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Eastport Maine
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January 23, 2014
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Transfer of piers being studied
by Edward French
and Lora Whelan

 

    Like the ugly Christmas sweater that nobody wants, the Eastport breakwater, following its partial collapse, is public infrastructure that gets regifted. The current owner, the City of Eastport, is trying to pass the breakwater and the fish pier off to the port authority, but that quasi-municipal body has sent a signal flag back to the city describing the fish pier as a possible "pig in a poke" and the breakwater rebuilding project as being short by perhaps $5.5 million.
     "There is an end to our benevolence," said Port Director Chris Gardner at the January 20 meeting of the port authority board, during which the city's proposal was considered. "We're trying to insulate the taxpayers from these two pieces of infrastructure," he explained concerning the plan, but he added, concerning the port authority's revenue stream, "If the [Woodland] mill shuts down tomorrow, the music stops."
     City Manager Elaine Abbott outlined the proposal, which includes that both the breakwater and fish pier would remain tax-exempt and publicly accessible. She noted that the city is not in a position to maintain or replace the facilities. Board member Dean Pike expressed concern that a future city council might change the tax-exempt status.
     Taking on ownership of the breakwater and fish pier would put "a significant drag on the port authority," Gardner said. He noted that some people argue that the port authority does not pay enough in taxes to the city. He pointed out, though, that the breakwater renovation project, which includes $2 million in port authority funding, could result in the port authority taking out a loan that would cost $21,000 a month in payments. Abbott stated that it would be "inconceivable" for the city to take on a $21,000-a-month payment. She calculated that would result in an eight-mill jump in the tax rate, which would mean an $800-a-year increase in taxes for the average homeowner with property valued at $50,000.
     Both the city and the port authority have liability insurance on the breakwater, but Gardner noted that the port authority's insurance "is going to carry the day" and suggested that the city should cancel its insurance. The city's structural insurance on the 1962 section of the breakwater had been cancelled last May.
     Because the condition of the fish pier is not known, the board agreed to contract with Childs Engineering, which has done the engineering for the reconstruction of the breakwater, to conduct an underwater and above-water inspection of the fish pier, report on its condition and make any recommendations. The $7,500 cost may be covered by the Maine Coastal Program.
     Gardner said the port authority will know more in another month, both about the fish pier's condition and the breakwater project, and the board tabled the proposal until its next meeting.

Council holds hearing
     The public hearing at the January 14 Eastport City Council meeting to discuss turning over the city‑owned breakwater and fish pier to the port authority had resulted in the council voting five to one to present the proposal to the port authority. Councillor Mike Cummings was the dissenting vote. He had made a motion, which died on the floor for lack of a second, to table action until further discussion took place with a possibility of taking the question to referendum vote.
     During the hearing, Port Director Gardner told the packed room, "The city reached out to us. This did not generate with the port." Council President Mary Repole began the discussion by explaining that the city has no insurance but liability for the fish pier and that it would cost the city tens of thousands of dollars just for insurance, "which we don't have unless we raise taxes." The breakwater, which has been leased to the port since around 2004, "will cost a fortune to insure, not to mention to repair," she noted.
     City Manager Abbott also explained the costs involved, with multiple issues facing both properties, noting the "incredible" amount of money needed for the different types of insurance necessary to protect the city, the public, fishermen and more. "We need to consider the true cost amount to maintain the pier and the breakwater." She added, "Looking at our resources, I don't believe we can afford to keep them."
     Abbott also said that the port authority's charter, when set up by the legislature, allows for such city‑owned facilities to be handed over to the port authority. Gardner explained, "It's a grey area. It doesn't have to be, but it gives the city the option to do so." He added that insuring the breakwater and fish pier has not been easy for the port authority. "Where it's leased to us, we can't insure it structurally because it's not ours."
     Eastport resident and planning board Chair Michael Morse noted the importance of continued public access being maintained and recorded on the deed agreement, if there is any change of ownership. Gardner assured the audience that "nothing would change" with the status of public access. When resident Denise Cassidy asked Gardner if the port authority wanted the two properties and if it could afford them, he replied, "Someone has to take it on, and we're probably more suited than the city."

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