A lawyer for Ocean Properties said the developer decided to drop the redevelopment of the city's Maine State Pier because it had too many competing projects.

"A business decision was made that the plate was full and there weren't the resources, particularly the human resources, available" to continue with the project, said Harold Pachios. He said the decision was made by its partners this week, and city councilors said they first learned about it late Thursday or this morning.

Pachios said financing, even in this tight credit market, was not a factor for Ocean Properties. He said it was simply a matter of too many projects moving forward at once.

Pachios said he did not know how much Ocean Properties had already invested into the $160 million project.

Mayor Jill Duson officially announced the news at a City Hall press conference, saying "the city is disappointed, but we accept Ocean Properties' decision."

Duson said the city was now back to "square one" in its efforts to revitalize and redevelop the aging pier. "We'll figure it out," she said.

10:40 a.m.

The city is again without a developer for the Maine State Pier, considered its prime piece of publicly owned property.

Ocean Properties has backed out of negotiations with the city on a $160 million deal that would have put a hotel, office, park and parking garage on and around the pier.

The decision is the latest development in the city's two-and-a-half year search for a state pier developer.

The city is holding a press conference at this hour to discuss the company's decision.

The New Hampshire-based Ocean Properties is the second developer to walk away from negotiations with the city, which has been searching for a company to make millions in repairs to the state pier in return for a lease and development contract since 2006. The Olympia Cos. of Portland opted to halt negotiations on the project in November.

Ocean Properties is headed by Bangor native Tom Walsh. Robert Baldacci, brother of Gov. John Baldacci, was part of the team that pitched Ocean's original pier proposal and is currently a consultant for the company. Baldacci is now part of an investment group that wants to purchase MaineToday Media, Inc., which includes the Portland Press Herald.

Gregory Rec/Staff Photographer
Ocean Properties has backed out of negotiations with the city on a $160 million deal to develop the Maine State Pier into a hotel, offices, a parking garage and park. Harold Pachios, an attorney representing Ocean Properties, and Jill Duson, the city's mayor, talk to the media at Portland City Hall today.

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