Edgecomb considering buying fire truck with TIF funds

Selectmen hire law firm to advise them on amending TIF agreement
Fri, 04/27/2018 - 7:45am

    Edgecomb selectmen are seeking a creative solution to buying a $247,600 fire truck. On April 24, selectmen hired Bangor law firm Eaton Peabody to advise them on enacting a tax increment financing amendment to allow equipment purchases such as a fire truck.

    Town officials are in a quandary about purchasing the truck fire officials requested during budget season. Fire department leaders requested a Fast Attack vehicle equipped with a Ford F-550 chassis. The new truck would replace two other department vehicles nearly 40 years old. Selectmen want to use TIF funds to buy the truck. Under the current agreement, the funds can only be used for infrastructure.

    Selectmen are consulting with Eaton Peabody attorney Jon Pottle who specializes in municipal law and economic development issues. Selectmen sought out the firm last month after learning other Maine municipalities used TIF funds to purchase a fire truck.

    Selectmen want Pottle to re-examine the town’s TIF Sub Account and offer possible amendments.

    “This is really the first time we’ve looked under the hood of the TIF,” said Selectman Ted Hugger. “There is some new leadership in Augusta which allowed TIF funds in Littleton to purchase a fire truck. This is the first conversation we’ve had with an attorney and hope to get an answer soon.”

    In other action, selectmen heard from Boothbay Region Refuse Disposal District officials who reported about their recent purchase. Station Manager Steve Lewis and local district trustee Curt Crosby explained the $1.363 million purchase of Giles Rubbish, Inc. On April 19, district trustees voted unanimously to buy the Boothbay-based trash collection business. The deal requires a $110,000 down payment and  includes purchasing a body for a new truck Giles recently bought.

    Lewis expects the business to pay for itself and, in time, reduce taxpayers’ contributions to the district. Lewis and Giles negotiated the deal for the past three months, according to Lewis.

    “Dan (Giles) was looking to retire and I think he gave us a discount. We had our auditor look at the books for the past five years and we’re confident this won’t cost taxpayers anything,” he said.

    Lewis reported the purchase had two major benefits. One is keeping the business in local hands. Second, if Giles sold to a big corporation, the refuse district would lose recycling revenue and disposal revenue. “He really wanted his eight employees to keep their jobs so that’s why it was important to him to find a local owner,” Lewis said. “For us, we retain revenue we already generate by Giles transporting trash to the district.”

    Under the agreement, the district will maintain refuse pickup in Boothbay, Boothbay Harbor, Edgecomb and Southport. The district may continue for 30-60 days Giles'remaining routes in Wiscasset, Alna and Westport Island. “If he needs more time selling these routes then we have a gentlemen’s agreement to maintain these for a very short time,” Lewis said.

    Selectmen will meet next at 6 p.m. Monday, May 14 in the municipal building’s meeting room.