TOWN OF GRAY
MARCH 29, 2011
Special Town Meeting Minutes
Councilors Peter Gellerson, Matt Doughty, Matt Sturgis, Mark Grover, Margaret Hutchins
Town Manager Deborah Cabana
Others present and speaking: William Dale, Leo Credit, Rick Licht, George Thebarge, James Monroe, Fran Monroe, Al Palmer, Gary Foster, Walter Hebolt, James Ward, James Saffe, Anne Gass, Heath Emery, Marcel Vachon, Gene Tarsetti, Terry Tarsetti, Chris Dombrowski, John Scheckel, Pam Wilkinson, Andy Upham
Town Manager Cabana welcomed everyone and opened the meeting.
- To choose, by ballot, a Moderator to preside at said Special Town Meeting.
It was moved and seconded to nominate William Dale as moderator.
It was requested that 5 voters cast their votes. William Dale was elected and was sworn in as moderator for the meeting.
It was moved and seconded to nominate Gary Foster as deputy moderator
It was requested that 5 voters cast their votes. Gary Foster was elected and sworn in as deputy moderator.
William Dale welcomed everyone.
William Dale gave an overview of the meeting procedures and voting rules. He indicated that there will be a public hearing prior to voting on the warrants. He stated that they will follow the Maine Moderators Rules.
He asked if there was anyone who may be asked to speak who are not Gray residents
Ron Epstein, George Thebarge, Walter Hebolt, James Ward, James Saffe, Leo Credit presented themselves.
It was moved and seconded to allow the above listed people to speak.
Motion passes
William Dale gave an overview of the process should a vote be close.
Fran Monroe stated that she has submitted a written motion to have the vote in the warrant items be a written one.
William Dale stated that Fran Monroe was out of order at this time and she can present this request at the time of voting.
Leo Credit, President of the Gray-New Gloucester Economic Development Corp. He gave a PowerPoint presentation outlining their request which included the objectives, the 5 outcomes they see with this request. The request also includes the issue of attracting new businesses, increasing the Town’s revenue base and that it is good for the community. He outlined the total taxable property and the revenues generated. Gray’s residential growth is faster than the state average. He stated that expanding the business tax base is important. He outlined how Pineland in New Gloucester has benefitted this town and the increased business tax base. He indicated that Gray is in competition with other business parks in other communities. Leo
Credit outlined the challenges the businesses face in developing or expanding their businesses. He stated that the additional infrastructure that businesses need to do can often be a deal breaker on whether or they want to develop in Gray. The businesses at Northbrook provide good paying jobs and others that come in can do the same. Leo also stated that the current TIF has been good for economic development in the Town. He indicated that if the TIF is extended, the benefit of increased tax revenue and creating jobs is significant to the Town.
Rick Licht, of the CEDC gave an overview of the master planning for the Area 3 development including the access rights. He presented information and map on the development in relation t the Town’ Master Plan. He indicated that the limitation is road access. The MDOT built the bypass with no additional entrances other than what is currently there.
Options for changes include extending Northbrook Drive, or move the entrance further up the bypass. This plan cannot happen until the state approves, and the area is rezoned, but by doing so now, it can be of benefit in future planning.
The TIF extension will help with these access rights in developing this area and will not cost the Town anything.
The agreement also provides $50,000 for marketing the area.
Rick Licht also indicated that Enercon wants to expand and is willing to stay in Gray if the TIF is approved and there is another company interested in developing in Northbrook as well.
Leo Credit stated that there is no cost to the Town and can be of benefit to the future.
Councilor Matt Sturgis gave a PowerPoint presentation on the basic description of what a TIF is and how it works.
He also outlined how the TIF has worked in Gray. If the Northbrook area was not a TIF zone, there would be a decrease in state school aid, and revenue sharing. Under a TIF the increased valuation is sheltered and the money is used for economic development. Current TIF funds have been used for Clark Block, McConkey Rd and water main issues under the bypass without the TIF the Town would have had to pay for this.
He outlined what the infrastructure costs and projects to date (Page 2 bottom slide of PowerPoint handout). He stated that 2 companies are looking to develop in the park and the TIF would enable this. (Page 3 of PowerPoint handout citing a chart describing with and without extensions). He indicated that Northbrook total investment would not be covered without the TIF extension. Even with the extension, Northbrook would not recoup their total investment.
