Council Meeting Monday Night On the Future of the Maine State Pier

Dear Friends,

As supporters of Ocean Properties' proposal for redevelopment of the Maine State Pier, you are no doubt as distressed as we are about the slow progress the city has made since awarding a contract for the job last December.

This Monday at 7 pm, the City Council will consider approval of a "term sheet" for development of the Maine State Pier by Olympia Companies. This document sets out the responsibilities of both the developer and the city in moving forward on this project. We believe, however, the term sheet is as rickety and leaky as the pier itself, and raises many important issues, such as:

The start date for construction can be as late as November 2011, more than three years from now, and can be extended for "good cause," which translates to any reason at all.

1. Olympia will lease the site for 75 years, but make no payments until 2032. In other words, the site will be rent free for 20 years, and tax free until Olympia or some other entity builds commercial buildings at the site. This is far less than the company offered in their original proposal.
2. The term sheet requires the developer to obtain financing from the Finance Authority of Maine (FAME) for reconstruction of the pier. Whether this is even possible, and what impact it will have on taxpayers or the city's credit rating, is unclear.
3. The developer is not required to build a megaberth. Remember, this was a key factor in city's decision to award the contract to Olympia.
4. There are no identified tenants for the office building or hotel, and Olympia has not said if it has obtained financing for the project.

These are only some of the questions that now surround the city's deal to rebuild the Maine State Pier. There are many more which will undoubtedly arise at Monday's council meeting.

Please come and offer your thoughts about whether this is a good deal for the city. This is an important meeting for the future of the pier and the future of the city. Let's make sure it's done right.

Sincerely,

Friends of the Maine State Pier