Mike Friedland, co-owner of The Lumbery, said he hopes his ordeal with the town will become “a teachable moment so other businesses don’t have to go through what I went through.” Drew Johnson / Sentry

The town of Cape Elizabeth won’t be reimbursing The Lumbery the $9,500 in legal fees it racked up to fight a lawsuit filed by the town.

The Town Council, which last fall dropped the $4.5 million suit against the hardware and lumber store for zoning violations, considered and voted 4-3 last week against reimbursing the $4,750, or half the fees, The Lumbery had requested.

The Lumbery was put up for sale earlier this month.

“We’re not necessarily selling because of the lawsuit, but it certainly didn’t help our position,” co-owner Mike Friedland said Monday at the store in the town center.

The business had been in and out of compliance with its site plan since 2020 because it displayed merchandise, such as planters and picnic tables, in front of its store. Each time they moved merchandise around out front, they were required to apply for an amendment to their site plan. The business adjusted its site plan multiple times before it became too costly due to design work, according to Friedland. Under the lawsuit, they were fined $100 to $5,000 for each day they were out of compliance.

Councilors Jeremy Gabrielson, Caitlin Harriman, Penny Jordan and Susan Gillis, who were opposed to reimbursing The Lumbery for legal fees, didn’t comment on the matter at their July 8 meeting, but had noted at previous meetings that doing so could set a precedent for other businesses out of compliance with town ordinances.

Councilors in favor of reimbursing half of the fees said what unfolded with the Lumbery was a “unique” instance.

“I don’t want to put the town on a slippery slope, but I think this situation is so unique and so identifiable that I don’t think we run the risk of doing that,” Councilor Stephanie Anderson said.

“I never thought they’d reimburse me,” Friedland said. “It would be great, but since I was resigned to losing, I was just really hopeful that change would occur … I was hoping it would be kind of a teachable moment so other businesses don’t have to go through what I went through.”

Residents had rallied in support of the business last fall, calling for the town to drop the lawsuit. The council first called for mediation between the town and business before dropping the lawsuit in November.

Interim Town Manager Michael McGovern emphasized at the July 8 meeting that while the lawsuit was criticized by some residents, town staff were correct in taking action because The Lumbery had been non-compliant numerous times.

Since dropping the lawsuit, the town and the business have worked together to bring The Lumbery into compliance.

“We sat down with the Cape Elizabeth town attorney and we created an amendment to the outdoor display ordinances that would be more pragmatic,” Friedland said.

The amendment allows businesses in the town center to display products outdoors in designated areas. The Town Council passed the amendment in June and it took effect last week.

Selling The Lumbery gives the business an opportunity to grow, Friedland said.

“We could improve upon our land, we could introduce classes and workshops, which are needed, we could expand exposure to Boston, New Hampshire,” he said, “but we’re sort of financially tapped.”

The pending lawsuit was also “draining emotionally” and time-consuming, he said.

He hopes someone will either purchase the business or come in as an investor or business partner to deliver on his vision for growth.

“We’ve worked out all the bugs, we’ve got a great staff, we’ve figured out who our market is, we’ve figured out what sells best and now we just need to sort of launch it,” Friedland said. “That’s why we’re putting it out there: because we don’t have the means to launch it.

“There’s untapped potential.”