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VEAZIE — The Town Council Monday night considered a property tax abatement request from Bangor Hydro-Electric Co. and advised the town manager and town attorney to seek additional information.
Councilors reviewed information provided by the attorney who told them he needed to acquire additonal data before he could make a recommendation.
Town Manager Bill Reed said the Hydro maintains Veazie’s assessment of the Graham Dam property was $4.5 million over value.
The town taxes 31 acres, of Bangor Hydro’s 2,400-acre holdings, as belonging to the company as “intense industrial property.”
“Bangor Hydro does not agree with this classification,” according to a letter from the company. “Graham Station stopped producing electricity as of Dec. 1, 1992. The acreage classified as intense industrial is currently valued at $25,700 an acre. We feel that this value should decrease to $3,000 an acre. This is the current value placed on the remainder of the property on Tax Map 2, Lot 16.
“The reduction in values requested would result in an abatement of $62,706.90 for the property at Tax Map 2, Lot 16TD, and $7,986.08 for property at Tax Map 2, Lot 16. These figures are based on a mill rate of 14.2 at 100 percent ratio for the tax year,” stated the letter from a Hydro accountant.
Reed said the community should not be overly concerned about this request. He said a lot of people have been asking what its impact could be.
“I just tell them that it was a basic business decision,” said Reed. “Most large utility firms and paper mills around the state are just automatically trying to get their properties abated. It is a way of doing business today.”
On receiving the notice, Tax Assessor Alan Thomas contacted the town’s attorney to see what steps should be taken in addressing the request.
Reed said he didn’t want to downplay the abatement request because it would be a substantial amount if the town agreed to it. Last year the town returned only $2,500 overall in abatement requests.
The council authorized the manager to look into getting a professional property appraiser to review the request.
Reed believed the town’s assessment figures were fairly accurate. The electric company estimates its Veazie holding at $35 million; the town’s assessor puts the figure closer to $37.5 million.
Reed is skeptical about the company’s estimate of the land value. “They have some property classified as intense industrial property assessed at $25,000 an acre. They feel it should be $3,000 an acre. You can’t even find open farmland at $3,000 an acre in Veazie,” said Reed.
Reed will contact a professional appraiser to work as a limited adviser for the town on the issue.
“The council authorized me to hire a professional appraiser to give us advice on how to select a professional, industrial appraisal company if needed. This person would help us evaluate some questions we may have pertaining to our valuation process.
“He would also advise our tax assessor on what documents he should request, documents we wouldn’t think of, from Bangor Hydro-Electric, and advise us on how to ask the right questions,” said Reed.
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