TOWN OF EAST MILLINOCKET
SELECTMEN’S MEETING MINUTES
MONDAY MAY 17, 2010
9:00 A.M. 

PRESENT.  Selectmen-Chairman Mark Scally, Jim Federico, Larry MacKenzie, Gary Macleod, Mark Marston, Administrative Assistant Shirley Tapley, Lincoln News Shelley Farrington.  Meeting is recorded. 

1.  EXECUTIVE SESSION.  Motion made and seconded to hold an executive session pursuant to 1 M.R.S.A.SEC 405 (6) (E) to discuss mediation matter regarding Great Lakes Hydro America tax abatement request. Attorney Rob Crawford may be called if needed. Carried 5-0.    IN:  9:00 A.M.     OUT:  9:15 P.M. 

Decision.  As a result of executive session Chairman Mark Scally made the motion to take a vote to accept the Settlement Agreement between Great Lakes Hydro America and the Town of East Millinocket.  Motion was seconded by Jim Federico and carried 5-0. 

Chairman Scally explained that this agreement has settled many years of doubt and anxiety regarding possible paybacks that could have amounted to considerable amounts of money. Scally said in a nutshell the tax abatements for 2007 and 2008 have been dropped and GLHA will not pursue an abatement request for 2009.  The three ensuing years, the town has agreed to base valuations of $26 million for 2010, $25 million for 2011 and $25 million for 2012.  Scally explained that sticking points over the original settlement that got in the way was the interpretation of BETE or Business Equipment Tax Exemption and said that those differences have been settled to the satisfaction of the town Selectmen and it representatives Bill VanTuinen and Attorney Rob Crawford.  Another original dispute was over the allocation of value of the dams which now has been settled at 81% for the Town with the State receiving 19%.  Chairman Scally stated in conclusion said that in essence this was a successful mediation and that this worked out best for all parties. Scally said this issue can be put behind us and now take a more prospective view. 

2.  OTHER.  None 

3.  ADJOURNMENT.  9:25 A.M.