Councilor Sturgis also presented information on:
Warrant Article 3 (Page 4 of PowerPoint handout). He stated that it is important that the funds are to be used for projects within the TIF criteria.
Warrant Article 4 – Individual TIF packages can be created on a smaller scale for other incoming business.
Warrant Article 5- BETE tax information on business equipment. This is a tool that the Town can use to attract further business.
William Dale asked if anyone in the public would like to speak.
James Monroe asked about the 90/10 tax split. He asked what percentage of tax collected is held in the tax escrow account as other data has shown that it is 70/30.
George Thebarge stated that in 1997 that stated that a formula was developed as a sliding scale with the first $2.5 million and then beyond that amount.
James Monroe asked that if there is a tax reimbursement to the business, then where is the tax base. While the valuation will have increased, he asked where the expansion and that the Town’s reimbursement share is at it is limited and he also asked how it can be used. He commented on recent other votes in other communities where this was used properly.
Anne Gass stated that in other towns there are also uncertainties. She stated that she supports the TIF. She stated that voters are often asked to vote on concrete issues, but there are times when a vote is required for a long term investment and vision. Pennell and the Northbrook TIF are good examples of this. She believes that this is good public/private partnership and that the Town has not paid anything in the development of the park.
Heath Emery, 46 Shaker Rd, a farmer at this location, gave the Hall family perspective on Area 3 of which their property is located. He stated that they are concerned about this. He stated that in conversations that the land is private and will not be taken by eminent domain.
He asked why no one has spoken to the area neighbors and stated that the Hall family has no plans to sell their neighboring property. He also spoke with Al Grover and that no one has contacted him about purchasing their property.
Heath Emery stated that they don’t want potential business park businesses to complain about the farmland next to them (odors and the like) similarly to the issues in Westbrook with IDEXX and their neighbors.
Al Palmer stated that his wife owns the largest area of land in Area 3. The farm has been in the family for over 140 years. It is 215 acres in size. He stated that they only heard about this meeting last Thursday. He stated that CEDC invited Northbrook but did not invite any area neighbors. No one asked nor communicated with them. He would have preferred that the Town speak to them. He stated that he supports the TIF provided that their property is not considered a part of it. He stated that they want to keep their land as farmland. He believes that there is a better to use the funds and asked why the Town is not developing other properties (Rite-Aid building for example)
Marcel Vachon stated that no one wants to pay more taxes and should more businesses leave, services are cut etc. He stated that the TIF will also help create jobs and these people make use of the local businesses. He supports the TIF extension.
Gene Tarsetti owns 72 acres in Area 3 and they were not notified about this nor has interest in selling. He commented on EM Solutions and that there are a number of restrictions making developing the lots impossible, as well as comments on access road issues. He stated that his experience with Northbrook is that they are only interested in themselves.
Jim Ward a business owner on the Shaker Rd moved his business to Gray in 2005. He stated that due to this, they are outgrowing their space. He stated that they consider themselves a good business with good jobs and benefits. The available spaces in the area are limited and looks forward to this as an option for expansion.
Terry Tarsetti asked why the land has been for sale for so long has not sold. He stated that there are many empty businesses in the area. She stated that what has been developed has been a detriment to the area.
Chris Dombrowski stated that Northbrook has nothing to do with Area 3. It is in the Town’s best interest to have a plan and if abutters do not want to sell they don’t have to. Northbrook will not be taking any of the land.
John Scheckel stated that they moved here 4 years ago for the quality of life. He stated that the Master Plan was the reason that they invested in their property. He stated that everyone shares in the investment. The TIF extension is essential to the overall economic development in the Town and he supports the TIF extension.
Fran Monroe stated that presentations at Town Meetings describing the TIF extension, always includes Area 3. She stated that if Area 3 is not developed then Northbrook will move. She commented on the TIF extension which includes marketing etc. She asked whether or not there will be sufficient funds for public improvements. Northbrook would have control. She stated that the Council has given up their decision making role to the GNG Economic Development Corp. and described who would make up this body. She indicated that the Town should know the members’ background and how they are funded. She stated that for the last 14 years the Town has been promised economic development and new jobs. She also stated that the 2 businesses who want to
move here have not appeared in public. She asked where the TIF funds will come from for marketing and the like.
