More support for Loring urged Officials to seek legislative help to boost former military base

LIMESTONE – State government has to do more to support the base reuse efforts of the Loring Development Authority, reuse officials said Wednesday.

While only funding 3 percent of the LDA’s multimillion dollar budget, the state is the primary beneficiary in having the former military base reach its full potential in creating jobs and boosting the region’s economy, LDA officials said.

Disappointed with Gov. Angus King and his administration’s apparent reluctance to fund transportation improvements at the Loring Commerce Centre, reuse officials plan to ask the Legislature to increase the amount needed to improve rail and aviation services at the former military installation.

“I think this is a wonderful opportunity for the state to step up to the plate,” said Daniel LaPointe, a member of the Loring Development Authority’s board of trustees.

To improve the rail line from Caribou to Loring and construct two one-mile extensions, King included only $1.5 million in the proposed transportation bond package being considered by the Legislature.

The LDA has requested $4 million for the work, which the authority said is needed to accommodate two major proposed manufacturing plants.

In addition, the governor declined to include in the bond package any portion of an additional $4 million request for improvements to the facility’s aviation hangars. Without the improvements, reuse officials believe they can’t secure a major aviation business at Loring and will never reach the facility’s full capacity.

“I believe the state owes us a chance to reach our full potential by giving us the money,” said Brian N. Hamel, LDA president.

According to Hamel, the federal government funds 97 percent of the LDA’s activities, with the remainder coming from an annual appropriation from the Maine Legislature.

Financially, the state has not been helpful, said LaPointe.

“We’re offering the state a chance to become a partner,” said the Van Buren trustee.

The $1.5 million earmarked for rail line improvement would facilitate the construction of the Irving Forest Products manufacturing plant and the Lamb Weston potato processing plant. However, the state bond funds are contingent on the LDA securing $2 million in matching funds from the federal government and “significant” private investment, according to Hamel.

The LDA executive said matching funds never were part of the discussion before and that the state was being “unreasonable” to make that request part of the funding package.

“I can guarantee that the Irving project will not happen [without the rail line],” said Hamel.

The Lamb Weston project will be “diminished,” he said.

Hamel said it was unlikely the $2 million in matching funds could be raised in a timely manner.

“Given the fact that the Irving and Lamb Weston projects are expected to result in over $450 million in private-sector investments at Loring and employ over 500 people, it would seem that these investments would be enough of a match,” said Hamel’s written president’s report.

The entire state will benefit by having Loring reach its aviation potential, Hamel told the trustees. Later, he explained that a trained work force would be located in the state to work on wide-bodied aircraft, something that would benefit the entire aviation industry in Maine.

Jobs would be created and goods and services would be purchased, said Hamel, citing the ripple effect on the economy. Aircraft parts could be purchased from suppliers around the state, he said.

“Activity stimulates other activity,” said Hamel.

LDA officials, including board members, plan to meet with legislators to present their case further. If the Legislature approves the bond package, the issue would be included on the November ballot.