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Wednesday, August 6, 2014

North East Mobile Health Services Enters Negotiations With Camden For Tannery Parcel

Camden, Maine - The Camden Select Board voted unanimously at its August 5 meeting to enter into negotiations with North East Mobile Health Services (NEMHS) to purchase the Tannery site.

NEMHS provides emergency medical services to Camden Hope, Lincolnville, and Hope. Since they became the EMS provider for the 4-towns last year, they have been looking for a suitable site to locate their administrative offices. North East approached the Town to consider selling the Tannery parcel to them for the future site of their administrative offices. The Select Board discussed the letter of intent from North East and determined that North East would be a good fit for that site, would complement the neighborhood, and would meet the development guidelines for the Tannery site.

Among those requirements are ensuring the Riverwalk remains open to the public, retention of the street trees, and creating good paying jobs. One of the aspects of the site that appealed to North East was the Riverwalk . They consider locating next to the Riverwalk to be a great amenity for their employees and it fit into North East’s mission of community wellness. North East currently has approximately 30 employees in this area and will hiring more people.

According to the Letter of Intent, North East proposes to purchase the site for $75,000. They will have a 90 day period to perform customary due diligence related to the property such as title search, zoning and land use review, property survey, building permit requirements, MDOT driveway and entrance permit review, and environmental contamination review. Assuming their review is positive, North East intends to begin construction next spring.

Background: The Town of Camden owns the parcel located at 116 Washington Street (Rte 105). The so-
called “Tannery site” is the former location of the Apollo Tannery that closed in 1999. The property was tax acquired by the Town in 2003. The parcel is located in the River Business District and is zoned for mixed uses. The buildable area is approximately 2 acres; the remainder of the site (approximately .77
acres), is a public trail along the Megunticook River known as the Riverwalk).

Due to the site being used as a tannery for many years, the parcel was considered a Brownfield due to environmental contamination. The Town worked with the State Department of Environmental Protection to undertake an extensive remediation effort to address contaminants on the site. The cost of building removal, soil removal, and site remediation was in excess of $800,000 to the Town.

In 2007, the Apollo Tannery Redevelopment Work Group was formed to consider options to develop the site and create jobs. In 2008, the group recommended that the Town sell the site at a reasonable, market-based price, include incentives if necessary to attract a new owner or business that would create good-paying, year-round jobs in an industry or business sector deemed acceptable to the neighborhood and the Town.

1. The site. Since NEMHS was awarded the contract to provide emergency medical services to Camden, Hope, Lincolnville and Rockport in June 2013, NEMHS has been actively looking for a suitable location. NEMHS has been operating from a leased space in Rockport which does not meet its space needs. The Tannery site fits NEMHS' needs as it provides immediate access to provide Emergency Medical Services (EMS) to the 4 communities, as well as non-emergency transport services.

This site also has space to construct a building with sufficient space for professional administrative staff, training facilities, sleeping quarters for the EMT's, wellness services to the community, and other business needs. The flat and open layout of the site easily facilitates NEMHS' current and f uture operational needs, and also allows development of complementary businesses or mixed uses on the site.

2. Town Meeting Warrant -Guiding Principles. The Town Meeting has approved a Warrant Article each year since 2008 which authorizes the Select Board to sell the tannery site as a single parcel for reasonable fair market value, and to incorporate "as many of the Guiding Principles as reasonably practicable in the discretion of the Select Board." The Guiding Principles suggest the types of businesses that the Town should try to attract. See Apollo Tannery Site Re-development Workgroup: Report and

Recommend-ations to Town of Camden Select Board (2008)
 NEMHS understands that the Riverwalk is and will remain open to the public. They are excited about being located adjacent to the Riverwalk.
 NEMHS understands that the street trees are expected to remain.

3. Jobs. NEMHS currently has approximately 30 employees in this area. They will be hiring more. These will be good paying jobs that include benefits.

NEMHS has not indicated an interest in the "Free Land for Jobs" incentive although they would likely meet the eligibility requirements (24 jobs in 5 years that meet the "quality jobs" definition of wage and benefits which means a wage/benefits approximately 25% higher than average wages and benefits in Knox County.

One area that NEMHS intends to increase is training. There is a scarcity of Emergency Medical Technicians (EMT's) statewide and in this region. North East will serve as a training site; this will help attract young people to this profession and develop a career in health care and community para-medicine.

4. Traffic. The number of vehicles and number of trips NEMHS will generate will be a change but will not significantly change traffic volume in that area. The preliminary plan shows parking for 35 spaces for employees and some outside vehicle storage. This will fluctuate depending on future development plans, training session, and community clinics, etc.

If the lot was fully built out as allowed, it could accommodate one or more buildings totaling more than 100,000 sq. ft. with a height of 4 to 5 stories depending on the layout. The Tannery re-use report noted that "for professional office space or industrial uses allowed in the B-R District, the former Apollo Tannery site could accommodate buildings that could be occupied by 300 workers, and still have enough space available to accommodate parking for that size workforce on the site."

5. Noise. The first image some people might have is sirens sounding at all hours of the day. It is important to remember that the Camden Public Safety Building is less than a half mile away and the police and fire vehicles sound their sirens when they go on calls.

NEMHS wants to be a good neighbor. As shown by its operations in Rockport and elsewhere, NEMHS instructs its drivers not to activate the siren unless necessary. NEMHS is the EMS provider for the 4 Towns, but they also provide non-emergency van transport services. They train their drivers not to turn on sirens when they leave for a call until and unless they have arrived at a major intersection or they are on a street that requires a siren for safety reasons.

6. Business Plan. One of the requirements of a prospective buyer is to provide a business plan. NEMHS will provide this as part of the due diligence period.

7. Building and Site design. NEMHS' proposes to purchase the entire parcel (as provided in the "Guiding Principles"), but they do not plan to develop the entire site at this time. They have a preliminary site design (done by Landmark Surveyors and Engineers of Rockport). The preliminary plan is to construct a new building and parking area on the area closest to the Rawson Avenue end of the site. This keeps access to the Riverwalk open and inviting. NEMHS understands the importance of site aesthetics and making sure
the building is attractive, has landscape buffering, and fits in and complements the neighborhood.

NEMHS has not made any decisions about the remainder of the parcel that is not being developed initially. As noted above, they will welcome the public to use the Riverwalk. The site lends itself to a complementary mixed used development.

8. Construction timeline. NEMHS hopes to start construction in the spring of 2015. The timing will depend on getting the development plans finalized and acquiring the necessary approvals and permits.

9. Purchase price. NEMHS has offered to purchase the site for $75,000. The Town's assessed value of this property is $75,700.

10. Taxes. NEMHS is a for profit company that will be taxable and will pay taxes.

11. What's Next? The Town and NEMHS will enter into negotiations for a Purchase and Sale Agreement. The Agreement will include a 90 day due diligence period. During that time, the company will satisfy itself that this site is appropriate and will meet its needs (this includes reviewing regulatory and permit requirements, environmental issues, title, etc). The Purchase and Sale Agreement requires a vote of the Select Board.

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