Millinocket more than one-industry tourist center

Because of their proximity to Baxter State Park and Mount Katahdin, Millinocket people have always accepted tourism as a way of life and as part of the answer to their economic welfare. It would seem, however, that instead of a one-industry manufacturing community, the emphasis is now solely on a one-industry tourist community.

Katahdin Paper has given City Councilor Matt Polstein the option to purchase 1,450 acres of land, which he plans to turn into a high-end tourist mecca and a “gateway” to the North Woods. This area was omitted from the easement agreement the previous owner made with The Nature Conservancy (of which Don McNeil, former president of Bowater, is a trustee and who is also the president of our so-called “economic development” council. But that is another story).

Polstein had been in negotiations for this option to buy, even before the bankruptcy proceeding but was forced to put them on hold. Few others in our area have been afforded the same luxury of purchasing land. As a Millinocket councilor since 1999, Polstein has been in a position to vote and to influence other councilors to vote in favor of “the company” whenever possible.

First there was approval (by the council) of Brascan’s “Letter of Understanding” which greatly favored the company but was explained to the public as nonbinding. Then came approval (by the council) of the transfer of the tax increment financing agreement from Inexcon and Brascan. TIF agreements require that a company must spend some of its own money on upgrades or expansion in order to qualify for this tax incentive.

Brascan (Katahdin Paper) has done neither.

As for the TIF agreement itself, changes were made in the work force requirements. For the first year all requirements were suspended. Subsequently, they were reduced from 630 to 150 (with stipulations even to this reduction) should the company expect to receive an 85 percent tax return.

Originally, the work force requirement existed for the life of the TIF but is now scheduled to expire in 2011 at least six to 10 years short of the original time frame.

Polstein has also spoken out against an effort on the part of other councilors to have Millinocket annex additional land for possible future development. He has a number of possible reasons for his anti-annexation stand.

One is his connection with the governor who is pushing for consolidation of towns as opposed to expansion.

Another reason is that Brascan (which includes Katahdin Paper, Katahdin Timberlands, Katahdin Forest Management and Great Lakes Hydro) objects to the additional taxes they might be required to pay the town of Millinocket even though a recent advertisement by Brascan informs us that the group has a worth of more than $19 billion in U.S. funds and a further $7 billion in assets under management.

Lastly, if his property is not annexed by Millinocket, Polstein would pay taxes to the state (as an unorganized territory) instead of to the town of Millinocket. Of note is the fact that taxes on unorganized territory are far lower than that of a town’s mill rate. Polstein did eventually recuse himself from voting on the annexation issue due to “conflict of interest,” but only after his negotiations with the paper company were made public.

Does that mean there was no conflict until the public was notified?

He and his followers have also voiced strong objections to efforts on the part of Millinocket to hire its own “economic develop” (unless the “developer” were to report to MAGIC) for the purpose of seeking out commercial or industrial enterprises in an effort to diversify our economy so as not to rely completely on the tourist industry.

Although annexation would not be the complete answer since ownership of the annexed land would remain with the current owner, it would at least open up the possibilities of future development. In fact, several commercial businesses have been interested in setting up their companies in Millinocket but have not been able to find available land for their facilities. Among them have been a wreath-making company, a composite manufacturer, a bottle distributor and a small woodworking business.

Polstein is also indebted to the state and Gov. Baldacci, in particular. The governor has backed Polstein’s high-end complex and the deal with Katahdin Paper and has given his enthusiastic support to our “economic development” council, MAGIC, which was set up by Polstein and McNeil, but which has failed to produce the desired result. In fact, MAGIC has placed our town in great financial jeopardy through state loan-grant programs to companies that have failed to produce job opportunities promised to our displaced workers and may cost the taxpayers of our community upward of $500,000.

In addition, Baldacci has appointed Polstein to a four-year term on the Maine Tourism Commission, which will allow him to further his tourist agenda for the area. The governor has also extended his Pine Tree Zone program to include “arts and tourism,” but which was originally set up to attract manufacturing, financial services and technology services.

As a Millinocket town councilor, Polstein has consistently voted in favor of the governor’s plan to consolidate the towns of Millinocket, East Millinocket and Medway. He has also voted (when permitted) against the annexation issue which would disrupt the governor’s plan for consolidation and he is now crusading against the personal property tax for businesses, which is another of the governor’s ideas but with no alternative tax plan to replace those tax dollars, and which is the mainstay of many rural towns throughout Maine.

Now we read that Dann Lewis, director of the State Tourism Office, warned those attending Gov. Baldacci’s Conference on Tourism that the broad perception of Maine as a good buy for the travel dollar has collapsed.

No wonder there is unrest in this community.

Alyce Maragus, a resident of Millinocket, is a member of the Maine Lease-holder’s Organization.