The Dover-Foxcroft Select Board on Monday evening approved wording for two articles on the future of the Mayo Mill Dam and associated costs to be voted on at the town’s annual meeting.
The town meeting, scheduled for 9 a.m. on Saturday, April 26, is the first in a two-step process for all of the town’s articles. Articles approved that day will then go to a referendum vote on Tuesday, June 10, for final approval.
The first of these articles, if passed, would authorize the Select Board to raise and appropriate $250,000 and have the authority to borrow up to $250,000 (for a total not to exceed $500,000) to begin consulting work to surrender the dam’s Federal Energy Regulatory Commission license.
The second dam article would authorize the Select Board to borrow up to $9 million for the retention and repair of the dam. The amount to be borrowed is based on the total estimated project cost but excludes financing costs and potential funding offsets.
Dover-Foxcroft voters rejected a referendum article last June to remove the Mayo Mill Dam, indicating they were in favor of using tax money to fund studies, permits and repair costs for the structure. No financial figures were included in the 2024 ballot question.
A yes vote on the second dam-related article authorizes the town to pursue said borrowing for retention and repair. A no vote authorizes the Dover-Foxcroft Select Board to remove the Mayo Mill Dam without using local taxpayer funding, including by entering into an agreement with outside parties for the removal of the dam and to develop a plan for a restored riverfront to be negotiated and approved by the Select Board acting in the best interests of the town.
If approved, the projected annual cost to the town for the dam’s repair is $664,000, which will result in an expected rise in property taxes (based on 2025 assessments) of approximately 9 percent, or 1.5 mil, for property owners for a period of 25 years.
“It’s a guessing game, it could be two years to get proposals out,” Select Vice Chair and Dam Committee Chair Steve Grammont said regarding the cost for the article. “We erred on the side of being a bit higher,” he said, not wanting the public to think it had been undersold on dam repair costs.
Financing the $9 million over 25 years at 5 percent interest would put the project cost at $14,107,600, with $9 million in principal and $5,107,600 in interest.
“We felt that we needed to ask people up front for the spending authority,” Grammont said about the 10th article. Otherwise it could be problematic to get contractors on board if funding had to be approved by citizens piece meal, he said.
It’s unclear when the cost would be reflected in taxes if the article passes, Grammont said.
The cost to surrender the license for the first dam-related article is yet to be determined, but expenses for consults, legal work, engineering studies and more could total between $300,000 and $500,000.
The board had opted to abandon plans to pursue hydropower at the Mayo Mill Dam due in large part to a lack of financial sustainability. Renewal could have cost $1.2 million.
A consultant will need to be hired for the license surrender no matter what else happens with the dam in the future, Grammont said.
“Article 9, we need this money to get started no matter what happens with the other,” Selectperson Emery Cox said.
Letters will be sent to voters and property owners to inform them of the two questions.
The dam committee, which will meet next on Tuesday, April 29, has been discussing all scenarios should articles 9 and 10 both be turned down, or one approved and not the other.
“We look forward to seeing as many folks as possible,” Interim Town Manager Alsina Brenenstuhl said about the town meeting, as attendees will be able to ask questions when the articles come up for a discussion and vote.
Other opportunities to learn more will be held prior to June 10, Select Chair Tom Lizotte said. Public hearings on the June ballot are held in May, either as part of a regular Select Board meeting or on another night.
“As a town government we can offer the opportunity, people have to take advantage of it,” Lizotte said.
