The October 25 meeting between the Boothbay Harbor Shipyard, the Boothbay Region Water District, the Town of Boothbay Harbor, Dirigo Engineering and the offices of Lincoln County Economic Development (LCED) officially set the wheel in motion.

A Community Development Block Grant (CDBG) is being sought to replace the current four-inch water main (installed between 1892 and 1894) with 12-inch pipe on Sea Street for expansion of the Boothbay Harbor Shipyard.

The CDBG program is part of the federal Department of Housing and Urban Development (HUD), and is administered locally by the Maine Department of Economic and Community Development (DECD).

The district will have to install 100 feet of 12" main to meet the needs of the shipyard (increased fire protection and a sprinkler system) and code requirements.

The replacement of the water main on Sea and Commercial streets has been on the Water District's capital improvement list for several years and work for the multi-million dollar project was five to 10 years out.

But, the shipyard's need, today, has moved the Sea Street facet of the water main replacement project up on the list.

The installation area would encompass the corner of Western Avenue to Sea Street, replacing all pipe on Sea Street and replace parts of Commercial Street that are adjacent to Sea.

The joint meeting was attended by Boothbay Harbor Town Manager Tom Woodin, Julia Latter of the town office, Joe Jackimovicz and Doane Hesleton of Boothbay Harbor Shipyard, Water District Manager Jon Ziegra, Larry Morin and Jim Lord of Dirigo Engineering, Amy Winston (hired by Ziegra to write the grant) and Margaret Laughton Lincoln County Economic Development, and Mike Baran of the Office of Community Development (a grant technical assistance program manager with HUD), Chris Higgins of the Boothbay Region Sewer District and two water district directors.

The first phase of the grant application process to acquire funding for the Sea Street project, through a Community Development Block Grant, is January 4.

The shipyard meets the state's criteria for Pine Tree Development Zones (PTDZ). A PTDZ encourages the creation of quality business activity in economically distressed areas of Maine.

To meet the criterion to qualify as PTDZ a business must be part of a particular sector, in this case manufacturing, the business must be expanding its employee baseline with qualified workers, and, those workers must be full-time employees.

Additionally, 51 percent of these new positions must be for low to moderate-income individuals as defined by HUD. Individuals qualify based on earnings within those limits over the last 12 months.

For each new employee hired at the shipyard, $30,000 of grant money is available. Currently the yard intends to hire six individuals for a total grant of $180,000.

Each job has to meet the county minimum salary per hour. Winston believed this to be around $14.40. Baran said the information was readily available on the Davis Bacon Web site.

"The wages are based on 80 percent of the median household income," said Winston.

For example, in 2005, the median wage in Boothbay Harbor was $32,600, 80 percent is $26,080. Baran added that health benefits, vacation time, etc. count toward total income.

"In the actual applications, the better the jobs, the more points you earn in the review process," said Baran.

These new hires would also be completing a one-page questionnaire relating to the shipyard position.

Once jobs are created, LCED monitors the positions for up to two years. Winston advised that if the number of jobs the shipyard specifies it plans to create on the job application are not created, or they fall short of the number stated on the application, the applicant community (town of Boothbay Harbor) would be responsible for the "immediate repayment of all the CDBG funds expended on the project."

Winston said, "As long as the jobs are created, the town is off the hook," said Winston. "Of course the spirit of the grant is to have full-time, year-round, living wage jobs that are permanent. But, sometimes jobs that are created disappear, there are layoffs - it happens."

Winston explained a claw back provision that would remove the liability from the town (the applicant on paper) and place it with the shipyard in the event the yard does not fulfill the job creation requirement.

"But, I think this is less of an issue here. This is a small town and the company is well-established," Winston said, adding, "I don't think we would be here today if the shipyard was not certain of their needs."

Woodin said the provision was something the town would definitely want to have in place at the time of application.

Jackimovicz asked how soon they could hire employees that would count toward the grant requirement. Winston said she would check - noting that the shipyard's needs might necessitate action before the first grant process due date of January 4. (Since the meeting was held, Winston reported that the January 4 due date is the earliest date pre-applications and letters of intent will be accepted.)

Baran said that when the pre-application/letter of intent is filed, any employees hired after would count towards the jobs the yard expects to hire.

The question then becomes how soon can the pre-application and letter of intent be filed. Neither Baran or Winston was certain and both said they would find out.

Woodin inquired about the possibility of tying in sidewalk work with the project.

Winston suggested Woodin look into Rural Development for funding.

Added Baran, "We do projects all of the time with CDBGs that have other monies folded in to it. Whatever is needed for the infrastructure, as it relates to the expansion can be included in the grant."

Baran reminded the group that the work wage rates for all of the laborers performing the infrastructure work come under Davis Bacon guidelines. He added that these rates were probably already in line with what contractors were already paying their employees.

Another important point here is that if the sidewalks and the sewer facets are added to the project, the number of jobs to be created rises. At this time the shipyard is the only company at the table - who would be creating jobs to fulfill this requirement of the CDBG?

Ziegra said that the water district's contribution toward the 25 percent was for the work required for the water main and road reconstruction - not for sidewalks or other add-ons to be completed at the same time.

The sewer line also becomes part of the project because the 33-foot outfall pipe that serves the town and the gravity line adjacent to it that serves the southwest part of the peninsula cross the shipyard's garage annex requiring both to be re-routed.

Said Higgins, "I would hope this work would be under the grant. We will have to relocate the pipe and line so they (the shipyard) can build without impact on our underground facilities."

Higgins said the monies for repairs would come from current district contingencies and that the repairs would be a line item in the project.

"That way the district could realize savings on an economy of scale," said Higgins.

Higgins and Ziegra will produce total cost estimates for their portion of the infrastructure work related to the project. Further, they will determine, once a total project cost is established how the districts will split the 25 percent match.

The maximum award amount through the CDBG is $400,000. The Maine CDBG Program requires applicants to meet one of the CDBG objectives and: be part of a long-range community strategy; improve deteriorated residential and business districts and local economic conditions; provide the conditions and incentives for further public and private investments; foster partnerships between groups of municipalities, state and federal enteritis, multi-jurisdictional organizations, and the private sector to address common community and economic development problems; and minimize development sprawl consistent with the State of Maine Growth Management Act and support the revitalization of downtown areas.

The application process begins with a letter of intent (which includes the total project cost, how many jobs will be created, etc.) and pre-application, from the applicant, the town of Boothbay Harbor on behalf of the Boothbay Region Water District that is due by January 4, 2008.

As part of the process, three public hearings will be held, the first in-between, the pre-application and application which is due by March 7.

At the first hearing, which could be part of a selectmen's meeting, a specific public announcement and information about the project is presented.

Baran said that monies for approved projects would be available in June. This time frame works well for the project's inclusion as a line item at the May Town Meeting to accept the funds and authorize use.

The three phases of the selection process begin with the letter of intent and verification of CDBG's national objectives (all applicants must meet at least one: benefit to low and moderate income persons; prevention and elimination of slum/blight conditions; meeting community needs having a particular urgency) and the point-based review process.

Ziegra said work would begin in the fall of 2008 - as soon as the town would permit - with a completion date in winter 2009.

An open hearing, not one of the grant hearings, will be held at some future date with residents of Sea Street and commercial property owners to discuss the impact of the Sea Street project on them.