Perry voters to consider tribe's aviation plans

The proposed construction of an airplane parts manufacturing and maintenance facility at Pleasant Point was the subject of an informational meeting held May 24 at the Perry Elementary School. The Passamaquoddy Tribe at Pleasant Point has requested the approval of Perry voters for the Passamaquoddy Sipayik Aviation & Aerospace LLC facility to be located on land annexed by the tribe from the Town of Perry. Perry voters will consider the question at a special town meeting to be held on Tuesday, June 7.

At the meeting, attended by approximately 30 people, John Shaffer, chief executive officer of Aviation and Aerospace Management Inc. of Orlando, Fla., described the current trend of airlines to outsource maintenance and repair of aircraft, a trend he expects will double in the next 20 years. Shaffer outlined plans to take advantage of the outsourcing trend by constructing a facility at Pleasant Point. Tribal status offers many advantages, including minority contracting, corporate-tax-exemption status, non-union workers and preferential government contract status. Shaffer says he looks at the Sipayik facility to bring back many of the jobs that have been outsourced overseas. "It is like outsourcing within the United States," commented Shaffer.

He said the company will adhere to good employee practices and provide benefits whether there is a union or not. Union employees involved in such work earn $50 to $60 an hour. Shaffer says the pay at the Sipayik facility will range from $18 to $24 an hour, plus employees will acquire valuable skills. The expensive wages paid union employees is one of the reasons outsourcing has been so popular.

Tribal ownership
The tribe will maintain 51% of the ownership of the project in order to qualify for advantages of minority contracting and tax-exempt status. The remaining 49% ownership will be by investors or an investor. Shaffer has been pursuing investors, but he says until a contract is signed and a specific site in place, investors will not make a commitment.

The tribe is asking Perry to approve the use of 12 acres of annexed land located across from the Lobster Crate restaurant on Route 190. The 200,000-square-foot facility with 24 production shops will be involved in what Shaffer described as maintenance and manufacturing of parts taken off aircraft. There will be no construction of engines or wing frames.

Shaffer will serve as the chief executive officer for the Sipayik facility until trained personnel are ready to take over. Experienced aviation maintenance personnel will train employees. According to Shaffer, as these employees gain skills and obtain a license to do aircraft work, they will be able to advance to highly-skilled positions. The Federal Aviation Administration (FAA) requires two years of background before issuing the licenses. U.S. and foreign repair services that work on U.S. planes and parts must by authorized by the FAA and adhere to certain safety standards.

"We have to train people to be disciplined," stated Shaffer. He stressed the need for reliability and said he believes well-trained Americans can compete with employees worldwide. "We will be providing employees with a career that will last a lifetime."

Environmental and impact questions
Questions raised during the meeting centered around environmental practices, impact on the area, continuity of the business, transportation costs and number of employees.
Perry resident Ron Rosenfeld raised the question of the disposal of cleaning solutions and hydraulic oils. Shaffer said everything is self-contained within each shop. Many of the products are re-used. When disposal is necessary, the material is put in drums that are taken away by vendors licensed by the Occupational Safety and Health Administration. Attorney John Foster asked if the facility would be subject to Environmental Protection Agency laws. Cliv Dore, project coordinator, said all environmental and federal laws would be applicable to the project.

The building will use solar power to the fullest extent possible, and Dore anticipates some of the energy will be sold back to Bangor Hydro Electric. Transportation of parts will be by United Parcel Service or Federal Express, a common way of shipping used by the airlines.

Asked about the impact of the facility on the area, Shaffer said, there would be no impact "except putting several million dollars into the neighboring communities."
Shaffer expects construction of the building could commence this winter. Approximately 100 workers would be employed during the construction period. He estimates 300 people will be employed once construction is completed and the facility is operational.

A Perry resident noted that the tribe does not have a history of continuing businesses, citing several businesses that have had a short life. Shaffer replied, "We will lay the foundation for growth. It is the way you run the business."

On display at the meeting was a map showing the area of the annexed land that would be used. The exact location of the plant, within the desired acreage, was not shown on the map. Brian Johnson, president of Alliance Construction of Scarborough, said the configuration of the building was still to be determined. John Foster said Perry voters need to have a "real map" with all details worked out. Johnson said it could be done within a couple of days.

Memorandum outlines agreement
Attached to article 5 on the warrant to be considered at the June 7 town meeting will be the following Memorandum of Understanding: "Passamaquoddy Sipayik Aviation & Aerospace LLC is owned by the Passamaquoddy Tribe of Pleasant Point, who holds no less than 51%. Our mission is to establish and operate a company utilizing our 12,000-year-old heritage and tradition of renowned skills in workmanship and applying those skills to the technologically-advanced, aviation and aerospace industry. This will provide to our community, as well as to all of our individual members, financial independence, self-reliance, pride and the opportunity to, with confidence and resolve, proudly face the future with strength and self-determination.

"The tribe will attempt to hire and train workers from the local area for the aviation business.

"The tribe agrees to involve EPA, the Army Corp of Engineers, and all other federal agencies in the design of the project to assure proper practices for wetland alteration, and wastewater and chemical discharges. All federal environmental regulations and laws are applicable to this project.

"A site map dated May 25 describing the 12-acre parcel of land that will be utilized for this aviation project is attached hereto, and it is only that portion of the annexed land that will be affected by the town vote.

"This proposal is limited to the above described use by Passamaquoddy Sipayik Aviation & Aerospace LLC manufacturing facility. Any other use of the ten-acre parcel will require another vote by the voters of the Town of Perry.

"The terms of this agreement, if approved by the voters of the Town of Perry, shall be binding on the Passamaquoddy Tribe of Pleasant Point and any company owning or operating the business described above and their successors and assigns."