Dover-Foxcroft voters overwhelmingly reject spending $9M to repair historic dam

DOVER-FOXCROFT — Dover-Foxcroft residents overwhelmingly voted not to invest millions to repair the Mayo Mill Dam.

Residents voted down an article that would have authorized the Select Board to borrow up to $9 million plus interest for the retention and repair of the downtown Piscataquis River structure. The article was voted down by a more than 2-to-1 margin at 659-297 in Tuesday’s referendum.

With the majority of citizens voting not to pay for dam repairs, the Select Board is authorized to remove the Mayo Mill Dam. The vote comes a year after Dover-Foxcroft voters rejected a referendum article — via a 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.

The town will not use local tax money to remove the dam, instead entering into an agreement with outside parties for the removal of the dam and developing a plan for a restored riverfront to be negotiated and approved by the Select Board acting in the best interests of the town. 

The $9 million figure for dam retention and repair is based on the total estimated project costs but excludes financing costs and potential funding offsets. 

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 projected annual cost to the town for the dam’s repair would have been $664,000, 

which would have resulted in a 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. 

Another article authorizing the Select Board to raise and appropriate $250,000 and authorize the Select Board to borrow up to an additional $250,000 (for a total not to exceed $500,000) to begin consulting work on the mandated Federal Energy Regulatory Commission exemption surrender process was approved 511-389. This item was needed regardless if the town voted to repair the Mayo Mill Dam or not. The process could take about a year and a half.

The exemption surrender process 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.

The cost to surrender the license 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.