Governor LePage Reiterates Support for Kestrel and Job Creation

For Immediate Release: Friday, January 13, 2012

Contact: Adrienne Bennett (207) 287-2531

 

Governor LePage Reiterates Support for Kestrel and Job Creation

 

AUGUSTA – On Friday, Governor Paul LePage continued to voice his support for the Kestrel Project at Brunswick Landing.

“The Administration, State agencies, and Midcoast Regional Redevelopment Authority have been steadfast in their commitment to provide the available resources for this project. The Maine team has put forth a very comprehensive and competitive financial package for Kestrel,” said the Governor. “We are ready to make this happen and have been for many months.” 

Earlier in the week, the Governor discussed the issue with Kestrel and told them all that was left remaining was to get their updated financial information and we would get the ball moving immediately. “All that is left is for our team to receive updated and thorough financial information from Kestrel.”  The Governor added, “As Governor, it is my responsibility to ensure prudent use of Maine’s business development programs.”

Various agencies have collaborated to create the resources necessary to make this happen.

•  $300,000 Community Development Block Grant already in the hands of Kestrel
•  Lease write-down rate that carries a value of $250,000 per year
•  Exemption of local property taxes that carries a value of $105,000 per year
• Commitment of $750,000 in direct building improvements - $117,000 of that has already been invested
• Commitment from Midcoast Regional Redevelopment Authority (MRRA) to issue $10 million in tax revenue bonds
• Deferring rent payments until more New Markets Tax Credits become available

Maine officials have been consistent in their support, and have followed through with the commitments the state agreed to provide Kestrel. The State of Maine has come back to the table with additional assistance when Kestrel’s expectations of financing from Coastal Enterprises, Inc. were not met.   The Finance Authority of Maine is prepared to consider a $4.75 million loan guarantee. The Midcoast Regional Redevelopment Authority is prepared to provide a $3 million guarantee or letter of credit to assist the company’s efforts to secure its capital needs. In addition, a private investor has joined the state and others at the table ready to see the project through.

Any business development program or financing package relies upon the receipt of basic financial information from the company. Upon receipt from the company of requested financial information this project may certainly move forward successfully.

“We believe in the people behind this project and want to see the project move forward as planned,” said George Gervais, Commissioner of the Maine Department of Economic and Community Development. “We all remain at the table waiting for Kestrel to join us and we’ll continue to help Kestrel seek solutions to their challenges. We all want a success story in Maine.”

 

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