Mayo Mill Dam articles moved to June 10 ballot

DOVER-FOXCROFT — Voters will decide the future of the Mayo Mill Dam and its associated costs when they go to the polls on Tuesday, June 10 to cast ballots on the Dover-Foxcroft referendum ballot. 

Two articles concerning the dam were approved as written at the annual town meeting on Saturday, April 26 in the first of a two-step process.

The first of these articles, if passed, would authorize the select board to raise and appropriate $250,000 and have the authority to borrow up to $250,000 (for a total not to exceed $500,000) to begin consulting work to surrender the dam’s Federal Energy Regulatory Commission license. 

The cost to surrender the license for the first dam-related article is yet to be determined, but expenses for consults, legal work, engineering studies and more could total between $300,000 and $500,000.

The board had opted to abandon plans to pursue hydropower at the Mayo Mill Dam due in large part to a lack of financial sustainability. Renewal could have cost $1.2 million. A consultant will need to be hired for the license surrender no matter what happens with the dam.

The second dam article asks residents to authorize the select board to borrow up to $9 million for the retention and repair of the dam. The amount to be borrowed is based on the total estimated project costs but excludes financing costs and potential funding offsets. 

A “yes” vote on the second dam-related article authorizes the town to pursue said borrowing for retention and repair. A “no” vote authorizes the Dover-Foxcroft Select Board to remove the Mayo Mill Dam without using local taxpayer funding, including by entering into an agreement with outside parties for the removal of the dam and to develop a plan for a restored riverfront to be negotiated and approved by the select board acting in the best interests of the town. 

If approved, the projected annual cost to the town for the dam’s repair is $664,000, which will result in an expected rise in property taxes (based on 2025 assessments) of approximately 9 percent, or 1.5 mil, for property owners for a period of 25 years. 

Financing the $9 million over 25 years, with a 5 percent interest rate, would put the project cost at $14,107,600, including the $5,107,600 in interest.

The June vote comes a year after Dover-Foxcroft voters rejected a referendum article — via  count of 557-441 — to remove the Mayo Mill Dam, indicating they were in favor of using tax money to fund studies, permits and repair costs for the structure. No financial figures were included in the 2024 ballot question.

“There is a very long and tedious and expensive process to relinquish the dam license,” Select Vice Chair and Dam Committee Chair Steve Grammont said about the first of the two dam articles. He said the Federal Energy Commission license needs to be surrendered regardless of what happens with the dam and the process could take about a year and a half.

The potential costs are broken up into two years’ budgets, with authority granted to borrow up to an additional $250,000 rather than call for a special town meeting.

“We don’t wish to borrow the $250,000 but we want to have the ability to,” Grammont said.

The cost for dam retention and removal is uncertain. Grammont said $9 million is the best estimate based on current knowledge before the town gets into the construction process.

“In the end if there is a bill to be paid we would have to come back before the town and ask for funds,” Grammont said about a scenario with additional costs. He said dam removal would be less expensive than keeping and maintaining the Mayo Mill Dam.

For more than two years, two different dam committees have looked at the downtown site to determine options. Gordon Contracting of Sangerville has recently provided an approximate $8 million estimate for dam repair.

Grammont said additional time to study the dam would likely result in cost increases.

On June 10, residents will also be asked to vote on a proposed $8,576,770 municipal budget with the financial warrant articles each being approved as written at the town meeting.

The bulk of the proposed budget is nearly $7.36 million for town operations, up from $6.5 million-plus a year prior as part of the $8.3 million 2024-25 budget. After the application of close to $1,329,290 from revenues and surplus, a net total of $6,029,480 needs to be raised for town operations. 

A question was posed about $200,000 for the Villages Project, part of an $825,000 item including another $425,000 for local improvements and $200,000 for bridge improvements. 

The Village Partnership Initiative is a program of the Maine Department of Transportation’s community-based planning program. MDOT will use investments and municipal infrastructure, such as the historic village core and/or downtown, to bring a feel and character that many historic towns had as a means to revitalize rural economy in the state of Maine as well as improve quality of life.

A conceptual design has been completed, so the $200,000 will help take Dover-Foxcroft into the design phase, Interim Town Manager Alsina Brenenstuhl said. The project will allow for bicycles, pedestrians and vehicles to all safely share the downtown along East and West Main Streets from Essex Street to about Dunkin, create a distinct look and feel and create a sense of place.

The MDOT Village Projects is intended for rural communities that serve as service centers for the surrounding area, Select Chair Tom Lizotte said. “The state funds $10 for every $1 from the town,” he said about improvements.

To accomplish all the improvements would cost approximately $20 million.

Public meetings have been held on the Village Project for attendees to envision what the space could look like, board member Cindy Freeman Cyr said. Minutes and maps are available online. 

In the 2024-25 budget, $100,000 was earmarked for sidewalk improvements, but this number was reduced to zero for 2025-26. 

When asked about the change, Lizotte said, “This was taken out as a cost-saving measure so it wouldn’t impact the budget. That was a hard cut we made in order to keep the overall budget down.”

Town officials are aware many sidewalks are still in need of repair, but the elimination of funding was made during the series of budget meetings.