She also believes that the Town has put a burden on the citizens to make this decision. There has not been an audit of this TIF account. She stated that what has become difficult is using tax dollars to fund dreams. She urges the group to veto this motion and come back with more specific details. She stated that since Town Meeting has been eliminated, it should go to ballot.
Pam Wilkinson stated that she works for companies who are principals of Enercon. The company has chosen to stay here and keep 9 employees working. She stated that her wages are higher, doesn’t have to travel to work. She patronizes local businesses by working here. She believes that Enercon has made an impact and that this is required to bring more business. She compared her involvement in the Sebago Lakes Association and asked what would have happened without tax support and the lake values impacting the Town. She believes that by not supporting the TIF, it will send a message that the Town doesn’t support business.
Gary Foster stated that there have been discussions that much of the Area 3 property is not for sale but that it appears that the Town will acquire easement rights. He stated that the Town cannot take private property and transfer it to a private entity. He stated that it is unlikely that another curb cut will be permitted. He believes that the projections are based on access to Area 3
Rick Leavitt stated that there is no obligation for the land owners to sell and urges support for the TIF.
Heath Emery commented on the 2 lots and that Al Grover has had several opportunities to sell the land but the restrictions make it impossible to sell.
Rick Licht commented that the process is that the TIF extension is to help the expansion, but that the Area 3 are simply designs and ideas. All the stakeholders would be consulted as this progresses in the future. He stated that he is not a paid consultant but a volunteer resident.
Al Palmer reminded the group that Article 3 is the issue of the Master Plan.
Leo Credit stated that the GNG Economic Development Corp is a organization trying to bring businesses to Gray. They are non-paid and have no funding and exist to bring business here.
James Monroe stated that at the last Council meeting he asked who is paying for this and where the money is coming from. No one answered. He believes that this is unacceptable. He stated that the Town Manager indicated at a CEDC that each side will pay its share.
He commented on page 7 of the letter of agreement outlining who will be paying.
- To see if the Town will vote to amend the Northbrook Business and Industry Campus Municipal Development and Tax Increment Financing District Development Program (the “Original Development Program”) by adopting the First Amendment thereto in the form presented at this Town Meeting and incorporated herein by reference, and by making the findings set forth therein, and to see if the Town will further authorize the submission of such First Amendment to the Commissioner of the State of Maine Department of Economic and Community Development for approval, and to see if the Town will further authorize execution of an amendment to the Credit Enhancement Agreement with M36 Associates, Inc. (a/k/a NorthBrook) reflecting the terms of such First Amendment and in form to be approved by the Town Council, execution of such
amendment to the Credit Enhancement Agreement to be subject to the condition that, simultaneously with the execution thereof, NorthBrook shall grant access rights, on terms satisfactory to the Town Council, to facilitate development of the so-called Area 3 land located westerly of the Maine Turnpike Exit 63, and along Route 202 and the Gray Bypass.
It was moved and seconded to waive the reading of Article 2.
Motion passes.
Fran Monroe motioned to have a secret ballot vote.
It was moved and seconded to discuss the secret ballot issue.
Fran Monroe stated that all 4 Warrant articles should be voted in a block and voted upon once.
William Dale asked for vote for a paper ballot.
Motion fails.
Andy Upham commented on the last sentence of Article 2 and stated that the owners of land in Area 3 have not been a part of the discussion. He asked the Council why. He stated that the land owners have indicated that they have no intention of selling their property. He stated that the Council should be embarrassed to present this and urges people to vote no.
Councilor Sturgis stated that he is not embarrassed by presenting this to the voters. A few years ago a TIF extension was requested and he didn’t vote for it at that time as there were no benefits. This TIF will be of benefit. The Town will only gain access easement point. It may never be employed but this is not intended to take abutters property.
He stated that there has to be $3million new investment to the Town for the benefits of the TIF to work.
