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Commercial Fisheries News
Volume 34 Number 3
November 2006
Maine working waterfront aid draws interest
AUGUSTA, ME – In early October, the Working Waterfront Coalition met to discuss the progress being made on implementation of the Working Waterfront Access Pilot Program and the current-use taxation measure, both of which were endorsed by voters in last year’s general election and signed into law in June.
The Working Waterfront Access Pilot Program, which is being funded with a $2 million set-aside from the Land for Maine’s Future (LMF) bond issue, is an opportunity for the commercial fishing, aquaculture, and direct-service industries to obtain financial grants of up to 50% of the cost to purchase property or development rights that will directly provide access for and support to commercial fishing activities.
The Maine Department of Marine Resources (DMR) has hired Coastal Enterprises Inc. (CEI) and the Island Institute as contractors to handle the Working Waterfront Access Pilot Program application and proposal process, according to Cindy Smith of DMR. Together, they make up what is being called “the working waterfront team.”
Early this year, DMR put out a request for proposals and began taking applications on June 1.
“We have had over 100 inquiries with questions coming from municipalities, including a right-of-way for clammers, a co-op purchase, and owners of property wanting to sell their development rights,” said Willow Rhealt of CEI.
Nov. 1 is the last day to submit applications and proposals to the pilot program. A 10-member review team with backgrounds in fishing, lending, and real estate will be reading proposals and selecting candidates. Those candidates will be given to DMR Commissioner George Lapointe, who will present them to the LMF board for review and final selection.
“We expect the $2 million will be committed by January or February of 2007,” said Hugh Cowperthwaite of CEI.
The working waterfront team reported having some hurdles to overcome, including the high cost of real estate appraisals, which have been running up to $6,000.
Maine is the first state in the nation to address protection of working waterfront properties. Since its inception, the working waterfront team has been fielding calls from officials and individuals in several other coastal states interested in the effort in Maine, Rhealt said.
Development rights to any property acquired through the program will include a provision that the property may not be used, altered, or developed in a manner that precludes its use by commercial fishing businesses in the future.
Additionally, the state of Maine will retain a right of first refusal on the property in order to ensure its continued use by fishing businesses in any future transfer of the property.
Current-use taxation
Also in November 2005, Maine voters approved an amendment to the state constitution to add fisheries-related working waterfront property to the list of properties taxed according to current use rather than fair market value of the property.
David Ledew, director of the Property Tax Division for the Maine Revenue Service (MRS), gave a presentation on how the current-use tax on properties with commercial fishing activities will work.
The MRS has been drafting a question-and-answer format bulletin for use in explaining the law to selectmen, tax assessors, and other municipal officials. Ledew said he expected the draft bulletin to be finalized by the end of October.
The current-use tax method is already in place for tree growth land, open space, and farms. The working waterfront current-use taxation provision is modeled after these programs.
Local municipalities will continue to assess working waterfront property but provide value at its current use. If assessors cannot determine the working waterfront property value, then they may use an alternative valuation process. The final property tax will be based on the estimated market value reduced by a percentage as presented in the draft bulletin.
Vinalhaven was the only town the MRS had met with as of early October, according to Ledlew.
“Vinalhaven has a distinct working waterfront district,” he explained.
The MRS will be providing outreach and working with all coastal cities and towns in Maine to bring the assessors up-to-date with the new law.
Contact info
For more information on the Working Waterfront Access Pilot Program and Maine’s working waterfront current-use tax law, contact Hugh Cowperthwaite at CEI or Jen Litteral of the Island Institute.
Cowperthwaite may be reached by phone at (207) 772-5356 ext. 120 or e-mail at <hsc@ceimaine.org>.
Litteral may be reached by phone at (207) 594-9209 or e-mail at <jlitteral@islandinstitute.org>.
Information is also available at this state web site: <www.wwapp.org/index.cfm>.
In addition to Cowperthwaite, Litteral, and Smith, other Working Waterfront Coalition members who can answer questions include:
• Patrice McCarron, the Maine Lobstermen’s Association;
• Susan Swanton, Maine Marine Trade Association;
• Jim Connors, Maine State Planning Office Coastal Program;
• Sebastian Belle, Maine Aquaculture Association; and
• Joey Donnelly, The Boathouse in York Harbor.
Rosanne Mizzoni
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