Clark sees need for capital improvements

     PRESQUE ISLE, Maine — Larry Clark, executive director of the Presque Isle Industrial Council, presented his annual report to City Council earlier this month, noting the achievements of his agency while emphasizing the need to do more to attract businesses to the Industrial Park, including much-needed capital improvements to various facilities located there.
“The Industrial Council is primarily responsible for the development and management of the Industrial Park, including 25 buildings. We don’t run the railroad but are responsible to see rail items are taken care of, including the intermodal yard. Off site we have Bon Air housing and Fairview Acres. From time to time, City Council assigns other projects to us — most recently the property on Chapman Road for the Community Center and cleanup at the Webber site” at the same location, said Clark.
Clark spoke enthusiastically about the partnership that’s developed between the PIIC and Northern Maine Community College.
“One thing that’s proven very exciting is the partnership with NMCC to take over the old Highway Department garage and develop it into an energy lab,” said Clark, adding that he and city staff recently met with NMCC President Tim Crowley about future collaborations.
“They certainly want to partner up with us more than in the past, to develop business and industry,” he said. “The business from Sweden who put in their (NMCC) heating system will be here in March. We’ll introduce them (Swedish officials) to more infrastructure and what can be done here.”
Clark discussed the completed Brownfield cleanup at the old Webber site that cost about $159,000, with over $127,000 of that covered by a grant, with the balance largely done by in-kind contributions from the Public Works and Solid Waste departments.
The PIIC entered four new leases in 2013, including about 5,600 square feet to Child Development Services. A five-year agreement was also reached with Coca-Cola.
“All have options,” said Clark. “Fiber Materials has a two-year agreement. Aroostook Trusses is also dba Aroostook Shredding (formerly run by the Work Opportunity Center). We entered a two-year lease renewal with Acme Monaco.”
Seasonal storage continues to be a revenue generator, said Clark.
“We’re using three buildings for seasonal storage of cars, campers, equipment and more. We have 128 agreements and 230-plus pieces in storage. It’s scary when you realize the dollar value represented” by what’s in storage, said Clark.
One of the most noticeable changes in 2013 was the departure of Tater Meal, said Clark.
“They quit producing in March and all equipment was removed. Tater Meal had been there since 1964. McCain’s lease for Tater Meal expired in May; officials chose to move the operation to Easton,” said Clark.
Clark said several capital projects were started or continued in 2013.
“We removed a 20,000 square-foot slab and walls on Cross Street. We replaced the west side of the International Paper Building but have more to go. We also started the Coca-Cola project this year, which included siding and new insulation to the south side of the building. We’ll continue to budget to complete the work over the next two or three years,” said Clark.
He said efforts to reduce expenses have included working with Efficiency Maine on lighting upgrades.
“There were five locations that were under that program. The total project cost was $38,000. Our cost ended up being $13,850, after EM and the tenants participated. A total of 332 fixtures were replaced — some dating back to the ‘60s,” he said.
Roofing projects and pellet boiler installations were also on last year’s list of improvements handled by the PIIC.
Clark said of the $335,000 budgeted for the PIIC in 2013, expected expenditures amounted to $315,000. He credited filling a vacant space and no longer having to foot the heating bill for helping reduce spending.
“It’s good to get them in (Child Development Services) and cut our costs as well. We’re under budget and generated income as well,” said Clark.
While enthusiastic about the past year, Clark said more needs to be done to continue developing the park in the future.
“2013 had challenges, but it was another successful and profitable year. It presented challenges and opportunities. Looking at my crystal ball for 2014, we need to make very wise decisions on capital improvements. They’re not cheap; we need to make sure the money’s there to do what we should” for maintenance and upkeep of existing infrastructure, said Clark.
Elsewhere in the city, Clark said the future will be a challenge, given the inventory of vacant, privately-owned buildings, including the MBNA building on Green Hill Drive, the two KeyBank facilities, the Willette building on State Street and the Crow’s Nest on Maysville Street.
“Each has it’s own individual challenge and I expect we’ll need creative thinking on what can be done with those facilities,” said Clark.
Councilor Craig Green asked Clark what he projected the return would be in terms of profit dollars for the Industrial Park.
“The numbers are impressive for the Industrial Council. If you take operating expenses vs. debt, operation (of the PIIC) has always been in the black since Year One. Another thing to remember is the number of jobs created by the city taking over the property — Northeast Packaging, UPS — job numbers not given today,” said Clark.
“It was probably very daring at the time for the city to acquire this property (industrial park), but it was a very good investment,” said Clark.