BANGOR, Maine — The historic Main Street property that houses Manna Ministries will go on the auction block next month after the beleaguered nonprofit failed to meet the conditions of a pair of mortgages and the bank pursued foreclosure.
Manna is working to find a new home somewhere in Bangor before the auction, but will continue serving meals and operating a food pantry until then, according to Bill Rae, the organization’s program director.
“We have a very short time in which to pull this off,” Rae said Monday.
The auction notice was published in the weekend edition of the Bangor Daily News.
Tranzon, a national auction company, will oversee the auction at 629 Main St. at 10:30 a.m. Thursday, Sept. 8. Anyone interested in bidding must bring a $25,000 deposit to participate in the auction. Bidders who don’t cast a winning bid will see their deposit returned.
Machias Savings Bank hired the firm to auction off the 35,000-square-foot building and “debtor’s fixtures, furniture, furnishings, machinery, equipment, and intangible personal property located on the premises,” the listing states.
According to the notice, Manna “breached conditions” of a pair of mortgage loans, one issued Aug. 2, 2007, for $300,000, and the other July 28, 2008, for $75,000, prompting the public auction “for the purpose of foreclosing.”
Bank officials declined to elaborate on the reasons behind the auction or status of the mortgages Monday.
Manna bought the building in 2004 after raising $685,000 during a six-month campaign to finance the purchase and renovations. There were still significant repairs needed years later, including a new furnace, roof and windows, so Manna took out the mortgages, Rae said. A portion of that money also was used to reimburse a grant from the Federal Bank of Boston after Manna didn’t meet the conditions of the grant, he said.
The faith-based nonprofit has several debts hanging over it as this auction approaches, but has been taking steps to make good on those debts, Rae said.
The organization issued a plea for support from the public in April, one of several in recent years, seeking financial contributions from the community to keep its doors open. The state said Manna owed the Department of Health and Human Services $1.3 million stemming from a mismanaged clinic the nonprofit ran in Medway.
Manna ultimately closed its Bangor addiction treatment programs and laid off the bulk of its staff, citing negative media coverage and declining public support. Manna continues to operate a daily soup kitchen and food pantry for needy Bangor-area residents.
A message sent to the Maine Department of Health and Human Services on Monday asking how much was owed as of Aug. 1 was not returned. Rae said DHHS holds a $434,000 lien, and that Manna officials continue to try to clarify exactly how much they owe.
In addition, Manna owes nearly $30,000 in outstanding sewer and stormwater charges to the city of Bangor, according to David Little, Bangor’s treasurer and tax assessor. There are five liens against the property, which are expected to be joined by two more before the auction date, according to Little. There are no taxes assessed to the organization because it is a nonprofit.
If unpaid, two of those liens are expected to mature in January, meaning the city technically would take ownership of the property.
The payment of these debts could be worked into any purchase agreement for the site, but Rae said those details are up to the bank and the results of the auction.
The brick building is the former home of Beal College, which sold the facility to Manna in 2004. It has a colorful history, having served as an orphanage, mental asylum, debtors prison and city farm, among other purposes. The property has an assessed value of $680,500 — $388,500 for the building, $292,000 for the land.
The building has been up for sale for four years. Manna put it on the market in 2012 with the hopes of moving to another location. The asking price has dropped over time. The most recent listing was about $900,000, a drop from $1.2 million.
The nonprofit’s financial struggles in recent years also have prompted a push to downsize. Manna says it can’t afford to maintain or heat such a large, aging building.
Rae said the organization received an offer to purchase the property, but the price was significantly below the asking price, and the bank turned it down and decided to pursue an auction instead.
“We need to start over again and give our clients a solid place to go,” Rae said. “We’re excited about feeding people and being able to continue doing what we’re doing in a place we can afford.”
Manna has seen several changes in its structure in recent months since media began reporting on its financial struggles. Rae said he has stepped down from the role of executive director, and is serving as program director. He said he no longer will have oversight of the nonprofit’s business operations.
Rae said Manna’s staff now comprises a single full-time employee, himself, and a part-time maintenance worker. The four-member board has been more active, meeting on a weekly basis.
“We’re holding our heads high and continuing our work here — providing food for people, providing hope, and Bible studies,” Rae said.
Follow Nick McCrea on Twitter at @nmccrea213.