SADC’s McLaughlin outlines pending Houlton projects
By Elna Seabrooks
Staff Writer
HOULTON — Economic growth in Houlton may have legs despite the nation’s troubled economy. “Things are looking very good for 2010 for different projects. I think it will be a very busy summer and I think a lot of things could come to the forefront which is pretty exciting considering the economy,” said Jon McLaughlin, executive director of the Southern Aroostook Development Corporation (SADC).
McLaughlin gives an overview of the town’s prospects in this interview with the Pioneer Times for at least four projects that could create jobs, build up the tax rolls and help keep the mil rate under control.
Housing complex nears completion
Houlton Pioneer Photo/Elna Seabrooks
NEARING COMPLETION — Eligible senior citizens may be able to start moving into this three-story apartment complex in downtown Houlton this summer. The project is, according to the developer, set for completion in July with five of the 28 units set aside for tenants with visual impairments.
According to McLaughlin, officials of Coastal Enterprises Inc. (CEI), developers of apartments being built just off Market Square, expressed appreciation for their relationship with the town. They still project completion of the 28-unit senior citizen housing complex by July of this year. It will have wood-pellet heating for the building, solar-panel heating for hot water and affordable rents for seniors.
CEI is considering another possible project in Houlton and looking at a couple of possible sites since “they were very well received in town,” said McLaughlin.
Start-up pellet company
Although Andrew Durkovich, owner of Aroostook Pellets, has not yet signed a lease for land at the airport, McLaughlin said “he is looking to create a new pellet manufacturing operation that hopefully will be up and running by late summer. And, the company has been approved by Shiretown Development Corporation to lease property at the airport.”
According to McLaughlin, Durkovich is also looking at an option to rent space from Chad Walton in the former Houlton International Building. The start-up phase, said McLaughlin, could bring about 12-15 jobs to the area. Additionally, it would also bring indirect benefits to local wood contractors who would supply materials for the manufacturing process.
On top of that, there is a benefit to the town’s revenue stream. If the pellet company leases space, Walton’s property would become more valuable on the tax rolls. If Durkovich builds it still increases the tax rolls. “Either way it’s good,” said McLaughlin.
Rail service
Maine DOT is considering the purchase of about 240 miles of railroad tracks from Millinocket to Madawaska since Montreal, Maine & Atlantic Railway (MMA) has filed a "Notice of Intent" to abandon them which could negatively impact at least two area businesses.
The biggest impact in the greater Houlton area would be on Louisiana & Pacific (LP) in New Limerick and Tate & Lyle in Houlton. If the rail shuts down service, they would have to find an alternate method of transporting their products.
“It would be particularly hard on LP because their new product [oriented strand lumber] can be up to 65 feet long which cannot be shipped by truck. So, if they don’t have the train it would be tough for them,” said McLaughlin. He added that “it could mean scaling back on jobs. Right now they’re scaled back because of the economy. They were up to about 160 jobs before the economy went to pieces. Now, they are down to about 88 or so. When the economy turns around they would be back up to about 160 people if the railroad is there.”
Tate & Lyle, a multi-national company headquartered in London has a facility in Houlton that produces modified food starches and sweeteners for food products and industrial use. The company is also known for producing the high-intensity sweetener Splenda.
Tracks worth millions for salvage
If MMA is successful in getting the abandonment, said McLaughlin, “they have the right to come up and tear up the actual, physical tracks. And, they’ve said the metal is worth about $6 million as scrap. If they do that, it would leave just a gravel bed.”
“Since the state probably wouldn’t want to buy abandoned tracks, it leaves open the possibility for a naturalist group to want it for recreational trails leaving the two big users without a means to transport their products,” he added.
Possible solution
Maine DOT has applied for a Transportation Investment Generating Economic Recovery (TIGER) grant to purchase and maintain those railroad tracks. Word on the $23 million grant request could be forthcoming within a matter of days or weeks. If successful, the funding would allow DOT to purchase the tracks, lease them back to MMA and keep the line going.
Smith & Wesson expansion
By March or April, McLaughlin said, Smith & Wesson will finish two new firing ranges after already having completed an expansion. With those additions and about 170 employees, “they are maxed out. If they keep growing the way they plan, at some point, they will have to expand again. It would mean a new addition to the building, with a resulting increase in the tax value of that piece of property which, again, means more revenue. That’s good because besides increasing employment, it would increase taxes to the town.” 
Houlton Pioneer Photo/Elna Seabrooks
HIGH TECH — At Smith and Wesson’s Houlton plant, precision instruments measure accuracy.
There may be more good news on the horizon for Houlton. At their last meeting, the town councilors went into executive session with McLaughlin and Wade Hanson, Houlton’s community development director. The stated purpose was “discussing economic development issues that premature disclosure of the information would prejudice the position of the town.”
As some might say in situations like this — “stay tuned.”
