Gardiner council approves 10-year credit enhancement deal for P and M Realty after public comment; 5-1 vote

The Gardiner City Council on March 5 approved a credit enhancement agreement with P and M Realty LLC that will return $30,000 a year to the company for 10 years, a vote that passed 5-1.

Council supporters said the revised agreement—smaller and shorter than an earlier proposal—helps retain an existing business in the city and generates net new tax revenue that would not exist without the project. Opponents said the council did not secure measurable performance metrics showing a clear public benefit.

The Economic Development Committee, chaired by Debbie Willis, reviewed the application and recommended the CEA after examining the project’s claimed economic impact, tax revenues and the TIF district implications. Willis told the council the committee had reviewed the applicant’s materials and voted unanimously to forward a recommendation to council. The committee noted the facility freed up commercial space in the Commonwealth TIF District and identified an annual tax revenue figure the committee described as roughly $84,000 tied to the improvement.

Resident Delia Lunsford spoke during public comment, describing household hardship from rising taxes and urging the council to consider equity for long-term lower-income residents. A written letter from resident George Trask, read into the record, urged approval and described the agreement as a fair compromise that benefits both the city and the business.

In debate, Councillor Rusty Greenleaf and Councillor Tim Cusick said the agreement preserves a building and investment that otherwise could have located outside Gardiner and that the city will benefit from assessed-value growth beyond the capped rebate. Councillor Gaye Grant said she would not support the application, arguing the city did not receive enough concrete, enforceable performance measures about who will benefit from the proposed museum and that the project appeared to be viable without city assistance.

Councillor Cusick moved to approve the credit enhancement agreement; the motion was seconded and passed 5-1. Council records show the lone recorded no vote was from Councillor Gaye Grant.

The agreement designates a portion of the parcel as the “museum CEA portion” for the purposes of calculating the rebate; the city manager and legal staff will carry out the final execution and implementation steps.

Council members said the CEA now on the table is smaller in amount and shorter in duration than the version considered in December and that the city’s TIF designation and prior work with the applicant predate some paperwork delays that postponed earlier council action.

The council’s approval concludes the local legislative review; the city manager will finalize and execute the contract documents.