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Nov. 25, 2016
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Millennium moves ahead with lawsuit against city, county
by Edward French

 

     Millennium Marine USA and the boatbuilding company's owner, Cory Guimond, are proceeding with a lawsuit against the City of Eastport concerning its leasing of the city-owned former Guilford mill building, according to the company's attorney, Joseph Baldacci of Bangor. Also listed in the suit are City Manager Elaine Abbott, the five Eastport city councillors, the Washington County government and County Manager Betsy Fitzgerald.
      Baldacci says the attorneys for the city and the county have received the lawsuit. Although Millennium is proceeding with the suit, he adds that he is hopeful that a resolution can be mediated with the city and the county.
     City attorney Dennis Mahar, though, says the case not been filed in Washington County Superior Court in Machias and the city has not been served with the complaint. Although Baldacci did send Mahar a draft of the suit prior to an October 26 court hearing to evict Millennium from the building, Mahar has not heard anything since then. He adds, "Should they commence the action, I expect the city will vigorously defend the suit and bring any mandatory counterclaim the city may have."
      According to the complaint, Millennium is seeking $226,662 in damages and also claims to have suffered losses of $430,000 because of defaults by the city and county, including business interruption and lost sales caused by delays in repairs following a fire at the building.
Short‑term lease agreement
      While Millennium is proceeding with its lawsuit, the boatbuilding company and the city have reached an agreement on a short‑term rental, until next June, of the "Olson space" in the mill building. Attorney Mahar reports, "The city went to court to evict Millennium Marine. The parties negotiated the judgment on the morning of the scheduled hearing."
      The judgment, issued on November 4 by Judge David Mitchell of the Maine District Court in Calais, states that Millennium will rent the Olson space for the sum of $1,975 per month until June 26, 2017, at which time the city will obtain a writ of possession from the court clerk. Payment must be made on or before the first day of the month by cashier's check. If Millennium violates the terms of the court order, including being one day late in arrears, the city may immediately obtain a writ of possession.
      Included in the agreement is the language that Millennium shall hold the city "harmless for any health or safety violations or issues regarding the suitability of the Olson space" for Millennium's operations. Mahar explains, "The city wanted to make sure Millennium Marine, and the rest of the world, knows that the city still believes the small space is not adequate for building boats."
      City Manager Abbott says that the rent amount does not include any utilities. While there is a sprinkler system, she is unaware of there being an air ventilation/filtration system and suggested contacting Cory Guimond for more information. Guimond has referred all questions to his lawyer. Abbott says that the Olson space has no running water or restrooms. "To the best of my knowledge, Mr. Guimond has a port‑a‑potty." Millennium employees will not have access to other parts of the mill building.

History of dispute
      The dispute between the city and Millennium over rent payments to the city and money owed to Millennium boiled over earlier in the year when the city told the boatbuilding firm to leave the mill building by July 19. At the time Guimond vowed to continue working in a section of the building.
      On April 21 the city sent Guimond a notice to quit the premises within 90 days for failure to pay the March and April rent amount of $17,000, with May and June's rent of another $17,000 also not having been paid. According to city officials contacted at the time, Millennium had previously owed back rent to the city. Guimond reported at the time that he intended to continue to operate in the smaller Olson space, while he had vacated the larger section. He maintained that the company was owed "a considerable amount," over $600,000, and that he intended to take legal action against the city.
      At a special city council meeting held on April 25, the council proposed that the city would waive rent owed for March, April and May and a new lease would be negotiated for the period beginning June 1, 2016, through December 31, 2016. The rent would be reduced from $7,200 a month to $3,750 a month for the main section of the mill. The reduced rent amount would cover the premium of the mill insurance of $52,000, which had doubled after the building caught fire in July 2014, so that taxpayers would not be subsidizing the cost. The lease for the Olson space, which Guimond had stated he no longer required, would be canceled without penalty. New lease negotiations would occur in January 2017, and provided there was increased financial stability within Millennium Marine, a rent payment of $4,750 would be instituted for 2017. The offer also stipulated that Millennium would pay outstanding personal property taxes owed to the city, that rent would be paid on the first of every month and that failure to pay rent would result in a seven‑day notice of eviction. This offer, though, was rejected by Guimond, the city manager said at the time.

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