By Nate Jones
Staff Writer
Since 1999, the 120,000-square-foot office building on Running Hill Road in South Portland has housed the East Coast headquarters for the international company Fairchild Semiconductor. Last year, the city received nearly $80,000 in business equipment taxes from the company, revenue that could be lost if Fairchild relocates to Scarborough next year.
The building – built for UNUM in 1986 – and the surrounding 12 acres is currently owned by the Dead River Company, and the lease with Fairchild is scheduled to expire at the end of 2009. Dead River Spokesman Anne Littlefield said Fairchild had not given notice that they were going to move, but she was “aware they were looking” and had made several proposals to encourage them to either extend the lease or possibly build a new structure.
“I will fill it if I have to,” she said of the structure.
New England Expedition LLC Spokesman, Gene Beaudoin, – the developers behind the Gateway at Scarborough project, which includes the 130,000-square-foot Cabela’s retail building – said a sketch of a new 90,000-square-foot Fairchild Semiconductor office building is expected to be considered at the June 23 Scarborough Planning Board meeting.
“We’ve been talking with Fairchild for some time,” Beaudoin said. “At this point they’re still in the design phase.”
Scarborough Economic Development Corporation (SEDCO) President Harvey Rosenfeld said the new building could be one of the largest office buildings in the town and is the type of development SEDCO originally envisioned within the Gateway project. Although the Cabela’s building has attracted other retailers, he said it’s important to reserve space for high-end office needs, as there is already close to one million square feet approved for retail space in Scarborough.
“It’s time to now start on something else to diversify the economy of the town,” he said. “The obvious financial benefit is the taxable value of a first class office facility.”
South Portland Assessor Elizabeth Sawyer said the city would continue to collect roughly $241,000 in real estate taxes on the building – purchased by the Dead River Company for $15 million in October 2006 – and the surrounding property regardless of whether or not it was occupied, but would not collect any business equipment or personal property tax as long as it remained vacant.
“I’m sure [Dead River] knew of the expiration of the lease agreement when they purchased the building,” she said.
Fairchild Semiconductor spokesperson Patti Olsen said the Scarborough location is “one of many” options they are still considering, including possibly extending the current lease with Dead River. 
One of the attractions of the Gateway development is the new building would be constructed to LEED “silver” standard, making it one of the most energy efficient buildings currently being built, she said.
“We are hopeful everything will work out,” Olsen said.
Beaudoin said the building could be built across the street from the Cabela’s store, south of a pond that is yet to be constructed. There are three other companies interested in office space within the Gateway – with needs ranging from 55,000 to 100,000-square-foot buildings – and although there is not enough space for them all, Beaudoin said they are still looking for interested parties.
“It’s a good problem to have,” he said.
While Fairchild is looking at different locations to house the 300 employees currently working at the South Portland building, Olsen said there are no plans to relocate their manufacturing facility on Western Avenue with 600 employees.
“That one’s not moving,” she said.
Should the project receive approval from the  Scarborough Planning Board, Beaudoin said construction could start in October.