BIDDEFORD — The City of Biddeford is poised to purchase and close the Maine Energy Recovery Company waste-to-energy incinerator for $6.65 million over 20 years. A deal is in place and all that’s needed now is city council approval.
Although the immediate effects would be lost tax revenue for the city, which would impact property owners’ tax bills, and a loss of local jobs, in the long term, closing the incinerator would be a boon for the city, said Economic Development Director Daniel Stevenson.
Over time, more redevelopment in the city would take place, he said. This would bring increased tax revenue, which could lighten the burden for some property owners. Increased development would also lead to more and diversified jobs, he said, as well as more people in the downtown, which would benefit existing businesses.
Closing Maine Energy “would be a positive thing for the downtown,” said Greg Bennett, one of the principals who owns the Lincoln Mill.
It would help redevelopment efforts in both the downtown and mill district, he said. Potential business owners who have looked to locate at his site have listed the nearby incinerator as a reason for going elsewhere, said Bennett.
Doug Sanford, owner of the North Dam Mill and the Pepperell Mill Campus ”“ the former WestPoint Homes ”“ made similar comments about the proposed sale. On numerous occasions, he said, potential businesses have listed Maine Energy and lack of parking as the two main reasons they decide to locate elsewhere.
He can’t guarantee new development will follow the closure of the incinerator, said Sanford. Then again, he said, “There’s no guarantee the banks will be open tomorrow.”
However, said Sanford, he has great faith that the closure would lead to new development.
When he purchased North Dam Mill in 2004, he said, “We started with nothing. Now we occupy 300,000 square feet in the worst economy since the Great Depression.”
Sanford is also in the process of building 30 more residential units; 75 percent are pre-leased, he said, and he is planning to build 55 senior housing units.
Some members of the public who are critical of the Maine Energy purchase plan say one reason they’re against it is because it will mostly benefit the mill owners, and those property owners should pay toward the purchase price.
There are more than 80 businesses located in Sanford’s mill district property and 55 residential units ”“ about 300 bodies that occupy his site, he said.
That occupancy doesn’t just benefit him, said Sanford, it also benefits local restaurants and other businesses in the area where residents and workers eat and do business. In addition, he said, he has invested a lot in his buildings and that benefits the city because of the increased valuation of his property.
According to City Assessor Frank Yattow, when Sanford purchased North Dam Mill it was valued at less than $3 million. Eight years later, it is assessed at $8.2 million.
The assessment of another mill district property that was redeveloped into residential use has also increased. When the property for the Mill at Saco Falls was purchased in 2009, the price was $855,000. The valuation today is $6.1 million.
In addition to vested property owners and developers who believe the removal of the incinerator would be good for redevelopment, many local people feel the same way, said Delilah Poupore, executive director of the Heart of Biddeford.
During the downtown master planning process, completed in 2011, she said, hundreds of people said Maine Energy was a hindrance to downtown development.
A trash incinerator in the downtown, with its accompanying odor issues and other problems, “is a bad thing,” said Craig Pendleton, executive director of the Biddeford-Saco Chamber of Commerce & Industry.
When potential investors and business owners come to his office at the Saco Transportation Center, across the river from the incinerator, they often complain about the smell, he said.
“There are days we can barely go outside,” said Pendleton.
Removing the incinerator would lead to redevelopment, he said.
“I don’t think it’s just wishful thinking. I think it’s a real possibility.”
Mayor Alan Casavant said he also believes there will be an increase in redevelopment in the city if Maine Energy leaves. An incinerator in the downtown hurts the city’s image and hurts its chances for new investment, he said.
“Biddeford has tremendous assets,” said Casavant, “but we’ve never taken advantage of them.”
When developers see the city is interested in investing in the downtown, they will be more interested in the site, he said. With the removal of the incinerator and other projects in the pipeline, the city’s image should improve, said Casavant, and increased development, and all of its benefits, should follow.
If this deal is not approved, the future is uncertain, said Stevenson. Casella, he said, has made it clear they don’t want to continue in the incineration business.
Casella spokesman Joe Fusco confirmed the company is moving out of incineration to other forms of “resource renewal.”
If Biddeford bows out, the company would look for another buyer for the site, he said.
That’s risky, said Stevenson. There’s no guarantee a new owner would operate the plant the same way, or keep the current staff. The plant could sit empty or have minimal use with a lower valuation ”“ meaning fewer tax dollars for the city and fewer or no employees.
The city council will make it known whether it favors purchasing Maine Energy on Tuesday, when an initial vote takes place. Members of the public will also have a chance to voice their opinions about the proposal. The meeting is at 7 p.m. at the Biddeford Middle School auditorium.
The final council vote is scheduled for July 31.
— Staff Writer Dina Mendros can be contacted at 282-1535, Ext. 324 or dmendros@journaltribune.com.
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