Eastport eyes Marlow Yachts’ purchase offer

On hand for a full house at the December 15 Eastport City Council meeting was David Marlow of Marlow Yachts of Palmetto, Fla., and Norsemen Shipyards of Xiamen, China, to answer questions about his proposal for Maine's Marine Technology Center that is owned by the city. Space at the center is leased by Husson University‑The Boat School, the Westlawn Institute of Marine Technology and Maine Sea Grant.
The nine‑page proposal suggests a purchase price of $850,000 for 20.8 acres of city property where the center's buildings are located, which would include all improvements, machinery and the seaplane ramp used for public access to Deep Cove, 11 acres of city property described as Broad Cove park currently assessed at $80,000, and approximately four acres of shoreland property east of The Boat School on Broad Cove assessed at $91,000. According to Eastport City Assessor Robert Scott, the 20.8-acre property has a $1.97 million assessed value as a commercial lot.
Marlow proposes that 25% of the $850,000 purchase price would enter the tax rolls at closing. At the fifth anniversary, Marlow would include 50% of the properties purchased on the tax rolls, "with the remaining 50% allocated as educational in nature and free of taxes." In an interview Scott explains, "Any tax breaks have to come through the state legislature." Educational facilities are considered exempt.
When asked if he would seek assistance from the legislature for a tax break, Marlow wrote in an e-mail response, "One would assume that the curriculum intended would fully qualify for educational purposes with little imagination. We proposed a maximum of 50% tax reduction for educational purposes, with 75% for the first five years to allow development of the facility and curriculum. Considering that the property has been completely tax free in its entirety since origin, it seems a modest request, particularly when viewed with the lack of requests for financing, tax relief, state or national support, etc."
Marlow continued, "If the legislature believes that request unfairly penalizes any sector, we would consider that position and do our best to accommodate community needs. On the last point, I believe the proposals outlined by us are generous, as do 100% of the numerous communications we have received in every form thus far. Should any proposals inadvertently run afoul of Maine or national law or equity, I am receptive to dialogue."
The reasons for the purchase of the two additional parcels of land on Broad Cove were discussed by Marlow at a workshop held with the council in October. The company needs to keep its proprietary technology secure as well as ensure the public's safety. The dirt road that accesses Shackford Head State Park would be rerouted by Marlow to become a "scenic and logical walking path" from a new parking lot that would be located on a piece of city property that abuts the airport and Deep Cove Road. Scott had explained at the October workshop that moving the access road closer to the shore would be difficult because of zoning and permitting issues. When asked if there would be another way to secure his facility should he not receive title to the two Broad Cove properties, Marlow responded by e-mail, "No. Nor do I know of any responsible companies that would risk the liability or carelessly expose the public to the danger of unfettered access to areas where heavy equipment and potential for injury might exist. It is doubtful that proper coverage could be obtained via underwriters were they aware of such practices."
The proposal includes a paragraph detailing Marlow's responsibility "to fund a replacement launching ramp," with $50,000 being placed into a local trust. Currently the public uses the former seaplane ramp for boat launching as well as access for repairs and storage at the nearby Moose Island Marine facility. City Manager Jon Southern notes that it would cost the city about $400,000 to build a replacement ramp, but he could not estimate what it might cost if Marlow built it. He suggests a possible site for such a replacement ramp is the city‑owned property at the south end of the island where the derelict Consea factory is located and undergoing a brownfields assessment.
When asked how much he anticipated such a replacement ramp might cost him, Marlow responded by e-mail, "Well under the amount allocated in the proposal, allowing further improvements to the site as compared to current. That intent to assist should be evident in the amount allocated for the launching ramp, just as the amount allocated for construction of first-class restroom facilities is. The intent is to enhance both areas. Those and the scenic path along the shore with citywide improvements to enhance the beauty nature has given Eastport are examples of our offer and commitment as a good corporate neighbor."
The proposal describes the development of a commercial vessel and yacht repair/refit center. "We intend to develop an advanced and capable refit facility for a variety of craft containing the latest tools and handling/hauling equipment. The intention is to develop a professional commercial vessels service operation suitable to the business demands at reduced rates to assist the working waterfront community."
Because Eastport is out of the range of "normal refit centers" the proposal notes the importance of substantially reduced rates to attract a customer base to the area. The refit center would have a marine trades educational component incorporated into its structure. Whether that educational component would be delivered through an entity such as Husson University's Boat School, an apprenticeship or internship system has not been determined. But Marlow envisions students learning hands‑on skills while receiving compensation for their work.
