Biddeford trash-to-energy plant seeks tax abatement

BIDDEFORD – A trash-to-energy plant in downtown Biddeford has filed for a tax abatement that could blow a big hole in the city’s budget.

Biddeford has assessed the Maine Energy Recovery Co. plant at $73.5 million, but company officials claim it’s worth only $18.9 million.

“They’ve got us down for 500 acres; we’ve got nine,” said Ken Robbins, the incinerator’s general manager. “We want to pay our fair share of taxes. But it appears we’re not paying our fair share of taxes.”

City officials disagree. “I don’t believe for one second that that plant is worth $18 million,” said City Councilor James Grattelo.

Maine Energy pays roughly $1.4 million a year in property taxes, with $160,000 of that total going to neighboring Saco.

If granted, the abatement would reduce the amount paid to both cities to about $400,000.

The abatement request likely will be considered by a state board, and it could be years before the issue is settled.

The dispute over valuation follows a lawsuit in which Biddeford claims it is contractually owed a percentage of the proceeds of the sale of the incinerator by KTI Inc. to Casella Waste Systems, the plant’s current owner.

City officials suggest that the abatement request is a strategic move aimed at lowering the incinerator’s value as the city and Maine Energy move toward settling the suit.

“I have no doubt that the abatement request is related to the litigation,” said Harry Center II, the city’s attorney. “My hair is singed from the volley across the bow.”

Robbins said litigation led the incinerator to examine the numbers closely.

“We never really looked at [the plant’s] fair market value,” he said. “But in recent litigation, that’s an issue. When we looked at the fair market value, it popped out.”