AUGUSTA -- The state's highest court ruled Tuesday the sale of part of the old Cony High School can go forward, paving the way for a new Hannaford supermarket.

The Maine Supreme Judicial Court upheld a lower court ruling that determined selling the 1964 addition of the former high school, and dedicating $1.5 million in proceeds to the new Cony High School, would advance -- not violate -- Daniel Cony's purpose of educating the youth of Augusta.

Daniel Cony conveyed the land under the former Cony site in 1815 "for the use and benefit of aiding and supporting a female academy on the site."

Later, in 1908, the deed to the property was given to the city in a trust, with the stipulation it be used as a high school, athletic field and "pleasure ground."

The city filed suit to have those deed restrictions lifted because the site, officials said, is no longer suitable for a high school and a new Cony High School had been built about a mile away.

But some heirs of Daniel Cony intervened, and appealed a lower court ruling allowing the city to sell the site.

Tuesday, justices ruled in favor of the city, saying Daniel Cony's interest in educating the youth of Augusta would be best served in allowing the sale to go through, with the proceeds to benefit students at the new Cony.

"The city of Augusta has undergone drastic changes, unanticipated at the 1815 creation of the trust, including changes in state requirements, traffic patterns, the size of the community, the needs of the city, site safety, and parking availability," the court's 19-page decision states.

"The 1964 addition has fallen into disrepair. The fact that operation of the high school on these premises is no longer permitted is sufficient to permit the proposed modification, which will further Cony's overriding purpose of educating the youth of the city."

City attorney Stephen Langsdorf and City Manager William Bridgeo said the closing paperwork between the city and developer Boulos Co. has already been filled out and is waiting in escrow.

The sale, Langsdorf said, could close in about two weeks.

"I couldn't be happier," Mayor Roger Katz said of the decision. "Augusta will now see the first platinum green supermarket in the world. We will get some needed revenue to help pay for the new high school. And this paves the way for some much-needed improvements to our east side rotary.

"While I appreciate the passion of those who oppose this project," the mayor said, "I believe the people of the community as a whole will see the benefits."

The deal does not involve the historic flatiron section of the former Cony, which the city is keeping. A city committee has been empaneled to find a new use for it.

Hannaford officials have said they intend to have the proposed new supermarket certified by the U.S. Green Building Council as a "platinum-level LEED building," its highest designation. Hannaford, officials said, would be the first supermarket to meet that industry standard.

The court decision appears to resolve a four-year dispute about how to reuse a large portion of the abandoned high school site.

Langsdorf said the court has not approved a plan for how the $1.5 million in sale proceeds should be used to benefit the new Cony High School. The city will continue to work on that agreement, he said, which would need to be approved by Justice Donald H. Marden.

Patricia Marvin, of Winthrop, an heir of Daniel Cony, was the only intervenor remaining active in the case. Marvin's attorney, Eric Mehnert, of Bangor, said Tuesday he had not yet had a chance to talk about the court decision with Marvin.

He said the position they took from the start was this: Daniel Cony intended the property be used specifically as a high school, not just for the general benefit of education.

"As trust law stood when (Daniel Cony) bequeathed it, it wasn't a general intent it be used for education," Mehnert said. "It was specifically for a high school and pleasure grounds."

The other intervenors in the case essentially dropped out after reaching an agreement with the city and attorney general that would have directed proceeds from the sale to the new high school, scholarships and the flatiron building.

Winthrop attorney Robert Fuller, an intervenor and Cony heir, said he was pleased with the outcome of the case.

"I'm glad this contentious and divisive case... is at last concluded," Fuller said. "It's now time for everyone concerned about the future of public secondary education in Augusta to accept the ruling.

"The focus now should properly be on how best to administer the $1.5 million which Hannaford Brothers has agreed to pay the city of Augusta."

Fuller said he does not believe Daniel Cony was as attached to the idea that the site be specifically used for a high school, as much as he wanted to make sure the gift to the city helped create a place to educate young people in Augusta.

"While I don't purport to speak for my ancestor, I suspect location would be of no concern to him," Fuller said.

Langsdorf noted Tuesday's ruling was unanimous.

"This caps four years of legal battles, including three different court decisions, all in our favor," Langsdorf said.

Bridgeo said between lost property taxes and legal fees, the legal battle probably cost the city about a half-million dollars. "This litigation over the Hannaford supermarket has been the most difficult and protracted legal issue that I've seen in 30 years as a city manager," Bridgeo said. "It was baseless from the get-go, and it's a tremendous relief to have the law court validate the city's long-standing position on this."

Keith Edwards -- 621-5647

kedwards@centralmaine.com