Sale of Lots in Industrial Park
We have had four inquiries for industrial park lot sales in the past two months. I would like the Board of Selectmen to give me some specific guidance on what prices to sell the lots for, how to conduct the transaction, and permission to market the lots immediately. First, Otis Gray inquired about a lot on which to build a small sawmill – probably a 6,000 square foot building. I recommended our Spruce Street lot to him. Second, Phil Ward has indicated an interest in trading his lot in the Moosehead Industrial Park for a lot in our Industrial Park. Phil should have some more specifics for us soon. Steve Hinkley has inquired about lots in the park off Cota Drive. He and his brother are interested in buying up to two lots for a small business. Finally, a gentleman from a Jackman-based logging company inquired today about a lot or series of lots off Cota Drive in order to build a truck garage for maintenance of woods equipment.

Previous lot sales held certain EDA required stipulations, including the creation of at least one full-time job. We have this language and can add it as a condition of sale. Purchase price of the lots have ranged from $5,500 each to $7,500 each. But these prices were for lots larger than those in Cota Drive. Previously sold lots sold for these amounts and acreage:

Lot #3 – Moosehead Cedar Log Homes (now John Pepin) – 5.45 acres - $5,960.88
Lot #7 – Doug Whitney / RH Foster – 5.80 acres - $6,343.09
Lot #13 – Richard Gould – 5.32 acres - $5,818.70
Lot #13 – Mike Theriault – 5.58 acres - $6,128.07

Following these prices, I would recommend the following prices for the "Cota Drive" lots (using the price-per-acre amount of $1,093.74 used in the previous values):

Lot #1 – 1.81 acres - $1,979.67
Lot #2 – 2.76 acres - $3,018.72
Lot #3 - .97 acres - $1,060.93
Lot #4 – 1.02 acres - $1,115.61
Lot #5 - .92 acres - $1,006.24
Lot #6 - .96 acres - $1,050.00
Lot #7 - .93 acres - $1,017.18
Lot #8 – 1.11 acres - $1,214.05

In addition to these smaller lots, there are three remaining "larger lots" off Sheridan Circle (the paved turn-around). I feel because these are in "wetter areas" that the Town should offer them at a reduced price. Using the $1,093.74 per acre rate, the following sized lots would go for the following prices. I have added at the end a suggested reduced price for some of them.

Lot #10 – 5.6 acres - $6,124.95 -- reduce to $4,000
Lot #11 – 6.0 acres - $6,562.44 -- reduce to $4,500
Lot #12 – 5.4 acres - $5,906.20 -- reduce to $3,500

Lot #2 – 2.76 acres - $3,018.72 -- reduce to $2,000

In review with Dick Gould, our Code Enforcement Officer, the reduced prices reflect limited space on the site for development due to wetlands, soil conditions, topography, or other considerations. All lots are developable to some extent. If you agree to these prices, the previous method used for sale of lots has been much lot that for hangar leases: a sale agreement is written, certain conditions are agreed to in accordance with EDA requirements, and the closing occurs at a Selectmen's Meeting. Apparently, permission was given by Town Meeting action several years ago to allow for the Selectmen to sell these lots. The only two additional lots which would be available in the Industrial Park would be those off Spruce Street. The Town needs to resolve issues with Mr. McBrierty on one lot. The other lot is the so-called "Town lot" used by Public Works for overflow of materials and buildings. The Spruce Street lot is 3.2 acres in size, according to our records. Using the aforementioned rate per acre, this lot should sell for $3,500.00. Considering the improvements we have made to the lot, the Town might want to consider a higher purchase price, such as $5,000. This could offset the potentially lower cost of certain lots of Sheridan Circle. Income derived from lot sales, in the past, have been placed into a special account for lot sales. Eventually, these accounts were transferred to the economic development account. We have a plan to take 25% of the annual revenue derived from the Moosehead Cedar Log Homes TIF and place it into an Industrial Park Development Reserve Account for capital projects in the park. I would recommend that eventually the revenue from lot sales be placed into the same account for the same purposes.