Staff Writer
The Aroostook Band of Micmacs wants to put about 300 acres of land it owns in Caribou in trust, taking the property off the city’s tax base. As a result, the land would not produce any tax revenue for the city.
The municipality could lose almost $20,000 in taxes, according to City Manager Steve Buck. The issue was a topic of discussion during a City Council meeting last week. Besides the financial implications, city officials also discussed whether the city could continue providing municipal services, such as fire and police protection, when the property becomes a Micmac trust and is considered “sovereign.”
“Does the municipality have the right to cross over their line” without some type of agreement, Buck told the council last Tuesday.
The band has applied to the federal Bureau of Indians Affairs asking that the land, off the Doyle Road, be put into trust. There are about a dozen single family dwellings on the site, according to city officials.
Recognized by the federal government in 1991, the Aroostook Band has about 1,000 members, most of whom live in Aroostook County. The Micmac Nation numbers 29 bands with about 30,000 members throughout the Northeast and Canada.
The Aroostook band owns land throughout Aroostook County, including acreage at the Loring Commerce Center, Presque Isle and Littleton. In Caribou, the band owns about 500 acres.
According BIA officials, the proposed use of the property is to provide single family housing for band members and to increase the tribal land base. The final decision as to whether the land is put into trust will be made by the U.S. Secretary of the Interior, according to a letter received by Buck from the federal government.
Putting land in trust guarantees that the land remains protected, according to Bob DeAngelis, the Micmacs’ tribal planner.
“That’s the main reason why all tribes do it,” DeAngelis said on Friday.
The band official said that he understood why the city may be concerned that it’s losing tax revenue. The federal government approved a $232 million program to compensate municipalities for non-taxable lands.
“If the tax base is really being hurt, they (city officials) should approach the government for this money,” said DeAngelis.
He said that the state had received $211,807 from that program.
DeAngelis anticipated that the land may be put in trust by the first of the year.
Some of the Caribou acreage already is in trust, but the city is receiving an annual payment in lieu of paying property taxes, known as a PILOT. Before a new trust is established, Buck said a PILOT should be negotiated with the band to keep the city from losing more money.
The annual amount of property taxes levied on the 300 acres is $19,164, representing 0.3 percent of the total taxable base, according to a letter Buck wrote to BIA officials in Nashville, Tenn. The land is valued at $183,700, while the buildings on the property are valued at $767,400, according to city officials.
Coupled with other tax exempt property in the city, the “city is already burdened,” Buck wrote.
The city provides municipal services for all of the Band’s lands. In addition, the city’s letter cites the cost of educating three Micmac students within the city’s schools at $20,124 annually. An additional payment for education is “not outside the realm of normal,” the letter said.
Any revenue taken away from the city must be made up by other taxpayers, according to Buck’s letter.
“The city finds this detrimental,” the letter said.
During the council meeting, the issue of continuing municipal services to the property in trust, was discussed.
While some council members said that no one would deny the Micmac band the services of the city if there was a fire or other problems, other councilors cited a liability problem if the land was in trust.
“If there was a fire, every one of our firemen would go out,” said Councilor Mark Goughan, referring to the possibility of not responding to an emergency. “In reality, no one’s going to enforce it. That’s the type of people we are.”
Buck explained that if land is in trust, the property is sovereign and owned by a separate nation. The city manager cited one instance where the police chief worked with federal law enforcement officials on whether he had the authority to go out there regarding a problem.
“There are jurisdictional issues,” Buck said.
Newly appointed council member, Robert Albert, said that the city could be setting itself up for a liability suit.
“You have to draw the line somewhere,” Albert said.
Another council member, Doug Morrell, questioned whether information about code violations within the Micmac housing had been forwarded to BIA officials. At this point, Buck said, the information had not been forwarded.
Buck said that a similar issue is occurring in Littleton, where the Micmac Band also wants to put land in trust. He and that town’s manager have been working together on whether the two municipalities can share legal expenses as they work through the issue.
