Three people are here tonight to talk about the Working Waterfront Access Pilot Program and the Current Use Tax Program: Gerry Cushman of the Port Clyde Fisherman's Co-op; Jim Connors, Senior Planner for Maine Coastal Program; and John Flood, Tax Assessor for the town of Friendship.
Gerry Cushman begins with some history of the Port Clyde Fisherman's Co-op, and their recent participation in the Working Waterfront Access Pilot Program. The Co-op began in the 1960s with 30 fishermen. Gerry's grandfather and great uncle were some of the original members. In 1980 the Co-op purchased the Port Clyde Wharf. Several years ago Gerry received an unsolicited offered to purchase the Co-op property for over four million dollars. Despite, the allure of the offer, Gerry knew that selling the co-op to outsiders was not what his grandfather and uncle had in mind when they started the co-op fifty years ago. Gerry knew that to keep the wharf and the co-op in the hands of the fishermen the property needed to be tied to working waterfront.
This year, through the Working Waterfront Access Program, the Fisherman's Co-op was able to do just that. The Co-op sold the development rights in the property to the state for $340,000. With the money they restored and expanded the wharf, which this year will be worked by 28 lobster fishermen. In addition, the Co-op retains ownership of the property. As a result the wharf will be preserved for commercial fishing opportunities in perpetuity.
Next, Jim Connors explains the workings of the Working Waterfront Access Pilot Program. First, Jim acknowledges the hard work of the members of the Working Waterfront Coalition and legislators who support the program and played a vital role in its passing. Essentially the program relies on voter-approved bond funds to invest in economically significant waterfront properties, restricting commercial and residential development and preserving them as working waterfront.
This program has made Maine a leader in working waterfront preservation and many states addressing similar issues may soon follow Maine's lead. The program has even attracted the attention of national legislators. Right now there is a proposal before the House that would create a federal source of funds that would parallel the state program. This would provide additional funds for projects such as the one in Port Clyde.
John Flood, tax assessor for Friendship, Maine, is up next to talk about the Current Use Tax Law, which provides tax relief for Mainers who fish from their own property. John tells us that the town of Friendship has had approximately 12 fishermen interested in the Current Use Tax Program. He explains that if you are an individual who owns a boat, a dock, and an acre and a half of coastal land you can participate in the program. He warns, however, that individual fishermen are not the ideal candidates for the program. More specifically, individuals may be subject to penalties if they find themselves in a situation where they are no longer able to fish. For example, John tells a story about a 90-year old fishermen from Friendship who was walking along his dock and fell. He broke his hip and is no longer able to work his dock. This particular fisherman had expressed interest in the program, but decided not to do it. If he had entered into the program before he got hurt he would have been subject to a $57,000 penalty. That being said, John tells us that co-ops are ideal participants because if one fisherman gets hurt the co-op goes on and no one is penalized.
Questions and Comments:
Q: The fishermen were offered $4 million for the property, but the state only paid $340,000. Why?
A: Under the Working Waterfront Access Pilot Program, the amount the state pays is the difference between the fair market value of the property and the value of the property encumbered by the covenant.
Q: Who owns the land where the Port Clyde Co-op built the dock?
A: The co-op retains ownership of the land.
Q: Was there a push back from the town regarding tax shifting (tax dollars lost under the Current User Tax Program)?
A: No. The town of Friendship has been working very hard to keep their harbor a working harbor. For example, the town rallied and voted down a restaurant that wanted to go in on the waterfront. The members of the community think it is worth it.
Q: I agree that one of the problems with the Current Use Tax Program is the penalty imposed on individuals who are no longer able to work the land. If, however, that loophole was closed, are there fishermen who would be interested in the program?
A. Yes. There are about fifteen fishermen in Friendship who have been scared off by the penalty.
Q: A woman who wants to keep her property working waterfront had applied for the program, but according to her town's tax assessor she would not see any savings.
A: Sounds as if your town's tax assessor does not understand the program, because if you work the property 90% of the time, you would be entitled to significant savings under the Current Use Program.
Q: Are there other entities besides the state who would hold the covenant under the Pilot Program?
A: Yes and no. We have one project in York where the property is held by a land trust. You have to be careful and make sure that the trust is one that is designed to hold the land for the purpose of working waterfront. In the future we hope to develop a Fishermen's Trust. Typically, land trusts are not designed to hold easements over land that continues to be worked. That being said, land trusts like the Georges River Land Trust have expanded their vision and are looking for ways to acquire and manage easements to working property.
Comment: Combining the Current Use Tax Program and the Working Waterfront Access Pilot Project seems as if it is where the most benefit can come from.
Comment: In St. George, sellers have been taking the town's assessment of waterfront property, tripling it, and selling it no problem.
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Next: New information and tools
1 comment:
The penalty concept is a bit unclear. Can someone expand on what that means?
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