Towns: litigation won't help

NORWAY —  Despite a signed contract between the town and the state for a $400,000 Communities for Maine's Future (CMF) grant, Town Manager David Holt told selectmen at their July 19 meeting that Norway and 10 other affected towns probably have no grounds to sue for those funds.

"Litigation, at this stage, doesn't solve the problem," he told selectmen.

In June, Governor Paul LePage froze $40 million in voter-approved bonds including  $3.5 million in CMF grants allocated for downtown revitalization in towns across the state. 

The CMF grant was intended to help restore Norway's 1894 Opera House.

Holt said that the towns have been jointly discussing alternative strategies to resolve the issue. 

Holt told of the July 18 meeting at Maine Municipal Association headquarters in Augusta with legal experts and officials from six of the 10 other affected towns. 

The initial idea, he said, was to take legal action –  but during the meeting, he and others learned that if towns decide to challenge the governor's action, it would probably not stand up in court. 

Holt said this is mainly because the statute states that the governor has a five-year window (with a possible two-year extension) to get the bonds. 

"The problem with litigation," Holt said, "is that it takes a long time ... there isn't any court that is going to hear a case about something the governor might or might not do in the future." 

As it currently stands, Holt said that the governor is expected to issue the bonds "sometime in 2014." Rather than wait, he said the affected towns are trying to develop another strategy to get the necessary funding sooner. 

If arrangements aren't made by August to release the funds, the affected towns agreed that they will begin working with their legislators to seek alternate funding for the projects. 

Other towns receiving grant funds include Skowhegan, Eastport, Livermore Falls, Monmouth, Rockland and Winthrop. 

Despite the $2 million in tax funds that have already been spent on projects in Maine, some projects can't proceed until alternate funding is available. 

Holt said that officials have heard, but have not received any formal notification about the bond freeze and whether funds will pull through. 

"None of us have received anything," said Holt. "We get these third-hand messages from folks ... We hadn't been notified. So I guess we will create our own letter of understanding and submit it to the governor's office to see if we can clarify what the situation is." 

Holt said that if only the governor's office could provide some indication that the funds will be released in 2014, the town of Norway can take out a Bond Anticipation Note (BAN) to move forward with the project.

The town would then get reimbursed in a couple years when the money becomes available, said Holt. 

The board of selectmen agreed to invite legislators to the next board meeting, August 2 at 7 p.m.