Perry offered $1M-a-year LNG deal

PERRY – The Passamaquoddy Tribe and the developers of a proposed $400 million liquefied natural gas terminal have sweetened the pot in an effort to get residents in this tiny Washington County community to approve the project by offering the town $1 million a year, enough to eliminate all property taxes.

David Turner, a write-in candidate for selectman who negotiated the deal, presented the agreement at the Perry selectmen’s meeting Monday.

Selectmen then signed a letter to the town recommending voters approve construction of an LNG facility, which allows tanker ships to offload the gas for distribution. Although the letter said they were making the recommendation as community members, the signature line included their title of selectmen.

This latest offer is an increase from the $340,000 recently offered by the tribe and company. The $1 million annual payment would begin with the start of construction and last for the 30-year life of the plant, plus any extensions.

“The new $1 million pledge could allow the elimination of property taxes in the town of Perry and still provide for substantial growth in school, fire protection and safety services,” the developers said in a press release. Perry’s local tax share is approximately $640,000.

Last year, the tribe and Oklahoma-based Quoddy Bay LLC entered into an exclusivity agreement. In the past few weeks, developer Don Smith and Passamaquoddy Tribe Chief Melvin Francis have been promoting the project.

Perry voters on Monday, March 28, will decide the fate of the proposed LNG terminal at Gleason Cove.

In 1986, the tribe gave the town power over its land. At that time, Perry voters approved Article 40 to allow the Passamaquoddy to annex 390 acres on Route 190 near where the LNG terminal would be proposed. The article had one proviso: that the town would have veto power over any future commercial development.

At least two of the opponents who attended Monday’s meeting described this latest offer as nothing more than a bribe coming right before the vote.

Turner countered that the town faced tough economic times and the developers made the offer to help relieve some of the burdens that construction could cause. “The county tax is going up by $18,000,” he told the more than 20 people who attended the selectmen’s meeting. “LD 1, the governor’s prize tax reform package for rural Maine, [represents] a negative $46,000 for the town of Perry. That’s their definition of tax reform.”

Turner recounted other cuts in the town budget.

Project manager Brian Smith said the offer was based on a recent public hearing where residents detailed the cost the project would have on the community. “We are here to work with the local communities, not against the local communities,” he said. “This is intended to be a project we can all work on and everybody can be proud of.”

It will be up to the town of 847 residents to decide how they want to spend the $1 million if the vote goes in favor of the developers. “I am presenting an offer of $1 million a year with an inflation clause that demonstrates that Mr. Smith and Governor Francis want to work with us to ensure a successful project that will benefit the residents of Perry,” Turner said in his opening statement.

Opponent David Moses Bridges asked the developers if they would have offered the $1 million to the town if there had not been Article 40.

Resident John Cook suggested the town hold out for more money.

Asked by an opponent if LNG was safe, Selectman Lee Corbett yelled, “We’ve been through this before. He said that place [is safe] 10 times, I don’t need to listen to it again. …You’re beating a dead goat here.”

Developers said LNG is safe.

The developers were asked about similar payments to Eastport and other towns, but Brian Smith said no other offers have been made. “We feel that the largest impact will be on the town of Perry,” he said. “In terms of other feedback we are also responding to that.”

Don Smith said Eastport city officials have not invited him to meet with the council.

While voters are pondering the $1 million, the wording of the town’s annual report could be confusing. The report suggests voters will address the issue of an LNG facility at its annual meeting Tuesday.

In fact, when voters go to the polls on Monday to elect a selectman and other town officials, they will be presented with a separate ballot at which time they will be asked to give a thumbs up or down on the project.