The Waterville City Council has voted to lease this building at the corner of Front and Temple streets downtown. People’s Hair Salon occupies space along Temple Street and the city would occupy 6,000 square feet to hold council meetings and to serve other functions. The building is shown Wednesday. Michael G. Seamans/Morning Sentinel

WATERVILLE — The City Council on Tuesday voted to lease a building at 46 Front St. for use as council chambers and possibly a community center and cooling and warming center, a decision some residents decried as a surprise move that is fiscally irresponsible and not vetted by the public.

But councilors defended their decision, saying the city has been searching for such a space for the last three years and that real estate negotiations largely must be kept confidential.

The city now holds meetings at The Elm and has the option to buy the Front Street building from 46 Front Street LLC of Scarborough for $1.5 million any time in the next three years of the five-year lease. The city will rent the space for $3,000 a month for the first three months, with incremental increases topping at $6,700 a month toward the end of the contract.

The city now pays $1,500 a month for use of The Elm. But that’s just to hold municipal meetings there each Tuesday.

Councilors, meanwhile, took a final vote Tuesday on a proposed $56.34 million municipal and school budget for 2023-24. They said the property tax of $25.85 per $1,000 in assessed valuation will increase but the exact amount will not be known until after the city’s statistical revaluation is completed in the next several weeks.

The budget includes $100,000 in American Rescue Plan Act money to renovate the Front Street building, which formerly housed the Social Security Administration and before that U.S. District Court. In the 1960s it was home to an automobile garage annex operated by the former Furbush Chevrolet. People’s Hair Salon rents 3,000 square feet of the building and the city would use 6,000 square feet.

Some residents blasted the council for spending money to lease a building and using $100,000 to renovate it, saying the money could be used for schools and the city could hold meetings in school buildings at no cost.

“I think this is a shameful use of money,” Rien Finch said.

But Mayor Jay Coelho and others said that while the building will be used for council meetings, it also may be used as a community center and cooling and warming center, something the public has urged the city to develop during “visioning” sessions” held over the last several months. The Planning Board, community groups, school board and other entities may be able to use the building, which also could serve to alleviate overcrowding at City Hall next door, councilors said. Other possibilities include using it for small elections and for absentee voting, they said. The building has 22 parking spaces.

Coelho said the city looked at many buildings over three years and 46 Front St. was the best for the city and will cost much less than others to renovate.

Resident Lisa Evans said the city has been renting space for council meetings for at least 25 years and she deems it wasted money. She also was skeptical of the process to secure the lease.

“This doesn’t sound transparent,” Evans said. “It doesn’t sound on the up and up.”

Hilary Koch, a member of the city’s Planning Board, suggested meetings can be held in schools at no cost.

A final visioning session is scheduled for 5:30 to 7 p.m. June 29 at the Paul J. Schupf Art Center downtown. Councilor Claude Francke, D-Ward 6, said the public will learn at that session what plans are being considered. He said that while he appreciates it may seem the building plan emerged out of left field, it really has been carefully thought out and important for moving forward.

Councilor Thom Klepach, D-Ward 3, agreed, saying everybody in the room wants to be fiscally responsible and sometimes investment in potential is the fiscally responsible thing to do.

“Personally, I have confidence in the plan,” he said.

Planning Board Chairwoman Samantha Burdick said she wants to see a more concrete plan. While she understands why the municipal budget has increased, leasing a building with the option to buy is asking the public to shoulder another increase, she said.

Council Chairwoman Rebecca Green, D-Ward 4, reiterated that the Front Street property is the best option and officials will explore how it can be used to meet the needs of people in the city.

“This is responding to what we’ve heard from people in Waterville about needing more flexible space for the city,” she said.

Councilor Brandon Gilley, D-Ward 1, was the lone dissenter in the 6-1 vote to approve the building lease.