Ted Hoskins, our moderator, turns to Robert and Wayne Davis, the operators of Davis Wharf in Tremont. Davis Wharf, Ted says, has been fishing for over 60 years, and has caught every kind of fish there is.
Also speaking will be Jim Connors of the Maine Coastal Program, who has been involved in coastal areas for a long time, and Jeff Kendall from Maine Revenue Services.
Wayne Davis of Davis Wharf
Wayne Davis's grandfather acquired their fishing property decades ago, and it has been handed down the line to them. In 2007, the Davis Wharf had a tough year, and Wayne started looking at the Working Waterfront Program. He was skeptical at first, but the tough fishing times continued. He called the Program back and restarted discussions. He said that Working Waterfront Access Program employees came and looked at the property, and were very impressed and indicated that the property would work. That winter, they began to write a grant.
This summer, Wayne says, has been a bit better for lobster. He is worried, though, about not having a market for his lobsters. The price of lobster is low, and the price of operation is high. He is proud that he has joined the program, and is optimistic that with promotion, he will succeed. He encourages other fishermen to participate.
Ted asks him what he is seeking at the Davis Wharf.
Wayne says they inherited a large debt. He tried to renovate his land with new granite and a new building, and all this put them further in debt. His youngest brother had to sell his interest, which made things even worse. He handles it, though. He and his brother Robert are proud that they have been able to continue for three years, but he says the low price of lobster continues to make it difficult. He was born on this land. His grandfather fished hake and other groundfish for years, and he himself has fished down to New York City.
All that's left, he says, is lobster, and the industry is in trouble. There are too many traps. Lobstermen, he says, need to work together to reduce the number of traps. Without steps, wharfs will continue to go out of business and be sold to summer residents. Wayne runs through a list of wharves he says are in danger of being sold. He is uncertain about the future of the industry, especially in the current economy.
Robert has nothing to add, saying his brother summed it up. Ted knows how hard it is to be a successful fisherman, especially in such a tough, physical business.
An audience member asks about tax payments under the program. Wayne isn't sure yet what the exact tax break he will get, as he will be the first fisherman on MDI under the program.
Q: What would it take to get more property owners into your position?
A: A better economy. Robert says since the newspaper articles and publicity about his situation he has not, unfortunately, been approached by other fishermen asking about how to get into the program. Wayne says the program works best only if the people want to stay in their land forever and work. Most people, he says, may not want to make this dedication. Wayne and Robert depart because they have to arise at 4am to fish tomorrow morning. Since the economy is so bad, they say, they leave with concerns that tomorrow may be their last day on the water.
Jim Connors - Senior Planner, Maine Coastal Program
Jim Connors begins to paint the broader picture of how the Davis Wharf project fits into the WW Program. The Davis project is one of 9 currently in the program. The program, he says, exists thanks to Maine voters, who approved funding for this pilot program. $5 million has been authorized. The program is run through the Dept. of Marine Resources, who has hired experts to work directly with applicants to come into the program.
What is the program about? Folks have come to the realization that working fisherman are the most vulnerable to being forced off coastal land, mostly because of rising land values. A group of people came together to form a coastal coalition to try to protect fishermen and keep them on their coastal land. This coalition has put two things on the ballot: 1) a constitutional change to create the working waterfront current use program, and 2) establish the working waterfront pilot program.
Jim doesn't think that "grant" is the correct term here. The landowner in the program is selling future development rights on their property, and keeping them in perpetuity for commercial use access only. Fishermen understand the value of their coastal program and want to keep them available, and that's what the program is about.
The program is open for applications, and anyone who has a property or is interested can contact a program member to begin the process. Potential applicants are scored and, then, come in front of a board to begin getting funding out the door. Jim is proud to be the last step in the process: the check-writer.
Ted asks who to contact specifically. Jim says that on the Coastal Enterprises handout is contact information that will help get started.
Q: Have there been other projects that have not been funded?
Jim: Every proposed project is inquired into.
Q: There is a lot of red tape.
Jim: There is, unfortunately. There are a lot of things to be filled out.
