Opera House tax credits, ownership transfer on hold

NORWAY — Although mold and asbestos have been removed from the Opera House, Town Manager David Holt says that the town is still waiting on $200,000 in federal tax credits so it can proceed with renovating the building's storefronts and fixing the back wall.

Holt said that the ownership of the Opera House has not yet been transferred over to the Norway Opera House Corporation (NOHC), as was unanimously decided by the board in February, when the action was expected to take place.

"You voted to do that, but I was waiting for instructions from the attorney," Holt told the other selectmen at the May 17 meeting.

"I'm waiting from Nelson Toner at Bernstein Shur to say that I should deed it," he said.

He also said that he was concerned that the building required insurance, which NOHC has not yet purchased.

"I didn't want to have the building uninsured, by accident," he said.

According to Holt, plans for the Opera House are moving along, except for one thing. He said, as it turns out, the federal tax credits that are coming through Norway Savings Bank have to first be approved by the FDIC.

"It didn't occur to me," said Holt. "And that is not going to be easy."

"The delay by the FDIC may be so serious that we need to quickly look for someone else to do the federal tax credits other than Norway Savings," he said.

He pointed out that, as much as a two-year delay would be a $200,000 portion of the project the town can't do. He said that work on the storefronts can begin, but fixing the back wall may be a financial challenge.

Selectwoman Irene Millett said that she was hopeful that the transfer of ownership had already taken place. "Unfortunately, it has not," responded Holt, "but I think it can at anytime." 

He said the general consensus is that, "people want to see the Opera House saved, but [don't] want to see a lot of property tax dollars spent on the project."

During the meeting, Holt thanked Selectman Bill Damon for the $15,000 donation he and his wife made toward the Opera House project.

"Because they were so generous, and allowed the town to move forward to save the building, we had to find ways to try to make this work," said Holt.

In addition to the federal tax credits and state tax credits, which amount to $400,000, plans are to use $400,000 from a Communities for Maine's Future Grant received last fall, and $180,000 in private donations from NOHC.

"We're inching along," said Holt.

In other news, the board:

• Accepted a donation of $501 from the sale of scrap metal for the small equipment account.

• Signed an abatement of $4,843 for a mistaken assessment to G & T Realty on a building that had been removed.