The meeting was called to order by Jo Cameron at 4:05 p.m..

Paul Gibbons said the agreement between the Town and Sheepscot Holdings regarding the costs to be paid by Tom Toye, which was discussed at the last meeting, had not been finalized because Sheepscot wanted to limit its costs to $10,000. A compromise solution was proposed whereby Sheepscot would pay $10,000 toward the costs of Erik Stumpfel who is preparing the TIF documents and after the vote and the TIF is in place, the first payment will go to reimbursing the Town for costs in excess of $10,000.

Rodd Hopper said that his understanding was that Sheepscot would pay the Town’s expenses, not limited to legal expenses and not limited to $10,000. Tom Toye said he was willing to pay for the production of three documents: two interlocal agreements (with Wiscasset for water and sewer) and the credit enhancement agreement. He did not understand why the services of a second engineer or attorney required by Paul Gibbons were necessary.

Paul Gibbons said that the Town needs to be independent in its analysis of the proposal and its benefits, not hampered by the cost. Reimbursement by the TIF is not unusual because it is hard to determine what the costs will be. The disadvantage of this plan is that the Town would have to put up the money for costs over and above the $10,000 provided by Sheepscot. Because the interlocal agreements and the credit enhancement agreement will have to be in place before the vote occurs in order to present the concept to the voters, something that was not envisioned by Gibbons, there will be costs not anticipated by Gibbons. Tom Toye said he would be negotiating with Wiscasset for the sewer and water and whatever agreement was reached would only have to be reviewed by Gibbons. Toye said he needs the agreements by September 30th.

Gibbons recommended that only he be responsible for representing the Town for the protection of the Town and would not recommend letting Toye negotiate with Wiscasset. There are safeguards Edgecomb would require that Toye would not necessarily require. Moreover, the agreement would be between Edgecomb and Wiscasset.

The public benefit (required for a TIF) was discussed, specifically the development of the 30-acre parcel which with sewer and water could be more densely developed. Joan Fortin reiterated a comment by Jim Nimon (who approves TIFs for the Department of Community and Economic Development) that there is no downside for the Town. She saw no reason for the Town to spend more than $10,000 to expand the project. Sheepscot will be spending $1,000,000 for the first phase and whether or not Sheepscot gets reimbursed from the TIF, the Town will have the water and sewer lines. The $10,000 was originally intended for Paul Gibbons' costs to review the interlocal agreements and the credit enhancement agreement, not to involve another lawyer and engineer.

Bruce Cameron said that he believed the Town would want to be certain the agreement with Wiscasset was between the two towns, not between Toye and Wiscasset.

Paul Gibbons said that independent investigation of the drawings and documents was necessary in promoting the TIF to the voters. The Town should look at the risk of using Sheepscot’s documents and negotiations. It should also consider paying for the public benefit it is getting. If the measure passes, the costs put up by the Town will be reimbursed from the TIF; if not, the Town would lose whatever funds were paid over $10,000. He estimated the real risk at $5,000. Rodd Hopper said originally he had suggested that the matter be brought up at the May Town Meeting so that there would be ample time to investigate the agreements and determine costs; moreover, any outlay of funds would have to be approved by Town Meeting. He added that he was not sure the TIF would pass.

Erin Cooperrider cited the work of the Planning Board and the ordinances which had been approved by the voters designating an area for commercial development and allowing greater density with water and sewer. She said it would be important that the interlocal agreements are drafted so that the definition of “Town of Edgecomb Water and Sewer” referred to in the Building Code applies or an ordinance amendment will be necessary.

Paul Gibbons saw no objection to Joan Fortin drafting the credit enhancement agreement with review by Erik Stumpfel.

Laying the lines in the river from Wiscasset can take place between November 7 and March 15 and is expected to take no more than 90 days, 60 days for actual work in the river. Rodd Hopper suggested that a Town Meeting could be held in January and still meet the deadlines above. Toye said that the contract for the water and sewer lines will be signed within a week with a start date in December or January. It will take sixty days to order the pipe. Rodd Hopper said that if the contract is going to be signed anyway, why should the Town get involved. Tom Toye asked what guarantee he would have that the documents would be in place if he puts up more money.

Tom Toye said that the Wiscasset Water District’s preference is to own the lines and Toye told them that was subject to Edgecomb’s approval. He asked whether the Town would agree to that. Erin Cooperrider said that if necessary an ordinance change could be proposed which would allow ownership other than by Edgecomb.

Tom Toye proposed that he put up $15,000 for expenses incurred by the Town and if an October 19 deadline is not met, the he will be responsible for only $12,500. By that date, the Town’s engineer will have approved the plans, Erik Stumpfel will have reviewed and approved the credit enhancement agreement, and Paul Gibbons will have completed the negotiations of the interlocal agreements with Wiscasset. An agreement outlining these terms will be drafted and at 5:30 p.m. the meeting was continued until September 9, 2004 at 4:00 p.m.

The continuation of the meeting was called to order by Jo Cameron at 4:10 p.m.

Tom Toye announced that he had a signed purchase and sale contract for the Sheepscot Holdings property with Roger Bintliff, a Portland restaurateur, who intends to continue with the project. Toye will stay with the project as long as needed. A closing is anticipated on September 30th.

