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Home Breaking News

Bar Harbor may redirect $4.35M after abandoning solar project

by DigestWire member
August 8, 2024
in Breaking News, World
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BAR HARBOR — It will be up to voters in November to determine if the $4.35 million they had approved to create the now-defunct Higgins Pit solar array project, should now be used for capital improvements to town-owned properties that will be used to reduce carbon emissions, promote energy efficiency and lower operating expenses.

The Town Council decided in May to not go forward with the Higgins Pit solar array project and instead directed Town Manager James Smith to find other projects and ways of achieving the goals of that project.

The project was meant to offset approximately 25 percent of the town’s carbon output by building a solar array at Higgins Pit, a town-owned property.

The project was approved by voters in 2022, but since then, costs had risen beyond initial projections, prompting concerns for some. Because of the site of the town-owned property, for the project to go forward, wetland remediation would have to be done, a road would have to be built, and the project itself had been downsized before it was canceled.

Proponents had said that even with those changes, the project was worth it for the carbon offsets and climate-positive impacts. The town has already made one payment on the $4.35m bond, which was sold in August 2023.

The funds must be spent in the next 12 months.

“We can’t just give it back,” Councilor Matthew Hochman said of the funds at the Town Council’s Aug. 6 meeting.

Resident Heather Sorokin asked what would happen if the town voted not to reauthorize the money. It would end up with arbitrage issues, Smith said. Town Attorney Stephen Wagner said the town would have to go back to bond council and then it would be losing money.

Instead, the town hopes voters will approve using the money for improvements to town properties in a way that is meant to reduce carbon emissions and promote energy efficiency and lower operating expenses.

“We’re essentially looking to meet our climate goal objectives and produce cost savings for various town operations with those funds,” Smith said. “It makes more sense financially to use the money to advance the goals that it was originally borrowed for.”

The Town Council unanimously placed the amendment article on the Nov. 5 town meeting warrant. Vice Chair Gary Friedmann was not at the Tuesday meeting.

Sorokin suggested showing the voters ahead of time how the money would be used.

The process for spending the money might be authorized via the council or be programmed into the budget, but the expenditures have to meet the stated purpose of the reauthorization, Smith said. During discussion, it was said that the timing does not work well with the school’s construction bond, which needs to be sold at the end of September.

A study of all town facilities has been issued and the results are expected back this week, Smith said: “Every item found in that, in every facility, will be related to an energy efficiency upgrade of each facility.”

That will show a clear direction for each facility, he said, and ways to reduce costs and increase efficiency.

“That’s probably a very good path for us to continue on,” Smith said.

Councilor Kyle Shank asked that the Council be cognizant of finding ways to use the money that will positively and clearly impact citizens.

This story was originally published by The Bar Harbor Story. To receive regular coverage from the Bar Harbor Story, sign up for a free subscription here.

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