Portsmouth, Kane End Suits Over Failed Development 

The acrimonious saga of the McIntyre development in Portsmouth could be at its end.   

City officials and the Kane Co. have officially ended their lawsuits against each other – legal battles that have been ongoing for over a year.  

Both sides accused each other of failing to hold up their ends of the bargain when the city tapped Kane and its Boston-based development partner to reimagine the long-vacant former federal building in downtown Portsmouth.  

The amount of housing in Kane’s plan caused a voter revolt, ejecting city leaders from their offices and inspiring the new crop of city councilors to pull out of the public-private partnership.   

The city and Kane ultimately found a compromise, though: change zoning in an area near the Portsmouth/Newington line to allow Kane to turn part of an office park it largely owns into apartments.  

That zoning change passed in November, and the lawsuits were formally ended this month after a few other parts of the settlement were caried out: a joint $500,000 donation by the city and Kane to the city’s new affordable housing trust fund, and an agreement that Kane will give the city some land in its pending development for 80 or more affordable housing units.   

As to what will become of the McIntyre building? Local developer Antony DiLorenzo, who also owns Key Auto Group, bought it in 2023 for $9 million and currently leases it to a parking lot operator. He told the Portsmouth Herald over the summer that the site isn’t developable due to height limits and a historic preservation easement that requires much of the Midcentury office building to remain standing.