there’s anything the board can do at this point,” Silver said.

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The National Association Against iGaming has pledged to mount an effort to overturn the law via a popular referendum process known as the “people’s veto.” But such attempts have a mixed record of success.



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Flu, norovirus and other illnesses circulating in Maine

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Flu, norovirus and other illnesses circulating in Maine


While influenza remains the top concern for Maine public health experts, other viruses are also currently circulating, including norovirus and COVID-19.

“Influenza is clearly the main event,” said Dr. Cheryl Liechty, a MaineHealth infectious disease specialist. “The curve in terms of the rise of influenza cases was really steep.”

Maine reported 1,343 flu cases for the week ending Jan. 3, an uptick from the 1,283 cases recorded the previous week, according to the Maine Center for Disease Control and Prevention. Hospitalizations increased to 147 from 108 during the same time periods.

“I hope the peak is now,” Liechty said, “but I’m not really sure.”

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The U.S. Centers for Disease Control and Prevention reported on Friday that all of New England, except for Vermont, is currently experiencing “very high” levels of influenza. Vermont is in the “moderate” category.

“What we are seeing, overwhelmingly, is the flu,” said Andrew Donovan, associate vice president of infection prevention for Northern Light Health. “We are seeing both respiratory and gastrointestinal viruses in our patients.”

Norovirus also appears to be circulating, although due to its short duration and because it’s less severe than the flu, public health data on the illness — which causes gastrointestinal symptoms that typically resolve within a few days — is not as robust.

“Norovirus is the gastrointestinal scourge of New England winters and cruise ships,” Liechty said.

According to surveillance data at wastewater treatment plants in Portland, Bangor and Lewiston, norovirus levels detected in those communities are currently “high.” The treatment plants participate in WastewaterSCAN, which reports virus levels in wastewater through a program run by Stanford University and Emory University.

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Dr. Genevieve Whiting, a Westbrook pediatrician and secretary of the Maine chapter of the American Academy of Pediatrics, said viruses are prevalent right now, especially the flu and norovirus.

“For my patients right now, it’s a rare encounter that I hear everyone in a family has been healthy,” Whiting said. “I’ve had families come in and say their entire family has had norovirus. Several of my patients have had ER visits for suspected norovirus, where they needed IV fluids because they were dehydrated.”

Both Liechty and Whiting said they are seeing less respiratory syncytial virus, or RSV, likely because there has been good uptake of the new RSV vaccine, which is recommended for older people and those who are pregnant. The vaccine was approved by the Food and Drug Administration in 2023.

“The RSV vaccine has been a real success, as RSV was a leading cause of hospitalizations for babies,” Whiting said.

Meanwhile, COVID-19 cases increased to 610 in the final week of 2025, compared to 279 the previous week. Influenza and COVID-19 vaccinations are available at primary care, pharmacies and clinics across the state.

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“If you haven’t gotten your flu shot yet,” Liechty said, “you should beat a hasty path to get your shot.”



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After feds cut key food insecurity survey, Maine lawmaker urges state to fill data void

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After feds cut key food insecurity survey, Maine lawmaker urges state to fill data void


With food insecurity on the rise, Maine lawmakers are scrambling to ensure they have a sense of how many people are going hungry after the federal government’s recent cancellation of a key food insecurity survey. The U.S. Department of Agriculture’s Household Food Security Report, started under former President Bill Clinton, measured rates of food insecurity […]



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