He also participated in the Pineland TIF and that this request is far smaller and may take more time, but there isn’t the investment money that the Pineland developers had. He commented on the benefits and opportunities for the TIF and supports the TIF.
James Monroe stated that TIFs should help businesses get started and help recover some of their costs. He stated that there is no indication at Northbrook that there are opportunities. He believes that if they are asking the Town to invest, there should be more effort on their part.
He also commented on the 5 member board referenced in the document is questionable as to the makeup of the group. He stated that there is a provision that if there is $3 million development in Area 3 then the TIF goes into effect but Northbrook would benefit from this. He stated that Northbrook is the only facility in the Town that in essence doesn’t pay taxes as most of their share is reimbursed. He is offended that they would make such a request when haven’t spoken before anyone.
It was moved and seconded to move the question.
Motion passes.
It was moved and seconded to approve Article 2
The vote was 69 Yes / 41 No
Article 2 passes.
- To see if the Town will vote to amend the Northbrook Business and Industry Campus Municipal Development District and Tax Increment Financing District Development Program by adopting Addendum #1 to the First Amendment thereto in the form presented at this Town Meeting and incorporated herein by reference, and to authorize the Town Council to enter an agreement with M36 Associates, Inc. (a/k/a NorthBrook), on terms satisfactory to the Town Council, providing for economic development, marketing and master planning and requiring the Town to appropriate $100,000 out of the Town’s share of revenues from the Northbrook Business and Industry Campus Municipal Development and Tax Increment Financing District, as amended, with Northbrook being obligated to provide $100,000 in matching funds, to pay the costs of: (a) developing
a master plan for development of the so-called Area 3 land located westerly of the Maine Turnpike Exit 63, and along Route 202 and the Gray Bypass, for commercial, industrial, and hospitality uses and (b) a marketing program to be conducted in cooperation with NorthBrook and the Gray New Gloucester Development Corporation, such funds to be expended as determined appropriate by the Town Manager for the foregoing purposes.
It was moved and seconded to waive the reading of Article 3
Motion passes.
James Monroe stated that this is a significant amount of money.
Gene Tarsetti stated that it is clear that landowners in Area 3 do not wish to sell the land so this is a waste of money.
Rick Licht conceded that he will vote no in support of Al Palmer’s comments
It was moved and seconded to approve Article 3
Motion fails
Article 3 is defeated.
- To see if the Town will vote to amend the Northbrook Business and Industry Campus Municipal Development and Tax Increment Financing District Development Program by adopting Addendum #2 to the First Amendment thereto in the form presented at this Town Meeting and incorporated herein by reference, and make the findings set forth therein, and to further authorize submission of such amendment to the Commissioner of the State of Maine Department of Economic and Community Development for approval, and to further authorize the Town Council to authorize execution of additional Credit Enhancement Agreement(s) with one or more developers of lots within such District, providing for payment by the Town to such developers of up to 100% of the Town’s share of the tax increment revenues from such District as an incentive for business creation
and job development within the District.
It was moved and seconded to waive the reading of Article 4.
Motion passes
It was moved and seconded to accept Article 4
The vote was 60 Yes/ 36 No
Article 4 passes
- To see if the Town will vote to authorize the Town Council to enter one or more agreements with one or more businesses in or developers of property within the NorthBrook Business and Industry Campus, pursuant to which the Town may pay up to 100% of the actual amount received by the Town from the State of Maine, pursuant to the Business Equipment Tax Exemption “BETE”, 36 M.R.S.A. chapter 105, sub-chapter 4-C, with respect to exempt business equipment located within such Campus but only with respect to personal property first located within such Campus after the date of this Agreement on newly developed lots.
It was moved and seconded to waive the reading of Article 5
Motion passes.
James Monroe asked who gets the BETE funds, the new business or Northbrook.
George Thebarge said it is the new companies coming in.
It was moved and seconded to accept Article 5
Article 5 passes.
It was moved and seconded to adjourn
Motion passes.
The meeting ended at 9:13pm.
Minutes approved and accepted April 19, 2011 by its Town Council:
_____________________________ ___________________________
Peter Gellerson, Council Chair Margaret Hutchins, Vice Chair
______________________________ ___________________________
Mark D. Grover Matthew Sturgis
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Matthew Doughty
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