Hartland tannery jobs saved
February 13, 2011
In November 2010 Prime Tanning, the largest employer in Hartland Maine, filed for federal Chapter 11 bankruptcy protection, potentially placing 170 jobs in the community at risk. The Town of Hartland had participated in a financially disastrous bankruptcy workout for the same mill just five years earlier, in 2005. This time, the Town hired Eaton Peabody to better protect the Town’s financial interests.
Eaton Peabody attorney Nate Martell headed the Town’s negotiations in federal bankruptcy court, with assistance from attorneys Erik Stumpfel and Tom Brown. Eaton Peabody attorneys Andrew Hamilton and Heather Parent coordinated discussions with the Maine DEP concerning environmental issues relating to the bankruptcy and operation of the plant. The resulting agreements were voted on at a special town meeting in Hartland on February 12, 2011. An article in the Waterville Sentinel reported the results:
Hartland tannery jobs saved
Voters OK deal to keep town’s endangered, largest employer open
HARTLAND — The sale of the town's largest employer cleared its final hurdle Saturday when residents voted 196-15 to approve a deal with Tasman Industries about operation and cost-sharing of the community's wastewater treatment facility.
Hartland residents celebrate the waste water treatment agreement with Tasman Leather Group L.L.C., which passed a vote Saturday. The deal was the last step in the sale of Prime Tanning, and will save 169 jobs.
Residents gather at the Hartland Town Hall on Saturday to decide whether to enter a waste-water treatment agreement with Tasman Leather Group L.L.C. The measure passed 196-15.
Approval of the deal resulted in the closing of Tasman's $6.5 million, court-approved purchase of the leather-making business.
However, the "big thing" is that the deal keeps 170 people from losing their jobs, said Phil Congdon, commissioner of the state Department of Economic and Community Development.
Applause filled the Hartland Town Office after residents heard the results, and many people talked about this being the town's first sign of hope in a while.
"I'm hoping to see good things for Hartland," said Lottie Lyford. "It's the first positive in a long time."
Tannery workers and residents at the meeting said they had been worried about the town losing its largest employer. Many had little expectation of a positive outcome after Prime Tanning filed for Chapter 11 bankruptcy last year.
Tasman officials addressed residents' concerns during the special Town Meeting on everything from management style to future plans.
Norman Tasman, company president, repeatedly told residents that it's a "family company" taking over the business.
"It's my name that's going on this facility, and I don't want to do anything to harm my name," Tasman said.
Tannery employee Hadley Buker said Tasman spoke to employees this week. Buker said the president's speech on the businesses' future really inspired him.
"He used the (words) 'I'd like to see it grow,' " Buker said, referring to the president's comment. "As an employee for 38 years, I haven't heard that word in a long time."
Tasman officials explained more details of the sale during the meeting.
They said the company is purchasing the equipment at the facility, and leasing the real estate from former owners who have gone through the bankruptcy process; but the state controls the leasing arrangement because of its involvement in the bankruptcy, said David Ernstberger, chief financial officer at Tasman.
The company is listed as the real estate owner, but the state is actually controlling the property, he said. Tasman's company will continue to pay annual real estate taxes.
As for the deal approved by town residents Saturday, there's a new cost-sharing arrangement for the waste-water treatment and pollution-control facility and its landfill.
Because the tannery is the biggest contributor to the facility, historically it has had to pay for most of its $600,000 operation, and the town government has picked up the balance.
Recently, that split has meant the tannery paying 80 percent, with the town picking up the remainder. The new agreement calls for the tannery to pay 70 percent and the town 30 percent for the first two years.
The deal translates into a cost of id="mce_marker"88,000 for the town, which increases residents' tax rate by 48 cents per id="mce_marker",000 of property value, according to town officials.
If the deal had failed, the tannery would have closed and the town would have been responsible for the entire treatment facility cost, said town, state and company officials.
The tannery purchase and lease deal was finalized at 4:30 p.m., according to Tasman, reached by telephone.
The work force is expected to remain at its current level, and the company plans to get started with its plans this week, he said.
"Work starts on Monday," Tasman said.
Courtesy of the Morning Sentinel
By David Robinson drobinson@onlinesentinel.com
Staff Writer, Morning Sentinel
