ROCKLAND, Maine — The company that wants to build a $200 million natural gas plant in the city has signed an option to purchase the properties where City Hall and the public services garage are located.
The sale, however, is contingent on subsequent votes of the Rockland City Council and a public referendum after a purchase and sales agreement is reached with Rockland Energy Center LLC.
Rockland Energy and the city signed the option on Aug. 1. The City Council had voted on May 1 to authorize the city manager to negotiate and execute the option.
City Manager James Chaousis said Monday that he is waiting for Rockland Energy to start the conversation on the purchase and sales agreement. He said the company plans to come forward but has not yet set a timetable for when it will begin the discussions.
The option stipulates that negotiations on a purchase and sales agreement must begin within 180 days of the signing of the option. That would mean discussions would begin by Feb. 1, 2016.
The sale would be contingent on Rockland Energy obtaining all permits needed for the natural-gas fired power plant as well as approval from the Public Utilities Commission of long-term contracts to sell electricity generated from the plant to either Emera Maine or Central Maine Power.
Rockland Energy is paying the city $1,000 a month for the option.
No sale price has been negotiated for the 18 acres owned by the city on Pleasant Street. City Hall and public services are located on adjacent properties.
Rockland Energy is owned by the principals of Energy Management Inc. of Boston. Company spokesman Evan Coleman, who signed the option on Aug. 1, has said the natural gas plant would provide significant tax revenues to the city, construction jobs, 12 to 18 permanent jobs that will pay more than $60,000 annually, and low-cost steam that could lower operating costs for other local industries. The cogeneration facility would generate both electricity and steam.
The plant would be fueled by natural gas, which would require the extension of a natural gas line that currently goes through Windsor at its closest point. The cost of extending the gas line would be $13 million to $20 million but that would be done and funded by a different company.
The city has scheduled a public forum for 6:30 p.m. Wednesday at City Hall. Councilor Larry Pritchett said three experts on energy issues will make presentations and answer questions from the public.
The proposal for a natural gas plant has been met with mixed response. Supporters say it would generate considerable new tax revenues for the city and low-cost energy for other local industries. Opponents have raised environmental concerns.
Amy Files of Renew Rockland, a citizen group opposed to the plant, has called for citizens to come to Harbor Park before the meeting and ride bicycles to the city meeting. The ride will begin at 5:45 p.m.