Pennell Building Pennell Building. File Photo (Photo Nathan Tsukroff)

The Pennell property is located on Main Street and includes the former Town of Gray High School, the Newbegin gymnasium and a small building called the Laboratory building, along with ballfields at the rear of the gym. The property has been held in trust for over 120 years, with the local school district, MSAD 15, acting as trustee since 1965. The school district incorporates the towns of Gray and New Gloucester.

Nearly two years ago, The Gray Public Library Association had proposed to take over the property and refurbish the main building for the town's library, in a deal that would have seen the town essentially renting the property for 99 years at a cost of one dollar. Gray citizens voted in a 2005 nonbinding referendum to direct the Town Council to work with the GPLA to explore the idea.

Local citizens Michael Salvetti and John Welch raised a red flag about the proposal, contending that the school district should return the property to the town outright under Maine's school closing laws. MSAD 15 stopped using the property in 2003.

Under terms of the original will in 1884, Henry Pennell bequeathed a building and an acre of land to the 'inhabitants of said town of Gray, in trust' for educational purposes. Additional deals over the next several years expanded the property in trust to its present configuration.

The Superior Court ruling reviewed arguments from both the town and MSAD 15, determining that, despite a temporary transfer of the property back to the town between 1954 and 1961, MSAD 15 is still the trustee and may sell the property outright at fair market value. The ruling makes it clear proceeds from the sale must be used for educational purposes as indicated in the original will. The property had been transferred back to the town in order to allow the town to borrow money to refurbish the buildings.

However, in 1961 another court action returned the property to the trust. The recent court ruling said there had been no appeal of that decision by the town, leaving the trust as owner of the property. An appeal more than 40 years later is not allowed, the ruling stated.

Gray Town Council Vice-Chair Andrew Upham said the council has not had time to discuss the court decision. Shortly after the 2005 referndum, Upham voiced concerns about the possible rental of the property for use as a library, and requested the court ruling to determine actual ownership. 'From my perspective, I think we've done what we said we needed to do,' he said Monday night. GPLA President Lynn Olson said the association is no longer considering moving the library to Pennell.

MSAD 15 Superintendent Vicky Burns said the Board would wait to see whether the Town of Gray was going to appeal, but would begin immediately to explore its options.