The Friends of Great Diamond Island Forms to Fight Luxury Hart Hotel

PORTLAND, ME, Aug 27 (MARKET WIRE) --
Several years ago, readers across the globe chuckled over residents of a
remote Maine island barely one mile from end to end warring over the use
of golf carts on public roads. Today, many of these former opponents have
banded together to oppose a proposed hotel development on the same island
-- The Inn at Diamond Cove. Called "The Friends of Great Diamond Island
(The Friends)," the new group is composed of homeowners living in both
the private Ft. McKinley Historic District known as Diamond Cove, as well
as the public "Cottage Community" of the island. The group has raised a
legal fund, and intends to oppose the development on a number of fronts.

The proposed commercial hotel is supported by the City of Portland, and
the Hart Hotels -- the latter being financial backers for local developer
David Bateman. The project seeks to develop a nightly rentable 36-unit
hotel (with multiple roomed units offering approximately 70 beds in
total) in the Fort McKinley Parade Ground historic district, in the
Diamond Cove residential community on Great Diamond Island -- an
otherwise quiet and idyllic pedestrian island neighborhood. Promotion of
the commercial hotel project was spurred when the City of Portland filed
tax liens against the dilapidated buildings in 2004. The development
would also include a swimming pool and "service bar" to be constructed in
areas previously dedicated to common open space. The developer is also
seeking City approval to increase the capacity of the commercial hotel by
a second stage development in a separate historic building, which would
contain up to 24 units (approximately 45 additional beds).

The proactive action by the City to promote development at Diamond Cove
with the David Bateman/Hart Hotels partnership is particularly upsetting
to year-round island residents such as Faith Boudreau. "Island life is
precious, and difficult enough to preserve in an age of YouTube, and
cell-phones. We're talking about a community that evokes memories of
Mayberry RFD, where neighbors wander from porch to porch and the streets
in summer are full of kids drawing with chalk and riding scooters. This
proposed commercial hotel will threaten that."

The tightly planned development, in the former Fort McKinley that guarded
Portland Harbor since 1891, was reluctantly approved by existing Great
Diamond Island homeowners in the 1980s based on clear limits on the amount
of development allowed. "Too much development and then you've got too much
traffic, too much burden on the fragile island environment resulting in an
overtaxed ecosystem and physical infrastructure," says Bill Robitzek, head
of The Friends of GDI.

In order for the City and the developer to proceed with the commercial
hotel project, the Diamond Cove property owners had to approve substantial
amendments to remove or weaken certain Diamond Cove restrictions and
covenants by 2/3rds majority vote. However, there did not appear to be
enough homeowner votes to carry the amendment on its own; the amendment
only passed because the City of Portland voted 23 votes on behalf of the
two tax liened buildings even though its ownership of the buildings was in
doubt, and therefore may not have had proper standing to make the votes,
says Holly Fitch, a seasonal resident whose parents live full-time on the
island. "If you ask the people who actually live at Diamond Cove --
excluding those people who own homes for the predominant purposes of
renting them out for a profit -- I believe you'll find a majority oppose
the project. When you ask and include those in the Cottage Community, I
would not be surprised to find that nearly 75% of homeowners on the entire
island oppose the project," says Fitch.

The City and Hart Hotels have pushed on nonetheless. On June 24th in a
public meeting, the City of Portland Planning Board narrowly (3-2) voted
to recommend to the Portland City Council the hotel developer's proposed
changes in the zoning to accommodate the proposed commercial hotel. The
recommendation was passed despite an over-flowing hearing-room filled with
islanders -- almost all of whom spoke passionately and clearly against the
project -- and with members of Planning Board even voicing hesitations
about the commercial hotel proposal. "Stronger action is needed and that's
what our group is about. The City is rushing this through despite the
potential for multiple conflicts of interest and dubious legal positions
-- probably because it has a huge liability on its hands," says The
Friend's Robitzek.

The destruction of the residents' quality of life by the encroachment of
investors buying property for profit is a core concern of the residents
who oppose the commercial hotel development. The financial structure of
the commercial hotel development is to sell "hotelminium" units to
non-resident investors under an investment plan that is built around
renting out the rooms on a per-night basis. "This does not add homeowners
to the island -- homeowners who watch out for each others' kids, who pick
up trash when they see it, who try to keep the noise down so they don't
upset their neighbors -- but large groups of people for 'destination'
weddings, business events, and other on-island happenings for transient
visitors," says Diamond Cove resident Faith Boudreau.

Fitch notes the irony in the slogan for the Hart Hotels which references
family values. "If they were really concerned about what the families
really want on the island, they would work harder at talking to them," she
says. The goal of The Friends of Great Diamond Island is to promote a use
for the buildings more compatible with being one of the few remaining
pockets of traditional Maine island culture.

Interviews and tours of the island are available on request to members of
the press.

Contacts:
Bill Robitzek
(Cottage Community Resident)
Email Contact
+1.207.766.2000
+1.207.212.7709 cell

Faith Boudreau
(Diamond Cove Resident)
Email Contact

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