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Adams, Kurt

From: Smith, Jim

Sent: Friday, February 06, 2004 3:00 PM
To: Adams, Kurt
Subject: FW: Sears Island

Importance: High

Please deliver this to Comm. Cole who will be there momentarily. Thanks. Jim Smith

-----Original Message-----

From: Caswell, Terry
Sent: Friday, February 06, 2004 2:48 PM
To: Cole, David A
Cc: Shea, Gregory; Smith, Jim; McNeal, Greg
Subject: Sears Island

Importance: High

David,

The Sears Island Cargo Project (Part of the Department's 3 Port Strategy) dates back to 1977.

During the time from 1977 until the mid 1990s the Department invested in excess of $22.0 Million in infrastructure and project efforts on behalf of the Sears Island Port Project. The expenditures were a combination of General Fund Bonds, FHWA funds, and Highway Funds. In 1997 the Department purchased the remainder of the island for an additional $4.0 Million using a $2.0 Million General Fund appropriation and $2.0 Million of FHWA enhancement funding. In 2001 the Department and Federal Highway Administration agreed to remove the enhancement funding from the purchase of the island. By default the Highway Fund absorbed the $2.0 Million that was repaid to FHWA.

After the acquisition of the entire island, it was determined that the most appropriation financial entity to own the island and the remainder of the other assets of the project, was the State's Ports and Marine Enterprise Fund. (Justification for this decision may have been pursuant to Title 23, Part 6, Chapter 412, Subchapter 2, subsection 4425 Acquisition of Land) The Ports and Marine Fund has sold the steel that was stockpiled for the original pier. The proceeds from the sale of steel were dedicated to the Ports and Marine Fund and the legislature granted budget authority for MaineDOT to spend these funds on designated projects.

Currently Sears Island is carried as an asset of the Ports and Marine Fund at a value of $4.25 Million.

If a sale of part or all of the assets of the Maine Port Authority is being considered, it appears it would fall under the provision of Title 23, Part 6, Chapter 412, Subchapter 2, subsection 4424 Property of the State.

The purpose of the Maine Port Authority can be found in Title 23, Part 6, Chapter 412, Subchapter 2, subsection 4420. This states that ..."the general purpose of acquiring, financing, construction and operating any kind of port terminal facility..."

It appears that within the statues establishing the Maine Port Authority, we have the authorization to buy and sell land as is in the best interest of the State.

I will be glad to discuss this further with you at your convenience.

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