Councilors approve
‘unique’ scrap metal deal
By Kathy McCarty
PRESQUE ISLE — City Council voted Monday night in favor of a local man’s proposal for disposal of the community’s waste metal.
Geary Bonville, of Presque Isle, had appeared before Council July 12, requesting it approve a contract with him for scrap metal recycling. He was told at that meeting to submit a formal written request which would then be considered by Council at a future session.
Dana Fowler, solid waste director, received a letter July 23 from Bemis & Rosignol, LLC, on behalf of Bonville, stating he would pay the city an annual payment of $5,000 for the city’s scrap metal for five years. The letter further stated Bonville would make improvements to Skyway Trailer Park located in Presque Isle — a property he owns — that would result in additional tax income for the city of over $40,000 per year.
The current contract with D&N Metals of Grand Falls, New Brunswick, is set to expire Sept. 9, 2010.
Attorney Frank Bemis addressed the Council, explaining the benefits such an agreement with his client would create for the city.
“Mr. Bonville is doing a tremendous amount of improvements to homes across from Skyway — homes recovered from throughout the community. He’s making definite improvements to the trailer park and building up (the area) so that the city would get an additional $40,000 in taxes yearly,” began Bemis.
Bemis noted that Bonville had a knack for making something out of other’s unwanted items.
“It’s an unusual situation. He’s always created value out of unusual circumstances — managed to make something out of next to nothing all his life. Now he thinks he can partner with the city by making a contract of $5,000 with the city for its scrap metal, take those funds, make improvements to the trailer park and make something unique for the city,” said Bemis.
Bonville told councilors his plans included creating more handicap accessible and senior citizen housing.
“I’m moving two more houses on foundations that came from Presque Isle Housing and building one more stick house. I feel that’s the way to go. If I can get that done, you people will get another $40,000,” said Bonville.
Councilor Randy Smith noted that $40,000 in taxes meant about $1.4 million in valuation. Bonville responded, saying when he was done, the property would be “worth $4.5 million.”
Council Chair Jennifer Trombley said the increased cash flow to the city would supplement the reduction in what Bonville would pay for the scrap metal.
According to Fowler, D&N had a contract to pay the city $136.56 per ton, but when the market crashed worldwide in 2008, it led to Council approving a novation (the exchange of new debts or obligations for older ones) in January 2010 that reduced the price paid to $56 per ton. He said Bonville’s offer came to about $16.67 per ton.
“This is a relatively low price but there is no way to predict what the market will be in the future. Mr. Bonville is proposing to make improvements to his property that would result in additional tax income of $40,000. If the Council wants to count this as revenue for the city, it would equal an additional $133.33 per ton of metal, which is a very high price. If the contract was bid today, anticipated bids might be in the $50-$75 per ton range,” said Fowler in a memo to Council.
City Manager Jim Bennett told councilors to “consider it like a TIF (tax increment financing).”
Bennett said if Council was interested in doing this, there would need to be some type of “contractual agreement” with a “certain threshold of taxable property.”
There was some discussion over when the city could anticipate actually receiving the additional $40,000 in taxes.
“At the end of five years it would have that value,” explained Bemis.
Bennett said metals are an uncertain commodity that continually fluctuate. Bemis said any added tax value will stay there “for quite a period of time.”
Following additional discussion on the need for some type of contract between the city and Bonville that the city would, after five years, receive the $40,000 via taxable property, Councilors unanimously approved Bonville’s contract to haul the city’s waste metal as proposed.
In other business, Council:
• Set a second public hearing for Sept. 8 to consider extending the duration of the current moratorium on the creation of new dwelling units on the first floor facing a public way between Maple and Blake streets in the Retail Business Zone;
• Approved Geary Bonville’s proposal regarding earth fill;
• Sold a parcel of land at the end of Canterbury Street to Harry Thomas for $6,000;
• Approved consent agenda items, including closing of Main Street on Aug. 26 for Main Street Mania;
• Cast their ballot for MMA 2010-12 vice president and executive committee members;
• Approved the Presque Isle Capital Improvement Plan (PICIP) and 2011 budget calendar as submitted by the city manager;
• Discussed a ‘special events’ funds to be added to the Forum’s special revenue account;
• Approved recommendations from the Presque Isle Development Fund’s Board of Trustees;
• Approved dispatch services for the Presque Isle Police Department, with the PIPD providing such services to the communities of Ashland, Mapleton, Chapman and Castle Hill;
• Approved a fire contract with the town of Chapman;
• Approved funding towards the Crown of Maine Balloon Festival;
• Approved supplemental funding for the landfill expansion;
• Approved the sale of tax acquired properties — Trombley Construction’s bid of $25,00 for 24 Allen St., Roger Pelkey’s bid of $18,000 for 25 Allen St., and North Haven, Inc.’s bid of $1,122 for 287 Washburn Rd.;
• Approved a release deed for Ferris Oil Company for a parcel at 900 Central Drive, with the restriction that no retail sales shall be conducted on or from the premises and the premises are to be used for storage of petroleum products, provided, however, that the premises shall not be used for the retail sale of petroleum products;
• Scheduled a workshop on Aug. 16 at 4 p.m. to discuss property maintenance enforcement, fiscal capacity analysis instrument and pavement maintenance system; and
• Approved purchasing Main St. banner hardware equipment.
City Council will hold its next regularly scheduled meeting on Wednesday, Sept. 8, at 6 p.m. at City Hall. The public is welcome and encouraged to participate. For more information, contact 764-4485. Sessions are aired on Time Warner Channel 16.
