OTISFIELD — The Board of Selectmen is close to finalizing an agreement that will allow 37 leaseholders in Heniger Park to extend their leases 99 years.

“We’re getting real close,” Chairman Hal Ferguson said. He and board members Rick Micklon and Len Adler received the final lease agreement draft from the Portland law firm of Bernstein Shur 90 minutes before their meeting Wednesday night.

The draft will be reviewed over the next few days and finalized early next week before it is sent out to leaseholders.

In June, annual town meeting voters gave selectmen a thumbs-up on their proposed agreement, which would extend leases on town-owned property next to Pleasant Lake by 99 years.

The draft agreement was based on many months of work by Ferguson and members of the Heniger Park Reassessment Committee. The group worked to come up with what they believe is a more equitable plan for lease.

Selectmen and a real estate attorney at Bernstein Shur have reviewed the plan for the past several months.

“This is the final product,” Ferguson said.

Residents unanimously supported the proposed agreement, which offers a 99-year lease if they agree to terminate their current 50-year leases in writing between Jan. 1 and June 30, 2015. The agreement would also revise the financial agreement to benefit the town’s tax base.

The new agreement is expected to be sent to leaseholders next week. They can review the details and decide whether to accept it. If they do not do so within the given time frame, their lease will automatically revert to another 50-year lease.

The 100-acre parcel of mostly wooded land on Pleasant Lake was left to the town in 1943 by noted Broadway producer Jacob Heniger. His will stipulated that the Board of Selectmen decide what would be done with the real estate.

In 1965, the board drew up agreements allowing people to lease the 35 or so lots for fees ranging from $0 to $50 per year for 50 years. The leases expire between 2015 and 2032. Each agreement differed.

Also in 1965, leaseholders were allowed to build camps. Most did, paying taxes on the full value of structures, but not on the leased land. As the leases came close to expiring, selectmen decided it was time to review them to make the financial agreement more equitable for the town. 

ldixon@sunjournal.com

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