Paul Gibbons distributed an agreement he had drafted outlining the terms discussed at the September 7th meeting as to how the fees would be covered -- Sheepscot will deposit $12,500 with the Town and will be liable for $15,000 upon approval of the project. Frank Perkins moved, Jo Cameron seconded, to approve the agreement. The vote was unanimous. The funds will be deposited in a special account and will be used only for TIF-related expenses.

Paul Gibbons asked Jim Fitch, who had been involved in the initial planning several years ago, to look at the plans to explore if the public benefit could be increased. Fitch said that there were three logical phases that had been explored in the past -- the first to bring water and sewer across the river to the pump station on Route 1 on Davis Island, the second would bring water and sewer across the bridge at Cod Cove to Route 27, and the third would extend the lines to the Newcastle town line. The intent was to service an area that would be a business or multi-use district. Sheepscot’s proposal is to bring the lines behind the inn and restaurant to the present pump station. Fitch said a typical pump station would be a concrete in-ground structure six feet in diameter and possibly a generator would be added. This would require a 50’ x 50’ area accessible by a ¾ ton truck plus an easement and access to power.

He said the disadvantages of the current Sheepscot plans were that an easement to the pumping station would be needed, as it is located between a building and the water on the Sheepscot property; the pumping station is not on Route 1 for easy expansion along that corridor; and there is the possibility of an odor problem so close to the building. A pumping station on Route 1 which would allow greater access and decreases the Town’s liability exposure would cost approximately $150,000 to $200,000. It will have to be determined if a pump station could be put on Jimmy Hall’s property at the corner of Route 1 and Eddy Road or in the DOT right-of-way.

A Town portion of the TIF is possible to fund additional improvements such as a pumping station on Route 1; there is no requirement that the TIF be for only the private property owner. Stumpfel said, however, that geographically a TIF could cover only 2% of the town area and the total of all TIF districts could cover no more than 5%. The area proposed for Sheepscot’s TIF district is .0033% of the land area of Edgecomb.

Don McElhinney, Sheepscot engineer, said that it was necessary to award the contracts for the river work as soon as possible, and he was reluctant to change plans or jeopardize the agreements and permits already in hand. He said that some changes had been made such as increasing the water main to 12”. The 4” sewer line was deemed to be sufficient. The differential cost to increase to a 6” line is $45,000.

In response to Rick Elder’s question, Erik Stumpfel explained that the State’s funding to towns decreases as assessed values increase; however, under the TIF statute, the increase in value does not count against the Town in computing county taxes, general revenue funding or school funding. Tax dollars from the increase in value, the funds to be sheltered, are used partly to fund the developer’s improvements. Funds that do not go to the developer can be earmarked by the Town for special purposes and should not be allowed to go into the general fund. For instance, a portion of the funds could be used to extend the water and sewer lines along Route 1. The effect of the reassessment and lower mill rate was discussed and it was determined that there would be no appreciable difference.

Paul Gibbons expressed his concern that without a pumping station on Route1 or a viable location for one, the increase in commercial property values along Route 1 as a result of water and sewer availability would not occur. Typically access to water and sewer lines would double the value of these properties. He suggested that an option to buy be explored with Jimmy Hall. Without the pumping station on Route 1, the public benefit of the project is greatly decreased.

The warrant article to be voted on will be to approve of the designation of the development district and the development program and authorize the Selectmen to negotiate and sign the credit enhancement agreement. The interlocal agreements will also have to be approved at Town Meeting.

Jim Fitch will review the engineering drawings and specifications to insure that the proposed project is adequate and also to determine if the design will allow a connection that would enable the Town to expand the water and sewer service along Route 1. He will be available to assist in the public hearing processes and to explain the public benefit. He also will assist Paul Gibbons in the contract process with Wiscasset for water and sewer.

Eric Stumpfel will advise the Town on the credit enhancement agreement and the development documents.

After Jim Fitch has determined the exact boundary lines of the DOT right-of-way along Route 1, Rodd Hopper and he will contact Jimmy Hall regarding an option to buy a portion of his property. Paul Gibbons will prepare the documents for an option to purchase possibly offering Hall the opportunity to hook up to the sewer system with a private service line.

The process is: A public hearing with ten days’ notice is held to present the proposal to the voters. More than one public hearing was recommended. The proposal cannot be amended or voted down at this point. On November 2nd the Town Meeting will be called to order and a moderator elected. The warrant article to be voted on limits the referendum item to the ballot and it cannot be changed or discussed. The Town Meeting will be adjourned when voting is closed. The Selectmen were given informational folders describing the process.

Erik Stumpfel said that Jim Nimon is aware of the project and doesn’t anticipate any problems.

It is essential that the Board of Selectmen, Planning Board and Budget Committee present their positions at the public hearings (and that they be unanimous in their support). It is particularly important for the Budget Committee to understand and explain that there is substantial public benefit but no exposure for the Town.

The “to do” list includes:

• Erik Stumpfel will report to the Town on the credit enhancement agreement.
• Jim Fitch will report on his findings on his review of the existing drawings and on the possibility of future uses of the sewer system that might have to be put into the agreement.
• A sewer ordinance might have to be adopted which will require a public hearing.
• Rodd Hopper and Jim Fitch will meet with Jimmy Hall regarding a pump station on his property or an option to buy.
• Don McElhinney will send copies of permits to Jim Fitch.
• Joan Fortin will send draft of credit enhancement agreement to Erik.
• Paul Gibbons will set up meetings for the interlocal agreements.
• Gibbons will put together a time line.

The meeting concluded at 6:10 p.m.