Marlow told the audience at the council meeting that he would invest about $1 million to $1.5 million in the facility and that some jobs would be created by expanding the school, opening the boat yard and building a team of artist craftsmen. He mentioned the likelihood of bringing some of his craftsmen over from China to teach some specific skills at the Eastport facility. In an e-mail response, Marlow wrote that the initial investment would be used for "tools, machinery, materials, construction."
In addition to the yacht repair/refit business and curriculum facility, Marlow's proposal includes a number of other items meant to enhance the community: for the Deep Cove site a museum‑like showroom, which would house Eastport and Maine area artifacts, and also a composites laboratory, but the lab activity might be reduced if an overlapping composites facility were built by another entity; public restrooms in the downtown, funded by $50,000; annual scholarship funding for two Maine residents "to attend classes at the school"; landscaping and enhancements of the city's downtown walkway, funded by $10,000, with the addition of the construction of 12 flower boxes and $2,000 annually for five years to refurbish the flower boxes and the downtown waterfront area.
Expanding the curriculum
The proposal says that a two‑year school curriculum, as is offered by The Boat School, "does not adequately address the needs of a student to become a fully fledged maritime or related industry professional." Marlow's proposal suggests increasing the educational period to four years with the third year devoted to using classroom learning in the boatyard for "actual yard repair and refit applications at a reasonable wage to encourage continued education." In the fourth year "it is our intention to meld a portion of yacht production into the overall campus scene."
When asked when he might begin to develop yacht building on the campus, Marlow wrote by e-mail, "As students complete the primary classroom educational curriculum, the following period will be to experience firsthand the workings of a shipyard repair facility including direct observation and repair of the result of poor design and construction versus proper design and construction when the product reaches consumer hands and is used in what can be a hostile environment. Following that further advance in skills the intent is to build boats as the market will support."
At the council meeting, Boat School Administrator Caryn Vinson told the audience that the school has seen 100% placement of its graduates at marine trade jobs that pay $18 to $20 per hour either immediately or after a brief period at a lower wage. The question is whether students will want to continue their education another two years at lower wages while learning at Marlow's boatyard when they could be learning at other boatyards as full employees.
Adam Fisher, press liaison with the Maine Department of Labor, is intrigued by the possibilities of the proposal. "What could happen in Eastport is exciting -- the development of skills that are marketable." While apprenticeships, internships and case‑by‑case training wage agreements have different requirements, all are structures that Fisher sees as compatible with both Marlow's needs and those of an educational institution such as Husson. Fisher notes that one of the biggest complaints his department sees from employers is the lack of good opportunities for employees to develop wide experience before coming into the workforce. "Economic development in Maine all comes down to availability of a workforce."
Thom Johnston, president of Husson affiliate New England School of Communication and The Boat School, says that a meeting with Marlow held at Husson University on Thursday, December 16, went well. "I think everyone came away with a spirit of cooperation." While it is still too early in the process to discuss the details of an educational partnership, Johnston says, "Can it work? The answer is yes... We're convinced that there are a number of options that can be created out of collaboration." As for the safety concerns that Marlow has outlined for his facility that would restrict access, Johnston understands these concerns. Securing the premises to protect business processes and the public's safety is standard practice. "It's like a paper mill," he says. "They just don't let you wander around." Regarding student activity and security measures, he adds, "Within a school, I can see that it would work just fine."

Looking to the future
In order to move the discussions forward, the city council unanimously passed a resolution stating that the properties of interest to Marlow were no longer required for city purposes. The resolution will be a part of the city's request for legislative approval to sell the property.
Johnston notes that the legislation is just one piece of a lengthy discussion and planning process. "At some point someone's going to come up with a time table. We're looking forward to having some good conversations. David [Marlow] is a unique and interesting possibility." However, he says that the recruiting of Boat School students needs to remain a priority. "The problem we face is people think The Boat School is not open for business. That's not the case. We are open."
Council President Robert Peacock voiced his concern at the December 15 meeting that keeping the school running is important but that the city's subsidy of the property is unsustainable and therefore presents a real risk. "If we don't do something, I'm afraid we're going to lose the school."
Initially it was reported that the center was costing the city annually about $50,000, but Southern says that this amount was for the "hole" created when the city offset all the center's expenses with revenue from other city properties. He says that the city's 2009 cost to run the Marine Technology Center was between $150,000 and $175,000. While a complete breakdown was not available, a partial listing included $40,000 for electricity, the cost of 24,000 gallons of heating fuel, $7,000 for insurance, $6,800 for water, $11,000 for phone, $4,000 for Internet and $15,000 for supplies.
Towards the end of the council meeting Councillor John Miller recommended that the public research the high‑end yacht maker on the Internet to further their understanding of what Marlow could bring to the area. The Norsemen Shipyards website is available for viewing at <www.norsemenshipyard.com>, and Marlow Yachts can be viewed at <www.marlowyachts.com>.