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Sunday, August 18, 2013

A Former Lisbon Selectman Speaks About The Worumbo Mill

“What’s past is prologue.”  In the early parts of the 1990’s, the Town of Lisbon took over the Farwell Mill from Miller Industries for unpaid taxes.  The Town and Miller had launched a project to convert the building into apartments.

Many of the residents of Lisbon didn’t pay much attention to the project.  It was primarily financed by a grant from HUD out of Manchester, New Hampshire.  A developer was hired and he handled the construction.  The original construction price was approximately 3.4 million dollars.  After a couple of years and very little progress, HUD began to put on the pressure about the return of their money or the completion of the project.  The Maine Department of Environmental Protection was on top of Lisbon to undertake major corrective actions at the site.  The developer went bankrupt and the project collapsed.  The next action came from HUD threatening to sue the Town for the money they had advanced on the project.  As a major taxpayer I was, along with everyone else in Lisbon, on the hook to repay the HUD loan.  I became a selectman primarily to protect the interest of the taxpayers.

Several attempts were made to market the mill with no real interest from anyone capable of completing the project.  At that point we had to decide to pay up or complete the project.  We were fortunate to get a jobs bond grant from the State and we commenced development.  We used local people who performed with good result.  The people of the Town of Lisbon approved two loans and Miller Industries helped with the rehabilitation of the environmental hazard.  The project was completed at a cost of 6.7 million dollars—not a great success, but an expensive save.

My point is that there were no villains in this story (with the exception of the developer)—just a lot of problems that were overlooked and left to fester.  Town employees were not developers and were overwhelmed.  Town officials who were enthusiastic in the beginning, were disavowing the project as things got worse.  At that time, the Town was in a better financial position than it is now.

Our tax base is being torn down every day.  Remember, the debt of the Town is backed up by your property.  This Worumbo Mill project has no value added.  We will have to make up the taxes and assume all costs associated with the project.

Now is not the time and this is not the type of project we need.  We sold the Farwell Mill and made enough money to build a new Town office.  There is no up side to this project, and a great potential for expensive missteps.  As a taxpayer who has been there, I urge you not to approve this project.


Edward J. Wall
Former Selectman

8 comments:

Dot Fitzgerald said...

From one who knows and has been there, with the Town of Lisbon. The Voice of Experience. Thank you Ed for your comments and valuable insight.
Do our leaders have the expertize to do any better with the Worumbo Mill than they did with the Farnsworth Mill project? I think not.

Larry Fillmore said...

Thank you, Ed, very much for your insight and comments. I hope you will be able to come to the Tuesday night meeting and express to this council exactly the position they are putting the people in. I think one of the most important statement you made is that this bond they are trying to approve has to be paid back and that "Remember, the debt of the Town is backed up by your property." The taxpayers has suffered through two years of tax increases which makes it harder and harder to live in Lisbon. Thanks you again for your knowledge and experience in this kind of situation.

Dot Fitzgerald said...

My reasons for hoping to not the lose the Worumbo Mill:
It is an Historical building. It is part of the history of the Town of Lisbon.
It is a landmark. We have already lost one landmark, Graziano's.
It has so much potential. But it has to be done right, by the right professionals.

My reasons for voting against the One Million Dollar Bond:
I DO NOT TRUST our town officials.
A $1,000,000.00 bond when we cannot afford it.
Remember, the town under Eldridge, Rosie, and Fern sold the old high school for $1.00, and with it gave away an Historical Grant of over a million dollars.
What do they have up their collective sleeves now? Rosie is gone but the others are still here.
Why move the bond vote up to September at an additional cost of over $3,000 when there is a referendum scheduled for November?
If it smells fishy, it must be fishy.



that is ONE DOLLAR, to Brunswick Housing, along with an Historical grant.

Anonymous said...

There are many other infrastructure enhancing projects, and other investments that can/should be made to attract businesses and people to the towns of Lisbon and Lisbon Falls. What is the first thing people investigate when they are thinking of moving or purchasing in a certain location? Schools. If your school is on accreditation probation from NEASC, why would someone move here?

I have another post on here under another Worumbo Mill post with examples of what should be done for projects. E.G. Gym, Auditorium/Performance Arts Center/Track/etc... Tearing something down for $1M is senseless.

...and I post as anonymous for reasons I've stated before. ...it puts a large target on your back by the town.

Anonymous said...

This is the post I was referring to:

I have a couple questions to ask. How does the purchasing this property benefit the infrastructure of Lisbon, and how does the loss of ~$4K+ in taxes help anything? What will bring people; business etc. to Lisbon is the rejuvenation of the schools and public facilities there in. E.g. (Renovated/Converted Gym) Auditorium / performing arts center--conferences, theater groups, acts, recitals, etc. bring people to the town where they see and use the businesses here, and possibly open more up; New Gym--tournaments-wrestling, basketball, etc bring people to the town--see above for benefits.; New Track (this is a cheap option to bring people to Lisbon)--reg. meets, championships etc. bring people to the town--see above for benefits. These also, bring in funds to help self-support programs where funds are short or non-existent at the current time. These will also, most likely, remove Lisbon High School from NEASC probation, which will also bring folks to Lisbon that are now "turned off" by its current status. Additionally, if the TC is so hell-bent on spending $1 million +++, put it in some sort of incentive / fund matching system for businesses and homes along the corridor and Main St. to improve their frontage. I have not heard one peep from anyone about how the towns purchasing of the "white elephant" improves the town in anyway. It does not bring people to the town. It will not bring businesses. It will give me a good view of the river on my way by, but that is it. Yes. In a perfect world, we could purchase, tear it down, build a waterfront park with some, SOME(FEW) higher end homes to make up for the lost revenue. However, as of this time, the only thing that the town is doing is "putting lipstick on a pig," or in this case, on the "white elephant."

Mary-Ann Morgan said...

Ed, thanks for your informative letter. As one of our best selectman in the history of this Town, people should heed your advice. You are the voice of experience.

roger roy said...

Very well said boss man. So we close the transfer station on thrusday to save money but we yet have enough to buy rundown buildings. What people dont know is the only money they are saving by closing on thrusday is a parttime working which I think adds up to 80 dollar's. The two full time workers still come in on thrusday cause they are union. Maybe thats where they are getting the money for the worumbo mill by taking the poor part timers one days pay.

Gregg said...

Ed,

I too thank you for your opinion and reflection upon past practices that I was unaware of until now. You have given me a great deal to think about.

While I agree this is a large undertaking, it is not of the same magnitude as the project you are referring to, nor is this strictly a real estate investment for monetary profit. This is, in my opinion, an investment in the future of Lisbon and and resale of sub-lots is secondary. I urge everyone to at least review the proposed project and make your own choice.

If you do not wish to vote for the bond, then don't vote for the bond, just make sure you come out and vote no matter what date it is. The 7% turn out for a school budget that is projected to raise taxes a lot more than this project is shameful.