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January 22, 2016
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Boatbuilder chastises councillors, says rumors about firm unfounded
by Lora Whelan

 

      Chastising the Eastport city councillors at the January 13 council meeting for releasing information about the $25,000 he owes in back rent was Millennium Marine owner Cory Guimond. Standing before the sparse audience and the council, he said that he had hoped there would be more people present, including some of his employees, to hear him dispel "rumors" that had been circulating while he was away during the Christmas holiday.
     Guimond cited a list of reasons why he had not been able to sell his boats as quickly as he had planned when he moved into the city‑owned facility in Quoddy Village over a year ago, including delays in renovations and a fire after he had started his boatbuilding operation. He mentioned personal investments in the portion of the building that he rents. Along with company investments, Millennium received public grant funds for hiring and training purposes as well as for building renovations and the construction of hull molds.
     The City of Eastport had been searching for a composites‑related business to locate in the city‑owned Guilford mill building since it qualified in 2010 for a $1.4 million Economic Development Administration (EDA) grant, which required a $75,000 match from the tenant, and two Community Development Block Grants for business and job creation. One portion of the EDA grant was used for building upgrades and the other portion used for equipment purchase, including an exhaust ventilation system. The grant was a partnership between the county and the city. The Canadian boatbuilder expressed an interest in the facility, citing a lack of employees in the area of his Canadian facility as well as the Jones Act and the need to have his boats made in the U.S. for ease of access to U.S. markets.
     In an email interview, Guimond explains the current operations in Eastport. "It is true that the company is shipping boats to other yards to be finished. This was the plan from the beginning. This is not taking work from this area but rather adding jobs in a field that most can become part of if they so choose."
     Of the $1.4 million EDA grant, $524,000 was used for hull molds used by Millennium. According to Washington County Manager Betsy Fitzgerald, the terms of the grant require that the county hold the liens to the molds for 15 years, and the building itself cannot be sold by the city for the same time period. All the terms of the grant were met, and it was closed out in 2015. Of the match required of Millennium, there is still $27,388 outstanding, says Fitzgerald. However Guimond states, "There is a discrepancy on exactly who owes who what. Millennium, the city and county are in discussion regarding this balance and other balances between the parties."
     In the summer of 2014 the company was the beneficiary of the first CDBG Workforce Development Grant applied for by the City of Eastport. The $100,000 grant was used to fund a portion of Millennium's employee training during a six‑month period. Millennium projected a six‑month total salary and benefits cost of $264,506, of which it planned to bankroll $164,506. The application detailed employee costs for a six-month period: eight employees trained in fiberglass, laminating, gel coating and grinding at a cost per person of $18,470; one custom construction and detailing at a cost of $23,088; one in all aspects of construction and management at $44,400; one in all aspects of fiberglass and gel coating at $24,627; and one in all aspects of boat assembly and quality control at $24,627. A second grant of $100,000 was successfully applied for and drawn‑down for the same employee training purposes. Both grants were closed out in June 2015.
     Guimond says, "Millennium has employed a high of 30 employees in 2015 and averaged about 25 throughout the past year. All positions are full-time. Today, Millennium currently has 14 people working and would have many more had employees not quit due to the spawn of negative rumors."
     In addition to the grants, the City of Eastport provided the Guilford mill space free of rent from May 2014 to May 2015, for a value of $86,400, or $7,200 per month.
     When Guimond asked for an apology from the city for releasing the back‑due rent information to The Quoddy Tides, the council responded by asking City Attorney Dennis Mahar to explain the Maine Freedom of Access Act and the legal requirement that the city answer such a question about a business in a city-owned facility from anyone who asks.
     Guimond presented to the council $15,000 in cash with a promise that the remaining $10,000 in owed rent would be paid the week of January 18. He also presented proof of insurance and other paperwork required by the city.
     Guimond says, "Millennium is financially secure and has plenty of work ahead. I have over $1,000,000 in assets and inventory that is owned outright and have been working with a local bank to secure a loan to help with costs of fabricating additional molds and purchase of new equipment. In order to qualify for commercial loan, the company had to first file two years tax returns. The 2015 returns will soon be filed, and the company can proceed with its expansion as planned." He adds, "Despite a few naysayers and troublemakers, Millennium will remain focused and continue to grow as planned."

January 22, 2016    (Home)     

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