Staff Writer
LIMESTONE — Property use and lease negotiations were the main topics focused upon at Loring Development Authority’s board of trustees meeting held on Oct. 24 at the LDA Board Room in the Loring Commerce Center.
LDA President and CEO Carl Flora brought to the board’s attention the fact that the restructuring of the mortgage debt for Tin Cup Land Company, LLC properties has yet to be resolved. The board agreed that more than ample time has been allowed for this situation to be settled and voted unanimously to begin looking at foreclosure proceedings at their next board of trustees meeting in January should the situation still remain unresolved at that time.
Flora presented the board with a lease renewal request for Frontier Transport. Owned by Kevin Bouchard, Frontier has leased Nosedock No. 22 since October of 2007. Frontier has indicated it would like to continue leasing the property for another five years. Flora advised that rent and lease terms would remain essentially the same with a slight increase in rent and that he was in favor of renewing the lease. The board unanimously approved the matter.
A new use for LDA’s Building No. 3360, commonly known as the Youth Center, was discussed. The building has been vacant and was extensively vandalized with major components of the heating and heat distribution systems removed and has deteriorated significantly over time.
Flora reported to the board that Marcel Bosse and a group of RC model airplane and car enthusiasts have approached the LDA with a proposal to lease the Youth Center and lot for 20 years. In lieu of rent, the group would use their members and financial resources to repair the building, improve its exterior appearance and install a simple heating system.
The club’s intention is to use the building as a place to meet and operate their remote-controlled vehicles, but they may eventually also look at opening an RC hobby shop.
A majority of board members felt that the lease would need to include a clause that the building could not be sub-leased and that the lease should be in five-year increments instead of the proposed 20 years. The board also felt it would be necessary for the club to pay rent if they opened an actual business and that the group would definitely need to carry an insurance policy that at least took care of demolition costs should an accident occur and the building was destroyed. Flora noted these conditions and agreed to discuss them with Bosse for further negotiation.
Flora updated the board on a situation with an apartment building that was purchased from the LDA by a landlord who lives in a state other than Maine. The landlord has decided he no longer wants possession of the building and is in the process of selling it to someone who intends to use it for something other than an apartment building. Checks the landlord has sent to the mortgage company and local utility companies have been returned for insufficient funds.
The apartment building is being foreclosed upon and electricity and heat have been shut off. Most of the residents of the building have relocated with the exception of one, who was going to be moving soon. The LDA holds the water and sewer lease and will be forced to shut those services off as well. No action was required of the board since they do not have actual interest in the property other than the water and sewer lease. Flora was just keeping the board informed and updated.
Flora also updated the board on the Loring Health Center, which is operated by Pines Health Services. Currently Pines is paying rent to the LDA for the facility and the LDA is providing heat. Flora advised the board that with the inefficient heating system in the building, the heating costs are extraordinarily high. He is going to propose to Pines that they pay the heating bill in lieu of rent. According to Flora, Pines’ future at the facility is uncertain. Flora will update the board on what transpires at their next meeting.
U.S. Senator Susan Collins responded to Flora in a letter about the LDA’s interest in establishing a missile defense facility in northern Maine. Flora shared the letter with the board. In the letter, Collins advised she has forwarded the request on to the Missile Defense Agency and will keep the LDA updated on any progress that is made.
Other topics discussed included routine approval of their September meeting minutes; approval of the treasurer’s report; approval of an independent financial audit; and adoption of a policy on travel, meals and entertainment as required by the enactment of LD 1843, a Maine House of Representatives bill that deems it necessary for quasi-independent state entities to have such policies in place.
The next board of trustees meeting is slated for January of 2013.
