An impending tax package from Gov. John Baldacci might include a local-option sales tax to raise money for convention centers, including the conversion of the empty mill that dominates Lewiston’s western gateway.
After months of internal discussion, a spokesman said Baldacci is still undecided.
Business, development and tourism officials who were treated to a peak at public funding ideas at a recent state-sponsored forum had mixed reactions.
A 1-cent tax on food and lodging in Androscoggin County would bring in $1 million a year, City Administrator Jim Bennett said Wednesday.
“My sense is that would probably not help us build the thing,” he added – it’ll take $30 million to $40 million to renovate Bates Mill No. 5 – but the funds would likely offset the losses once it was up and running.
Last summer, Baldacci signed an order directing state agencies to explore methods of financing convention centers and tourism infrastructure across the state. Portland and Bangor have long wanted to replace their aging facilities, but haven’t struck on a way to pay for it.
Among the initial ideas: a “pillow fee,” sales tax exemption around the building site, and meals and lodging taxes, enacted locally or statewide.
The Portland Regional Chamber has already endorsed a locally adopted, “non-burdensome,” meals and lodging tax.
“I’m hoping the governor brings it forward,” President Godfrey Wood said. “We think it’s an important tool for creating new jobs, investing in our future. Wouldn’t it be nice to see some cranes on the skylines across Maine?”
The Maine Merchants Association is opposed, with spokesman Jim McGregor saying local-option taxes encourage people to cross county or state lines to shop, ducking the tax.
“Maine is the top-taxed state in the country, we have grave reservations about imposing a new tax, no matter the reason,” he said.
The Androscoggin County Chamber of Commerce will wait to see details before taking a position.
“On balance, the business community would be hugely in favor of” seeing the mill transformed, President Chip Morrison said. “There would be more motels, there would be more shops, there would be more restaurants, all of that grows with a convention center.”
Bennett said he doesn’t believe a local-option proposal would pass out of the sharply partisan Legislature this session.
If it becomes an option, “we’d actually look at it. We’d have to get more serious about what we are going to do with mill No. 5,” he said.
He wants to see development there, Bennett added, but doesn’t want local taxpayers to shoulder the entire project.
“There’s been some real discussion about trying to coordinate a museum space in there,” he said.
The building is currently empty, its last short-term tenant a company with a storage contract for L.L.Bean.
Bennett said there have been a half-dozen inquiries about holding small meetings or shows in the mill, which haven’t worked for various reasons. Two months ago, serious interest came from the organizers of the Portland Flower Show, but Portland wooed them back.
“Think what 100,000 people over three days would have done for the area,” he said.
Baldacci policy adviser Alan Stearns said, “The governor is still considering whether or not to include a local-option tax in his tax reform package. (People are) still determining whether there is an appetite for that this session.”
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