Rockland offers support for Fisher tax break, solar panel grant
July 13, 2009
Courtesey of the Village Soup
By Stephen Betts
The Herald Gazette Associate Editor
ROCKLAND - Rockland city councilors gave their backing Monday night to a grant application for a company that wants to manufacture solar panels in the city.
The council also gave the city manager the go-ahead to contract with two firms to develop a tax break agreement with snowplow manufacturer Fisher Engineering.
The council voted 4-0 to authorize the administration to submit an application for a $200,000 grant on behalf of Ascendant Energy.
Founder and Chief Executive Officer Christopher Straka said that this type of manufacturing was the way for the county to get out of the recession. He said it was important to create high-technology jobs and stop exporting dollars to foreign countries.
Councilor Eric Hebert said this was an opportunity for economic development and repeated the adage "nothing ventured, nothing gained."
Councilor Brian Harden said this was a very competitive business that was not without risks. He said he was pleased Rockland was being considered for the plant.
If the company creates seven jobs within two years of receiving the $200,000 state Community Development Block Grant, the city will be absolved of any financial risk.
Councilor Tom Molloy said he was concerned that the city's financial interests were protected. Community Development Director Rodney Lynch said the city attorney was working on such an agreement.
Lynch said while the city was concerned about economic development it was more concerned about protecting the taxpayers.
The council tacked on an amendment that the property being considered must be properly zoned. One of those properties is 56 New County Road, formerly Lewis Marine, which may not be zoned properly for such manufacturing.
Straka said he believes the property is zoned properly. He said he is still working on financing and a plan for renovations to the building.
If plans are not completed by the Aug. 15 deadline to submit the application to the state, the city and Ascendant Energy will apply for the next round of grants in March.
The vote was 4-0 to support the grant. Councilor Elizabeth Dickerson abstained, saying she maintains the Web site for the company and has done some marketing work for the company.
Fisher deal to be developed
The council voted 5-0 to authorize the administration to contract with Eastern Maine Development Corporation and the law firm of Eaton Peabody to prepare the documents that need to be filed with the state to create a tax increment financing district for Fisher Engineering.
Fisher's owner Douglas Dynamics has proposed adding 53,000 square feet of space to its 120,000-square-foot manufacturing plant at the end of Gordon Drive. The company wants to break ground in September.
The company has estimated the value of the addition at $3 million to $4 million.
When completed, the company expects to hire an additional 50 workers for its Rockland plant. The company now employs 180 workers.
A TIF district allows a company to be reimbursed for a percentage of the additional taxes levied on an addition. A TIF district does not affect the taxes paid on the existing property, buildings or equipment.
The request by Fisher is for a 10-year TIF district. During both of the first two years, 75 percent of the additional taxes created by the expansion would be reimbursed to the company by the city. In each of the third through fifth years the break would be 60 percent, in years six through eight it would be 40 percent, and in year nine and the final year the break would be 20 percent.
The tax break would amount to about $264,000 over the 10 years.
The Herald Gazette Associate Editor Stephen Betts can be reached at 207-236-8511 or by e-mail at sbetts@villagesoup.com.
Eaton Peabody Media Contact
Fawn R. Wentworth, Marketing Manager
fwentworth@eatonpeabody.com
207-992-4805
