Town dropping plan to buy building

DOVER-FOXCROFT — Residents will be asked at Monday’s annual town meeting to take no action on an article regarding the purchase of the Center Theater building.

Municipal officials learned late last week that the town will not be able to fulfill the terms of the article if approved by residents.

Selectmen had agreed last month to include an article on the warrant for the purchase of the theater property by the town at a cost of $150,000 and included borrowing that amount over a 20-year period.

As specified in the warrant article, once the purchase was approved, the property would be deeded to the Center Theater Development Group. Although board members voted to include the purchase of the theater building on the warrant, they did not collectively take a position on the purchase.

But Town Manager Owen Pratt said Wednesday that the town’s bond counsel would not recommend the purchase of the theater building as tax-exempt borrowing for the town and, therefore, would not finance it. Such tax-exempt status would be only for properties or projects owned, maintained or operated by the town.

The Center Theater Group, a tax-exempt organization, is not considered a town or governmental function, Pratt said. It is a group of private citizens who have organized to promote downtown community and economic development.

Rollin Thurlow, chairman of the theater group, said Thursday that members planned to meet with the town’s bonding agency to review the problem and to find another avenue under which the town could purchase the building.

Even if a solution for the purchase of the building by the town is not found, he said members of the theater group would continue their efforts to raise the funds for the purchase and the approximately $1 million needed for its renovations.

The group is working to turn the movie theater into a modern theater for live and filmed entertainment and other cultural events, with seating for up to 400 people. Promoters say the theater will attract and enhance for-profit businesses, increase economic activity, provide jobs, raise the value of downtown properties and improve the quality of life for everyone.

One business owner operating in the lobby of the former theater building would be evicted if the building changed ownership. Berry Patch owner Norine Tetreault said she would be forced to close her business if the town purchased the building and deeded it to the theater group.

Residents will decide on the proposed town purchase of three other properties when they meet at 7:30 p.m. Monday at Foxcroft Academy.

The town’s six-member budget advisory committee has recommended the purchase of the former Nancy’s Bakery property next to the fire station but have voiced no opinion on the proposed purchase of the former Peter’s Pharmacy building and lot and the purchase of the Tyler house and lot behind the pharmacy.

Each of the proposed purchases, which have been suggested to further enhance the downtown’s commercial and aesthetic value, will be decided in separate warrant articles.

Residents also will be asked to authorize selectmen to accept from SAD 68 on behalf of the town, without cost, the Mayo Street School, including real and personal property, and to convey the building, without cost, to Eastern Maine Technical College. If approved the school will be used as a higher learning center for adults.

In addition, several ordinance revisions also will need voter approval.