Comment: The red-tape is worth it. There is a lot of paperwork, but that anything good is worth working for. Even though it's a lot of work, it's definitely worth it.
Ted and Jim say that the hard work is to protect the taxpayers and the people in the program to ensure that everything is safe and everyone is protected. The time you put in is to ensure that all the "t"s are crossed and "i"s dotted. There are people available to help.
Q: What about protections for property owners in the program?
Jim says that the State purchases a title to the land, and so there is a relationship between the State and the landowner to ensure that the covenant is not being violated and the rights abused.
Q: A member describes a specific incident on her land where clam-diggers vandalize her property. Who, she asks, is in charge of stopping this? How does that work?
Jim says the underlying landowner is in charge of their property, and whoever hold the title to the lands is also in charge. This program may not be a solution to vandalism and crime. This is not a public access easement, it pertains to development rights. Individual agreements with clam-diggers and others who want access to waterfront are not under the control of this program. Local police and other officials are the ones to turn to for this problem.
The audience member expresses an interest in addressing access issues for clam-diggers and others on the working waterfront. Ted thinks other clammers will straighten out those bad eggs! Everyone agrees wholeheartedly.
Q: What is the 'string attached' at the end of the program?
There is an annual visit by DMR to the property to ensure that the landowner is upholding their end of the bargain. These covenants are an investment in the property, and if things fall apart there may have to be some refunding. He doesn't think many properties will have to take this road.
Jeff Kendall - Maine Revenue Services
Jeff Kendall of the Maine Revenue Services is up to speak about the Maine Working Waterfront Tax Law program. It's a reduction in taxes for those enrolled in the program, and unlike the Working Waterfront Program, it works at the local level.
Jeff says that 72 percent of voters are in favor of this program, which is designed to give tax breaks to those in support of, or who provide access for, commercial fishing. It's a much shorter application process than the Working Waterfront Access Program. Submit the form and pass it in by April 1 of the year if you'd like to be considered. If the information provided passes muster, you're accepted.
Once you're in, the level of tax reduction depends on the specifics of the property. There is a sliding scale provided in the program, which most towns use. If 50 percent or more of the property is used for commercial fishing, there's a 10 percent tax reduction. If 90 percent or more is used for commercial fishing it's a 20 percent reduction. In addition, if the land is kept in perpetuity for commercial fishing, there's an additional 30 percent reduction. There are also reductions for comparative value of the waterfront property versus inland properties.
Jeff says that town assessors are not opposed to these programs. There are 40 properties currently involved, covering about 41 acres. The towns can tell potential applicants who is already involved, to talk with them about their experiences. Jeff says that there are misconceptions about the requirements of this program, so talking to those already involved is helpful. It's not for someone who is trying to avoid taxes, it's for those who want to stay on their property and keep the waterfront working.
Although it hasn't been examined much, Jeff says that landowners can be involved in both the Working Waterfront Access Program and the Working Waterfront Tax program.
Next, Jeff moves to the "big sticky point" on this. There's a penalty attached for violation of the agreement. The town will want to get paid back, and the town will keep that money. Any penalties will go to reducing future town taxes.
The downside, Jeff says, is that these penalties can be large. This isn't designed to be a tax dodge, it's meant to keep land undeveloped and working. Those who get the benefits of the tax breaks can not turn around and decide to develop the land without penalty. You need to be in it for the long haul.
Q: Does this remain with a change of ownership?
Jeff says that yes, the new owner will have 1 year to come up with a new map and application or else the property will be pulled out of the program and be penalized. Pieces of the property may be converted to development, with smaller penalties, without being pulled from the program. The purpose is to keep properties from forced conversion to other uses, and so town assessors are encouraged to work with landowners, but make sure you talk to an assessor before land is transferred or developed in any way.
Q: From the town's perspective, does the State reimburse the town for its tax losses?
No. It's a citizen initiative. If it were legislatively enacted, the state would reimburse the town for its tax losses. Since taxpayers voted for it, the State does not pay the towns.
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