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October 14, 2022
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Reimbursement deal between flagpole developer, town stalls
by RJ Heller

 

     While the developers of the proposed Flagpole of Freedom Park (FFP) are planning to raise $1 billion to build the project in less than four years, they have balked at a request by the Town of Columbia Falls for $150,000 to be placed in escrow to cover the town's costs related to the project, saying it would tie up critical capital at this time.
      At the September 26 meeting of the Columbia Falls select board, it was confirmed that Worcester Holdings will not sign a cost agreement with the town while the town is still evaluating the project. On August 8, Worcester's attorney sent an email requesting that the town slow the annexation discussions and take a "pause" from its due diligence to allow the Worcester family time to reevaluate the project. The board at that time said they would continue with their due diligence. According to the town's attorney, Roger Huber, he advised the board that Worcester Holdings still intends to complete a land survey for the project.
      The reimbursement agreement -- a work in progress for some five months -- was to officially document that Worcester Holdings would reimburse the town of Columbia Falls for all costs related to the town's preparation for a land annexation vote specific to the FFP project. No reason for their decision was provided to the board.
      The annexation by the town of approximately 10,400 acres of unorganized territory, which a law signed by Governor Mills on April 18 permits, if the town approves, has been at the crux of many select board meetings since then. Annexation would bring the land Worcester owns in the unorganized territory into the coffers of the town's tax base. Columbia Falls, instead of the Maine Land Use Planning Commission, would then provide oversight and planning on the entire FFP project.
      Concerning the reason for Worcester Holdings' decision, Rob Worcester states, "All costs incurred by the Town of Columbia Falls have been paid in full and will continue to be fully reimbursed throughout the course of the project. The municipality's reimbursement agreement sought a significant cash investment upfront, which would have tied up critical capital at this stage of planning and development. With that said, the commitment from park developers to continue to reimburse costs invested by the Town of Columbia Falls remains in force." The town at the time was asking for a $150,000 commitment from Worcester to be held in escrow.
      In light of this information, the select board, at its September 26 meeting, discussed two matters with newly hired attorney Aga Dixon from the firm Drummond Woodsum. The town received a check for $28,291.19 from Worcester Holdings and accordingly has payables in that same amount for attorney fees and consultants relating to the project. Dixon previewed a draft order she prepared that would authorize the town's treasurer to deposit funds received from Worcester Holdings and to use those funds to pay for consultant and legal fees authorized by the select board as it pertains to the FFP project. The select board said that, for the time being, Dixon will work in tandem with Huber.
      Dixon then previewed a draft resolution outlining the board's commitment to the town with regards to the FFP project. Specifically, Dixon notes, "The select board is committed to ensuring that the voters of Columbia Falls are fully informed about the annexation proposal and its impact on the community before casting their vote and that the costs of the town's evaluation of those impacts are not shouldered by the taxpayers. Accordingly, the resolution incorporates by reference a draft agreement that formalizes the terms by which the town expects Worcester to pay for such costs."
      Expressing thanks to Dixon, select board Chair Tony Santiago said that this resolution is the board's official position on the project. "In short, we are committed to ensuring that every Columbia Falls voter has the opportunity to be fully informed about the project and its impacts on our community before casting his or her vote," said Santiago. "We expect that the costs to evaluate and consider the project will be extraordinary, and for that reason we are committed to ensuring that our taxpayers do not bear those costs. To that end, we have prepared a draft agreement for payment of fees and costs to the project developer through our legal counsel, and we look forward to hearing from them directly on that matter."
      In response to a public question on how the board plans to inform residents about the project prior to a vote on annexation, board member Nancy Bagley said, "We will schedule informational meetings for the public to attend. There we can share what we know about the project, which is not a lot right now. We still continue to wait for answers to a number of questions."
      The timeline for when the town will vote has not been determined. Worcester Holdings' request in August was a four- to six-week pause on annexation discussions with the town, but the company now admits they require more time, due to a number of factors.
      "Since our launch in March of 2022, our team has been humbled by thousands of individual founders who have signed on to this project," says Rob Worcester. "Based on the response, our team is exploring the business structure and formation to ensure that it's as inclusive as possible for those new partners. That exploration has delayed the need for quick action on annexation. We anticipated our discovery to take weeks, but for a project of this complexity, it is taking longer. The annexation is also a large decision for Columbia Falls. Our team also sees the dual benefit to allowing the municipal discovery process to unfold and for residents to become more familiar with the benefits this project will bring for Columbia Falls and for Washington County."
      On another note, the planning board hired attorney Amanda Methot from the firm Bernstein Shur. According to Philip Worcester, chair of the planning board, she will be reviewing the town's 2019 comprehensive plan as it relates to current and future policy needs. "She is going to help us put in place processes for a thorough review of current policies, ordinances and moratoriums, and then help us with respect to improving how we handle matters, such as the FFP project."

 

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