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Home Breaking News

Hampden asks Penobscot County for tax break if it builds new jail in town

by DigestWire member
January 25, 2026
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Hampden asks Penobscot County for tax break if it builds new jail in town
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The Hampden Town Council approved a proposed agreement to offset a new jail’s impact on taxpayers if Penobscot County builds it in the town.

The agreement, essentially a payment in lieu of taxes, asks the county to fund two additional public safety positions to prepare for an influx of calls from the proposed jail, along with covering infrastructure costs and reducing the town’s tax burden.

Penobscot County has paid $100,000 to hold land in an industrial park in Hampden as a possible location for a new jail. Voters would have to approve moving the jail out of Bangor, but Hampden councilors unanimously approved a resolution in support of building a new jail during their meeting on Tuesday.

A new jail has been talked about for more than a decade, with previous plans including an eight-story building in Bangor. Municipal officials across Greater Bangor have expressed their support for a new jail because of the financial burden the jail has put on the county budget.

“There’s no doubt in my mind that that jail needs to be replaced yesterday. It’s almost inexcusable that we’ve collectively allowed this to continue this long as there are battles about who funds what from the state, county and local levels,” Hampden Councilor Dennis Marble said in support of a new facility.

It isn’t determined if the jail will be in Hampden yet, but Town Manager Paula Scott said the town’s “current knowledge tells us” that Hampden is the chosen site for a new facility.

The town wants a “reciprocal agreement” with the county that would acknowledge the changes to the town’s public safety and tax base a new jail would bring, Council Chair Matt LaChance said on Tuesday.

In the proposal, Hampden is asking for the county to annually fund one additional police officer and one firefighter, as well as any equipment needed, to be able to respond to increased calls the town would see if the county jail was moved to Hampden.

Based on Bangor’s calls, Hampden would see 50 additional emergency medical calls to the jail and between 60 and 100 additional police calls.

The council’s proposal also stipulates the county would have to pay for any road construction and maintenance created by the jail and would have to pay a share of the plowing costs.

If the county agrees to the proposal, Hampden would also receive 50% forgiveness for debt service created by the jail bond, which may be roughly $80 million based on the most recent estimates. The forgiveness would be given through an offset to Hampden’s tax assessment.

Hampden is the only community to send an agreement to the county, County Administrator Blair Tinkham said. County officials hadn’t received the agreement as of Friday morning but were asking for a copy and will review it, Tinkham said.

The resolution to support the construction of a new jail and the agreement were sent to the county together to show support for a new facility but also ask for an agreement to look at the effect on Hampden taxpayers, Scott said.

“This is a first step. Because anything that comes out of this has to be negotiated. This is our initial step toward the county and hoping that they will be willing to come back [with an offer],” Scott said. “Maybe they won’t agree with any of it or all of it, or maybe they will, but it will give them a starting point.”

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