Redevelopment Funding for 4 Communities Clarified; Questions Remain Regarding Hold Up For Others

Posted on August 2, 2012. Filed under: Uncategorized | Tags: , , , , , , |


(A reminder to readers: Gerald, who has been the one chronicling this story to this point left for vacation this morning. In full disclosure, I live in one of the towns affected. ~Andi)

According to the Lewiston Sun Journal, developer Kevin Bunker said yesterday he has received a $400,000 Maine Rural Development Authority loan to go forward with Livermore Falls’ Lamb Block project.

As collateral, Bunker used a letter from Gov. LePage stating that said bonds would be issued in that amount by June 20, 2015, to repay the loan.

“I needed to have the project done by the end of the year for HealthReach to move into,”
Bunker said. “I couldn’t sit around and wait for the governor to release bond funds. I had time constraints.”

LePage spokeswoman Adrienne Bennett said Wednesday that three other communities that expected to receive funding for projects are either in the process or have been qualified for other funding such as Community Block Development Grants.

“The state is ready and willing to help these communities, and we have demonstrated it,” she said. “What we really want is town officials to reach out to us to find a solution because they are our customers.”

Those three other eligible communities — Eastport, Dover-Foxcroft and Monmouth — secured Community Development Block Grants for their projects, according to Doug Ray, a spokesman for the Maine Department of Economic and Community Development. All three “had signed contracts that were well underway” and all three projects fit CDBG guidelines. Eastport received $190,000, Monmouth received $157,641 and Dover-Foxcroft garnered $140,000.

But other communities are still waiting and asking the Governor when it will be their turn:

Bennett said the administration awarded the grants based on an evaluation of each project’s estimated “return on investment”, as well as that economic development department, not LePage, will likely participate in the meeting requested by several town and city administrators.

As Steve Mistler noted in his report, how the administration quantifies the “return of investment” qualifier or whether other projects are falling short of it remains unclear:

Geoff Herman of the Maine Municipal Association said that the current situation complicates the communities’ ability to receive other financing, because they don’t control the issuance of the bonds and the state does.

“Banks and bond houses may need something firm (from the state),” Herman said.

Make a Comment

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

Liked it here?
Why not try sites on the blogroll...

%d bloggers like this: