Houlton OKs lease to Bangor pellet firm

Houlton OKs lease to Bangor pellet firm


By Jen Lynds
BDN Staff

HOULTON, Maine — Town councilors approved a lease with a new pellet manufacturing business on Tuesday evening that could bring up to 40 new jobs to the area.

Councilors voted 5-0 in favor of the lease, which was negotiated between the town and Aroostook Renewable Energy, a group of partners doing business as Aroostook Pellets.

The businessmen from the Bangor area will pay $240 a month to lease a parcel of land at the Houlton International Airport Industrial Park, where they plan to construct a building.

Town Manager Douglas Hazlett told councilors the group has not started building, but has secured the majority of the financing needed for the project.

Some residents attending the meeting had questions about the project, asking for background on the company and expressing a desire to see the business come to fruition. Hazlett assured them the town was optimistic the business would be constructed and would open. Once operational, it could bring up to 40 new jobs to the area, he said.

Hazlett said the business could not buy the land because the town and the Federal Aviation Administration own it, thus it can be leased but not sold.

The town also has taken steps to assure the project will come to fruition.

If the business does not construct the facility in a year or if the financing falls through, the town can terminate the lease. The town also reserved the right to terminate the lease at any time with 90 days’ notice.

Council Chairman Paul Cleary was enthusiastic about the project, classifying it as a major win for the municipality.

“This could possibly create up to 40 jobs,” he said, adding that it also would establish a new business in town.

A company profile indicates that Andrew Durkovich is the primary contact for the business, but he could not be reached for comment Thursday afternoon regarding when construction might begin.

jlynds@bangordailynews.net

538-6567

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Comments
12 comments on this item

I'd be darned if I would start consructing a buildind on land where the lease could be terminated at anytime with a 90 day notice.

I am glad that the town is letting in a new business, but I am confused about the lease agreement. Why would the town be able to terminate the lease at anytime??? It's not like the Houlton Airport is going to grow anytime soon if at all. To me it kind of sounds like the town wants the business here but then they don't. I try to stay positive about Houlton because I live in the area and would love to see it grow, but the town has some messed up ways of doing business. I wish I could run for council at times....too bad I live on the outskirts.

I have to agree with wallyo. I have toured several of these facilities and the investment is huge. Why would anyone build one on lease ground ? I do think the location is good because these facilities are noisey and they also put out great of bit of emissions so by building in that location should allow them to operate with few compliants. The biggest problem these pellet mills have are blowing up or burning down. I believe we have lost three in the state of Maine in the last year or so. But I still would like to see Houlton get some jobs.

Well I never heard from the BDN for my comment, but I will give it now.

This is the second project we have done in the town. We are investing there because of the efforts of the town and their ability to make us feel welcome. Both the people of Houlton and the Town Government have been extraordinary in this process and the past endeavor there. We still have a few hurdles to cross but are looking forward to being a continued part of the landscape and the community of Houlton. Thanks to all that have helped us with the process.

Andrew Durkovich

Having listened to the council meeting, they said that the DEVELOPER can cancel in the first 90 days, not the town. That gives the developer an out if they can't get financing.

You should want to know, what was really said, behind the closed doors. Where are all the jobs that where promised, up that way for another project? They always seem to bring a focus on jobs, a large number, but they have failed at it each time, so far. I wonder what the deal is, concerning the value of the building, if they leave, what do we pay. Remember, we bought the Houlton International Building, and we have lost so much money on pipe dreams. To my knowledge, it has not been paid off. That deal has so many holes, the moon has less craters. I am all for realistic job creation, but none of the numbers used in the past, have come about. They are selling something to us, that will bite us later, I fear.

i think it's great that there is a business wanting to do business in houlton. whether they create 1 job or 40 jobs in the town what does it matter? it's a business wanting to come to our town. in this economy if someone wants to open a business and are able to then more power to them. i think it's good they are coming here

Brianwhite, you seem to find flaw in everything and think everything is a conspiracy. Run for council if you want to make a difference, or maybe you have in the past.... I agree things are not perfect but all I read are complaints and allegations against the current council, it's easy to point fingers and complain. Why don't you enlighten everyone on some solutions to make it better??

I think with the National Starch building in Island Falls up available for business, that this company is making a bit of a mistake by going through the process of building a plant. The starch factory has been completely gutted and has a lot of open room for new equipment to be brought in. Also, I am quite sure that the cost of doing business in Island Falls is much less than that of Houlton. Taxes up there are quite a bit higher.

there are also a lot of other pluses to the Island Falls facility that they should check into, one being a work force of about 37 that just lost their jobs,

wait Island Falls, now that the Starch Factory isnt there your taxes will be going up and it wont be cheaper. In fact what does Island Falls have to offer compared to Houlton, look at all the services that we have and businesses compared to Island Falls. I agree whether its 1 Job or 40 jobs lets be happy.

Now mouthyshire, think about it, if a business took over the factory, they would be taking the tax bill for that property thus helping the tax base here in Island Falls. In turn it would help all in the community compared to the now empty starch factory building. The mill rate down here is only about 18, which I believe you in Houlton are over 22. It would also help the business owners by being in an area that is starving for work and would have people available and eager to fill out applications and bend over backwards to make sure the plant was successful. After the loss of the starch plant, I think a harsh sense of reality has hit our community and that anyone who opens a business of any magnitude here would be very glad they did so. To note the services and businesses in Houlton as a big plus to a business owner in the area serves no real value. Pellets will sell no matter where they are made, having the Taste of China down the road isn't going to make the cost of the pellets be less or the workers more apt to show up on shift.

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