Local
A Cultural Center or Parking Lot?
By Ken Anderson
Feb 19, 2007 - 12:16:15 PM

MILLINOCKET -- Five days ago, a Millinocket town councilor circulated an email amongst other members of the council, suggesting an action that has been met with applause from some members of the community, and with anger from others.

In his email, Councilor Scott Gonya argued that it was time to do something about the Newberry building.

"We have allowed this undeveloped building to threaten the public healthy, safety and welfare of our citizens," Gonya wrote. "The building's present condition endangers life and property by fire and/or unsafe conditions."

He went on to suggest that the council use its power of eminent domain to take the property and demolish the building, utlizing the space to accommodate more parking, a green area, or a combination of the two.

"I believe this building is also hurting our attempts at economic development for the downtown district," Gonya added. The old Newberry building is one of the first things that visitors see when they turn onto Millinocket's business district.

Two years ago, the town council granted $30,000 in public funds to the developer, S. Guilds Hollowell, who has proposed to use the building to house a community center, teen center, cultural center, or business enterprise, depending on whether he is soliciting public funds or trying to sell shares in the business venture.

Many, including members of the council, have asked for an accounting as to what was done with the money, since there have been no recognizable improvements made to the building, which remains empty, boarded up and flooded, according to people who have entered the premises. While Hollowell has appeared before the council, he has not satisfactorily accounted for his use of public funds, according to some members of the council, and when he has tried, his numbers have been contradictory.

Last August, Councilor David Cyr demanded an accounting of how public funds had been spent by the Katahdin Cultural Center. In a letter to the town manager he asked that Hollowell be required to give a public accounting of his expenditures thus far.

"When Mr. Hollowell came to the public for financial assistance and administrative support for his grant proposal, he in turn owes that public an accounting of the funds he has used," wrote Cyr.

The manager passed the request along to Hollowell and David Nelson, the council chairman. Hollowell replied with an email, stating that, on the advice of his attorney, he would not publicly disclose this information.

Subsequently, Hollowell did appear before the town council, but his answers were unsatisfactory and contradictory according to Cyr.

Now, we have learned that Hollowell is seeking state funding for his project.

After the Magic City Morning Star broke the story of Gonya's plans for the Newberry building, Lisa (Pelkey) Hayes, a partner of Hollowell, and self-appointed spokesperson for the Katahdin Cultural Center, wrote to members of the council, arguing against Gonya's suggestions.

In her letter, she revealed that there was a Bill before the Legislature that "will bring in the final $150,000 we need to complete our financial package," wrote Hayes, who added that they were waiting for final approval of the Bill, allowing the developers to begin construction in early spring.

"Keep in mind that once complete, this building will be worth in excess of $1M, folks," said Hayes. "I would like to think that this is something we can all be proud of."

Contacted by email, Rep. Herb Clark, representing District #10, which includes the town of Millinocket, confirmed that a Bill to provide state funding to Hollowell had been filed, but Clark reported that the correct amount was $126,000, not $150,000 as stated by Hayes.

According to a former Legislative staffer, an "after deadline" Bill, once approved by the Legislative Council, would next go to the Revisor's office, then to the House. The House then, would refer it to a committee for a public hearing, work session, and recommendation to the full Legislature. If not dropped along the way, it would end up with the Appropriations Committee eventually.

Even if the Bill were to gain approval there, actual funding would depend upon the availability of funds, and the actual amount distributed, if any, will not necessarily be as stated in the original Bill.

Still, Gonya's suggestion is expected to be debated during Thursday's meeting of the council, and it is expected that council members will position themselves along familiar lines. Initial responses from other members of the council suggest that this may be the case.

Councilor David Nelson, who is chairing the council for the second consecutive year, agreed that something needed to be done, but indicated that he would be willing to give the developers time to do this, if the council were assured that there was a plan in place.

"I believe that if a business plan, renovation plan, and actual accomplishment of work are started and begun, the Katahdin Cultural Center will benefit the entire region," wrote Nelson, who suggested the removing the building should be a last resort.

Conlogue stated that, based on inspections that were made by Mike Noble, the town's code enforcement office, "the building's construction is such that the likelihood of a collapse or other structural failure is extremely remote."

Conlogue will include this issue in his Manager's Report so that the council can discuss any steps that it might wish to take, whether it be scheduling a presentation to the council by the Katahdin Cultural Center or discussing the acquisition of the property.

Councilor Matthew Polstein agreed with Nelson's assessment.

"It is my understanding that the group working on the Community Center has a lot in the works and is making reasonable progress," wrote Polstein. "If that is the case we owe it to them to give them reasonable time to proceed."

No responses were received either from councilors Bruce McLean or Wally Paul, who usually vote with Polstein; or from councilors Jimmy Busque and David Cyr, who have previously expressed dissatisfaction with the lack of progress made by the group representing the Katahdin Cultural Center.

While seeking public funds for the Katahdin Cultural Center, Hollowell has often represented the project as being a non-profit venture yet, as of a few months ago, no applications had been made with the Internal Revenue Service for non-profit status, and Hollowell has stated that the building itself will remain in his name, and he has repeatedly sought investors, leaving open the question of whether this is truly a non-profit community venture or a private business enterprise, which he intends to profit from.

The next meeting of the Millinocket Town Council is scheduled for February 22, 2007 at 4:30 p.m.