March 28, 2024
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Houlton council votes $20,000 more for business deal

HOULTON – The Town Council last week, sitting in its capacity as the Shiretown Development Corp., voted to authorize the use of up to an additional $20,000 in SDC funds to help a New Jersey business expand to this town.

The extra money, which is in addition to $15,000 approved Dec. 11, is intended to give Town Manager Peggy Daigle the flexibility needed to close the deal with Melton Sales & Service Inc. of Bordentown, N.J.

Councilor Michael Carpenter said he made the motions for the extra funding because “that’s what it’s going to take to get this done.”

Melton is considering expanding to Houlton and is eyeing a 60,000-square foot hangar and other buildings now occupied by Houlton International Corp. at the town’s industrial park.

HIC, a manufacturer of hardwood furniture components, has closed down, putting more than 50 people out of work.

Melton overhauls and remanufactures light-, medium- and heavy-duty military and industrial equipment for the United States and other countries. The company could employ as many as 40 people at wages of $13 to $14 per hour.

The town is working to put together a $2 million package of loans, grants and tax incentives to help Melton purchase the HIC facility and to renovate it to suit its own needs.

On Dec. 11, the Town Council gave Daigle the go-ahead to negotiate a deal with Pierce Atwood Consulting of Portland to assist the town for an initial fee of $5,000 and an additional $10,000 each if the deal goes through.

The supplementary $20,000 approved last week stipulates that up to $10,000 could be used for costs associated with negotiating a memorandum of understanding or purchase-sale agreement between HIC and Melton. Any greater amount would have to be approved by the SDC.

A maximum of another $10,000 was approved to cover the cost of any legal advice or financial work related to the project.

“What we want to do is figure out what it is we need to do for the community,” Daigle said. “Until we have a memorandum of understanding, we have nothing that says we can move forward with this project.”

Town officials, as well as representatives of the Southern Aroostook Development Corp., the Northern Maine Development Corp., Pierce Atwood and Melton will meet during the next two weeks to hammer out a sales package.

A special Town Council meeting to act on any negotiated arrangements has been set tentatively for 6:30 p.m. Wednesday, Jan. 8.


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