At the December 1 Town Meeting, a misunderstanding arose about how the Hawthorne-by-the-Sea restaurant had been funded for the past three years. The town confirmed that dedicated funds had been set aside to cover the costs.

On December 1, Town Meeting Members voted to allow the Select Board to lease the former Hawthorne-by-the-Sea restaurant for up to 30 months “to limit carrying costs and protect a key community asset while long-term planning continues.” During discussion, some members suggested that Swampscott had not recouped tax or rental payments from the Athanas family, who continued to operate the restaurant after the town purchased the property three years ago.

Instead, those costs were covered through funds set aside in a use-and-occupancy agreement the town entered into with Anthony’s Hawthorne, Inc. on December 9, 2022.

“In accordance with the terms of the purchase and sale agreement, buyer (Swampscott) has withheld the sum of $125,000 from the purchase price of the premises for the purpose of ensuring that: sellers (Anthony’s Hawthorne Inc.) vacate the premises at the end of the occupancy period and deliver it free and clear of all tenants and occupants, vehicles, equipment, materials or other personal property,” the agreement reads.

The sellers were required to pay the town $2,000 per month for use and occupancy and to cover all utility costs, including water, electricity, and gas, for as long as they remained on the premises.

Over 32 months, the $2,000 monthly rent totaled $62,581 through December 9, 2025. Utilities amounted to $52,485.03 in principal and $2,253.67 in interest. Personal property taxes totaled $576.13, including $541.67 in principal and $34.46 in interest.

In all, costs associated with the restaurant reached $117,896. After applying the $125,000 escrow deposit, $7,104 remains, money that will be returned to the Athanas family.

“If sellers vacate the premises on or before the termination date in accordance with this agreement, and are in compliance with the terms of this agreement, the escrowed funds (or any balance remaining) shall be paid to sellers within 30 days following the termination date,” the contract states. 

This clarifies that residents’ tax dollars were not used to cover the property’s costs over the past three years.

What’s Going On With The Property?

At a Special Town Meeting in June 2022, voters overwhelmingly approved acquiring several properties, including the Hawthorne parcel and the Archer Street project. The article authorized the Select Board to acquire 149–169 Humphrey Street by gift, purchase, or eminent domain for municipal use, passing 214–3.

A community brainstorming session in January 2023 identified public community space as the top priority, with strong support for open space and green areas. Multi-use space ranked second, while “iconic” concepts were dominated by open-space ideas.

A town survey presented at the April 3, 2024 Select Board meeting found that residents viewed a public park and open space as the most important use of the property. Waterfront access was considered important, while revenue generation was less important and off-street public parking “not important.”

A preliminary design for a glass-encased Swampscott Public Library was unveiled in April 2024. The initial estimated cost of the preliminary design was around $30 million, according to what former Select Board Member Peter Spellios said at the time.

The plan was met with strong opposition from residents, many of whom said at the time that they felt blindsided by the proposal, and the plan was considered a dead end after a public forum in May 2024.

The Select Board created the Hawthorne Re-Use Advisory Committee in February 2025 to develop guidelines and gather community feedback before making recommendations.

At two community meetings, residents emphasized creating “a place to go,” prioritizing pedestrians, and addressing the short lifespans of businesses on Humphrey Street. Other ideas included community spaces for food courts, cafés, artisans, and events.

The committee recently agreed to present Plan G1 to the Select Board. The plan features two rows of buildings, totaling around 25,000 square feet if two stories, set perpendicular to the road with a 40-foot opening to maintain views into the courtyard and open-space area. The model includes roughly 28 parking spaces.

A few weeks prior to the Hawthorne Re-Use Advisory Committee’s presentation, Town Administrator Nick Connors informed the Select Board on November 6 that he had learned of the Athanas family’s decision to vacate on October 23, discovering that some of their personal items were being auctioned that same weekend. The Athanases said the property was sold three years ago and that they are “ready to move on” as the town advances its plans.

This in turn led to the Town Meeting discussion. Article No. 10 authorized the Select Board to issue a Request for Proposals (RFP) during the interim planning period.

“Article No. 10 gives us the time and flexibility to keep this landmark protected, active and productive while we finish that work together,” Connors said, adding that by keeping the Hawthorne restaurant open it allows for a “dual-track” approach through  short-term activation and long-term redevelopment. “It’s both fiscally responsible and community driven, ensuring that we generate value rather than costs while we continue forward with this plan.”

Select Board Chair Katie Phelan emphasized that the short-term solution is not a replacement for long-term planning but is meant to “run tandem.” Vice Chair Doug Thompson said the board is “trying to put together the pieces” needed to build a coalition that will support the capital expenses required for the eventual redevelopment.

The RFP was issued last week. It will close on Friday, January 16. 

Connors said at the December 3 Select Board meeting that a coordinated site visit will be scheduled “so everyone who is interested in responding can come at once.”

After the RFP closes, a public bid review will be conducted. Connors said finalists will present their plans “if that is appropriate based on the responses that we get.”

A recommendation is expected to reach the Select Board by early February.

Meanwhile, the town is also exploring the potential purchase of the adjacent St. John’s Church parking lot, which officials say could “unlock the full potential of the site” by enabling a balanced plan that includes green space, parking, and revenue-generating redevelopment.

“The additional time will also allow the town to continue negotiations with the Archdiocese of Boston for the possible purchase of a portion of the parking lot,” the Select Board’s letter to Town Meeting Members read. “This potential acquisition could unlock the full potential of the site, enabling a balanced plan that includes new public green space, appropriate parking and revenue-generating redevelopment.”