Dover-Foxcroft seeking Opportunity Zone 2.0 status

DOVER-FOXCROFT — The town of Dover-Foxcroft is pursuing an Opportunity Zone 2.0 designation, a program intended to help attract private capital into designated low income communities.

“This is a program that if everything goes right is a designation that will have financial benefits from the state,” Select Board Chair Steve Grammont said during a meeting on Monday evening.

Investors can have enhanced tax incentives in Opportunity Zone 2.0 communities. These include deferral of capital gains taxes when reinvested into qualified opportunity funds, a reduction in taxable gains through basis step-ups tied to holding periods and the potential elimination of capital gains on investments held for a decade or more 

The incentives continue to serve as the primary mechanism for bringing private capital into the designated areas. By reducing tax liability, Opportunity Zone 2.0 status increases the appeal of investing in projects that might otherwise be considered financially marginal.  

“Greenville is the only participant in our county from the last round,” Town Manager Alsina Brenenstuhl said. When asked, she said she has not yet spoken with Greenville Town Manager Mike Roy about the program.

“There is significant growth in that area,” Brenenstuhl said, unsure if this is directly tied to Greenville having received Opportunity Zone 1.0 status or not.

Communities across the state apply and 25 of 78 census tracks would be designated by Gov. Janet Mills, to go into effect as of Jan. 1, 2027. There is no cost to participate. 

Brenenstuhl was authorized to pursue Opportunity Zone 2.0 designation for Dover-Foxcroft.

In other business, the select board met with Code Enforcement Officer Nanette Redmond to discuss ordinances in need of updating.

Redmond said right now if a landowner comes in seeking a permit and she knows they are in violation for something else then there is not much she can do. An update to the land use ordinance would correct this.

The shoreland zoning ordinance was last updated in town in 2019 and since then the state has made amendments, so this will also need to be adjusted.

“We can be more stringent but we cannot be more lenient with what they have in the flood plain,” Redmond said about one change made by the state in the last half decade.

A public hearing on the ordinances will be needed with approval to be made at the April 25 town meeting and then on the June referendum for a 2-part process.

The select board opted against having the town serve as a fiscal agent for non-profit organizations when these entities apply for grants.

“Typically we haven’t done that and it would definitely have to be on a case by case basis,” Grammont said at the start of the discussion. 

Most grants awarded to non-profits involve reimbursements so there would be some liability for the town to make sure everything is done correctly. This would require a contractual agreement, as well as extra time for municipal office staff.

“Implementation of it is not something we really want to consider,” Grammont said at the end of the discussion.

The morning prior the Maine Maple Sunday Breakfast returned to town for the first time since before the COVID-19 pandemic. The meal was hosted at Foxcroft Academy by the school and Kiwanis Club of Dover-Foxcroft with proceeds benefiting Kiwanis Charities to support the renovation of Kiwanis Park.

“I will say it was really nice to have the pancake breakfast back in action,” Grammont said.

Selectperson Cindy Freeman Cyr said she did not realize the impact the event had on the community, as she saw some fellow breakfast goers she had not seen in quite some time. Freeman Cyr was impressed by the Foxcroft Academy students volunteering at the meal.

“That was a huge success,” Brenenstuhl said about the Maine Maple Sunday Breakfast in her report.

She said meal proceeds will go toward new playground equipment at Kiwanis Park, off Park Street behind the Piscataquis Area Community Center. The equipment will follow other improvements such as dredging of the pond and to the walking trails and footbridge.

The town manager cleared up some confusion over transfer station hours with the facility being closed that day due to staff undergoing DEP training.

“There’s no change to any hours and/or additional days of closure,” Brenenstuhl said.

During public comment the board heard from resident Randy Soileau who previously had expressed his concerns with the Dover & Foxcroft Water District practices, Soileau said he found nothing in his research indicating the town does not have the power to dissolve the organization and he suggested possibly consolidating it with town water and sewer.

“We haven’t done anything in terms of meeting with the water district or meeting with lawyers or any of that,” Grammont said. The chair said while Soileau would be in favor of dissolving or merging in some form, town officials are not ready to weigh in.

Brenenstuhl has not spoken with water district trustees or staff yet, she hopes to attend the next meeting. The town’s legal counsel is researching the matter.

“We’ll maybe have some more information at our next meeting,” Grammont said.