I would like to provide some facts, and fiction, as to why disbursing any more municipal tax-payer funds to the Katahdin Cultural Center, LLC, would be an unwise decision on the part of our current Town Council, as they work diligently to bring to an end the Budget Review and Deliberations for Fiscal Year 2007.

Items of Interest Resulting from the Budget Review and Deliberations for Fiscal Year 2006

• During the Budget Review hearing last spring, Hollowell approached the Town Council, requesting $100,000 in funds to support his business venture, but had to accept $30,000 that was approved by the majority.
• When questioned by former councilor Gail Fanjoy, he stated that he would have the façade of the building completed by July 4th, 2005, “with or without” the town’s help, “but with would be better”.
• Fanjoy stated that the $30,000, taken from the town’s surplus, would be a “starting point”---not an “ending point”.
• The project, first heralded as a "youth center," then a "community center", is now known as a "cultural center."
• No matter what name he gives the project, it was still an LLC, which was a “for-profit”, at that time.

Hollowell's Projected Annual Revenue and Expenses

• To accomplish his goals, "the Design Team" has provided projections on how self-supporting the Center can be.
• Rental income, service fees, admission, grants $173,440
• Salaries, benefits, part-time staff wages, maintenance, equipment, $150,000 supplies, utilities, heat, insurance, and taxes.
• Brochures and business plans continue to push the idea that the Millinocket Historical Society will be a predominant feature, claiming that they are interested in renting space, at a cost of $600 per month, from the future Katahdin Cultural Center.
• In fact, the Historical Society has stated that under no circumstances will they be located, or have displays, in the "cultural center".
• Katahdin Area Television (KAT) has also been slated as a potential rental entity at a cost of $300 per month, even though it is a non-profit organization with funding available only through sponsorship and donations.
• While there are two other coffee shops located in the vicinity of the proposed Cultural Center, one to the front of the building and another directly behind, I have to question the accuracy of the $400 projected income for including a coffee shop in the plans, as well as consider how this will impact these well-established businesses.
• Little has been said about the three retail businesses that will kick in another $900 per month.
• Hollowell's estimated income from rentals is sadly over-optimistic.

Interesting Information, Questions to Consider, Facts, and Fiction

• A Quitclaim Deed, filed on May 25, 2005, with the Penobscot County Registry of Deeds, granting transfer of title from Thomas St. John to the Katahdin Community Center, LLC.
• The Katahdin Community Center, LLC has also been known as the Katahdin Regional Community Center and Katahdin Cultural Center.
  • Is this an attempt to make us believe that they are a non-profit organization, as they approach their various fundraising activities?
• The fact remains that a Limited Liability Corporation (LLC), which is how they are legally known, can be a 501(C)(3), which is tax exempt, as of this year. I strongly urge our councilors to ask for proof of this, when and if he should ask the town for more money. (It should be noted that last year, an LLC was NOT a tax-exempt entity, according to the IRS.)
• As recently as November 23, 2005, they called themselves a community owned corporation, seeking $750,000, and selling blocks of four shares at a cost of $1,000 per share.
• It seems this figure has recently changed to $1,000,000. With this kind of money, one could purchase land and construct a new building from the ground up.
• A mortgage is held with the Millinocket Office of Bangor Savings Bank, dated May 25, 2005.
• A promissory note in the amount of $119,700 plus interest matures on May 25, 2006.
• Information provided by the Katahdin Cultural Center website, in their attempt to solicit investors, states that "Phase I, currently in progress, is in the form of a $200,000 loan from Bangor Savings Bank, collateralized by donors' deposit accounts. This loan has been used to purchase the building (at a cost of $50,000) and to begin funding an estimated $100,000-$120,000 in cleaning and construction costs to establish a heated, ADA and code-compliant structure, ready for further remodeling and development".
• The "Borrower" is Katahdin Community Center, LLC, or in this case, Samuel Guilds Hollowell, Jr., Member of Katahdin Community Center, LLC.
• Various addresses are referred to for the "Borrower", including 10 Penobscot Avenue, 10 Katahdin Avenue, 20 North Terrace, Apt. C., Millinocket, Maine.
  • Verification from tax records shows that one, if not more, of these addresses are non-existent.
• In the January 16, 2006, edition of the Bangor Daily News, Millinocket Town Councilor, Jimmy Busque, was quoted as saying, “I regret voting to give money to a for-profit-organization. Our understanding is that the building would be fixed up, an eyesore would be cleaned up. It hasn’t happened yet. It should have.”
• Hollowell, in the same newspaper article: “Although the building looks unchanged, the $160,000 paid “to do all the demolition work”, including asbestos removal, the digging of the stage theater, and the removal of old fixtures. The building is prepared for the new construction called for in the plans.”

Hollowell approached the council at their annual budget meeting last year, intentionally misrepresenting the facts in order to receive money from “our” town. His request was made knowing full well that he was not a non-profit organization. If you attend the budget meeting on April 10th, from 4 to 8 p.m., you can hear for yourself “the facts” as Hollowell presents them. Draw your own conclusions and attend the public hearing, which will be scheduled later on, and be prepared to speak out at that time, if you are as concerned as I.

Related Article: Interesting Stuff From the Katahdin Cultural Center