As the Boothbay Industrial Park’s newest business, a wood pellet manufacturer is seeking a tax rebate under the town’s Tax Increment Financing program. Erik Carlson, a professional forester and logger for 20 years, begins producing wood pellets in mid-July.

Between purchasing a one-acre plot at the industrial park, constructing a 40-foot x 60-foot building, and purchasing equipment, Carlson told the Boothbay selectmen at the June 8 meeting, he has invested nearly $450,000 in his new venture. Carlson requested the town’s assistance in seeking tax advantages provided to TIF district businesses.

Town Manager Dan Bryer previously spoke to Carlson about tax incentives provided to new businesses. During the board meeting, Bryer reported Carlson’s business may qualify for a credit enhancement agreement. The town provides a tax rebate for TIF district businesses that increase their properties’ values and hire more workers. Boothbay already has such agreements with Washburn & Doughty and Hodgdon Yachts. 

Bryer reported the agreement provides an incentive to TIF district businesses to expand their operations. The TIF district receives the enhanced tax value of the property and the two businesses receive a 75 percent tax rebate on the property’s increased value.

Carlson has already qualified for the state tax breaks. He has received his Pine Tree Zone certification which qualifies his business for reduced income, sales, and payroll taxes. The Pine Tree Zone requires that businesses provide at least four full-time jobs within the next four years. The state program also requires recipients to pay employees at or above the county’s median income level.

Carlson expects to pay his employees $22 per hour. His operation begins next month with one employee and he expects to add three more by 2020.

The selectmen want to negotiate a credit enhancement agreement with Carlson. The board directed Bryer to begin negotiating with Carlson and bring back a draft version for their review.

“I like what you’re doing there and I wish you well,” Selectman Steve Lewis told Carlson.

The selectmen also spoke with another Industrial Park tenant. Mid-Coast Machine Fabrication owner Mike Tomacelli complained about Industrial Park Road’s condition. Tomacelli described it as a “jigsaw puzzle” which has needed repairs for years.

“I’ve driven the road for 25 years and it gets worse every year. There are potholes that could bend a car’s wheel,” he said.

Selectman Chuck Cunningham agreed with Tomacelli. He believed the road needs attention this summer.

“We’ve talked about this for 10 years. It’s time we do something about it,” Cunningham said.

The Industrial Park Road is not on the town’s summer paving schedule. But Bryer believes the town can fund maintenance work on the troubled road. He suggested using TIF funds to pay for road improvements. Bryer will seek repair estimates and submit them to the board.

“This project is perfect for the TIF funds. I just need to talk to (public works director) MIke (Alley) about the cost,” Bryer said.

In other action, the selectmen appointed Tracy Hyson to replace Town Clerk Bonnie Lewis for Fiscal Year 2016 ending June 30. Lewis plans on retiring June 16. The selectmen expect to reappoint Hyson to a full term when they consider Fiscal Year 2017 appointment’s later this month.

The selectmen are also preparing to fill three vacancies on the planning board. Two prospective candidates have expressed interest, and two more may follow, according to Bryer.

The five-person planning board has four members and no alternates.  The selectmen plan to invite Planning Board Chairman Alan Bellows to an upcoming interview session with the prospective candidates.

The selectmen will meet next at 7 p.m. on Wednesday, June 22 in the municipal room.