The Lincoln Street parking garage, lower left, and Bates Mill No. 5 behind it. Russ Dillingham/Sun Journal file photo Buy this Photo

LEWISTON — The City Council will vote Tuesday to approve next year’s Capital Improvement Plan after receiving some guidance from the Finance Committee and Planning Board.

Among the recommendations made to the council regarding the 2021 plan is to fully fund a citywide revaluation over the next two years, as well as commit environmental cleanup funding for Bates Mill No. 5.

The annual CIP is an outline for future construction projects and other capital expenses. The most immediate part of next year’s plan calls for $9.7 million in city bonding, and $17.5 million in bonds for projects by the School Department, and water, sewer and stormwater departments.

Prior to City Council approval each year, the Finance Committee and Planning Board review the project list, which is generally a lot shorter by the time next year’s budget is approved this spring.

BATES MILL

For the last few years, recommendations from the Finance Committee and Planning Board on the CIP have often centered on the uncertain future of Bates Mill No. 5, but due to a federal grant that must be spent, the boards are backing environmental cleanup work needed to redevelop the property.

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The $500,000 U.S. Environmental Protection Agency grant awarded to the city must be spent by September 2022, and the CIP provides matching funding.

Roughly half of the Bates Mill cleanup is coming through the federal Brownfields grant that will help pay for getting rid of lead paint, asbestos and PCBs, a group of man-made chemicals that were widely used in electrical equipment.

The city and Platz have utilized Brownfields funds to do similar work at other Bates Mill buildings that have since been redeveloped. In February 2018, the City Council extended an agreement by three years to give Platz exclusive rights to buy the 350,000-square-foot building for $1. That means the agreement expires in one year.

The Finance Committee’s recommendation this week “strongly urges the City Council not to extend the option further,” but recommends moving forward with the environmental cleanup.

“The Finance Committee recommends moving forward with the site cleanup, keeping in mind the cost differential between developing Mill 5 and demolishing it, by proceeding with what can be done in the coming year on asbestos and lead paint remediation until more information is known,” the memo states.

The Finance Committee adds, “The City Council should proceed with extreme caution before locking in future contracts that are not to Lewiston’s benefit.”

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Next year’s CIP also includes initial funding for an expansion of the Lincoln Street parking garage, which is tied to the entire Bates Mill redevelopment.

The initial funding would pay for architectural and engineering costs, while another $12.6 million for construction appears in the 2022 Capital Improvement Plan. That bond amount would likely require a voter referendum.

REVALUATION

The Planning Board’s recommendation on the CIP suggests the City Council should fund a citywide revaluation over the next two years, rather than the proposed five-year span.

A revaluation, typically implemented every 10 years, is done to assess the proper value of all real estate and personal property. Lewiston has not done a full revaluation since 1988. A 2006 revaluation was mostly completed but never implemented.

A $575,000 revaluation has appeared in the city’s CIP over the last few years but never funded.

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When asked about the project by the Planning Board, City Assessor William Healey said the estimated cost for a revaluation includes “a public relations program, physical inspections, creation of valuation models, upgrades to our assessing computer programs, review, value notification mailers, and hearings.”

He estimates it would take two years to complete.

“My past experience has been that it is extremely difficult to get full funding for a revaluation in an annual budget,” he said, adding that he had instead requested $115,000 annually over the next five years to begin the project “in year five.”

Lewiston homes, on average, are assessed and taxed at 82% of their full market value, while commercial and industrial properties in Lewiston are assessed and taxed at 91 percent of their value.

A revaluation would equalize those values, shifting the tax burden slightly away from businesses and toward residential property owners.

Despite the length of time since a revaluation has been done, the city meets state standards for assessments.

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SCHOOL DEPARTMENT

Both the Finance Committee and Planning Board have also recommended cuts to the Lewiston School Department’s CIP funding.

The recommendations center on the School Cepartment’s recent audit that found $4.3 million in unspent funds. The Finance Committee’s memo states the School Department’s requested $1.15 million in bonding should not be included in the CIP, and that the department should instead use its fund balance to pay for the items.

The Planning Board’s recommendation states that the School Department’s request be reduced to $500,000.


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