Wiscasset officials seek more time for housing project
Wiscasset Selectman Allisa Eason told Lincoln County commissioners Sept. 16, the town selected Old Ferry Road as its affordable housing project site because "it was pretty." But now, town officials eye something else for the Old Ferry Road property. A developer has expressed interest in the 300-acre town-owned property and town officials want more time to contemplate the best use for the Old Ferry Road parcel.
On Sept. 16, Wiscasset officials were added to the county commissioners' agenda to discuss the possibility of delaying conditions on a federal housing grant dedicated to first responder and workforce housing. In November 2024, Wiscasset was one of four Lincoln County municipalities to receive an American Rescue Plan Act housing grant awarded by the county. The grant came with conditions which included using $240,000 for an engineer, land use planning firm, traffic study and market analysis. The funding would also go to developing concept site plans based on a regulatory analysis. The proposed affordable housing site is slated to produce up to 100 units.
But that was then, and this is now. Wiscasset officials were approached by a developer who wanted the property for a client. Economic Development Director Aaron Chrostowsky told commissioners Sept. 16, "This is a transformative opportunity for the town and county. We are learning more and more about the project, but we believe that this is a viable project that needs more time to develop," he said.
Chrostowsky reported the proposed data center has a $5 billion estimated valuation and would create 150-200 jobs. "That's billion with a B," he said. "We felt we had a fiduciary responsibility to follow the developer's lead. They are spending their own money by contracting with engineer firms, environmental and power studies so they have skin in the game."
On Sept. 17, Chrostowsky described the new proposal as an artificial intelligence-based business and data collection. "The town has signed a non-disclosure agreement with the developer so there is not much more I can tell you," he said.
The property was previously owned by Maine Yankee, and Chrostowsky reported the parcel has a $704,100 municipal property valuation. Chrostowsky said the Old Ferry Road site was an ideal location due to its proximity to the former Maine Yankee nuclear plant and Mason Station. "This is a unique location for its energy potential which can't be located anywhere else in Lincoln County or the state," he said.
But county officials became concerned about Wiscasset's seemingly dual-intentions for the property in March. County Administrator Carrie Kipfer sent a March 3 letter to town officials. "I'm writing you today because the commissioners have concerns that the scope has significantly changed since the project was approved funding," she wrote.
Later in the letter, she sought clarification from town officials regarding Wiscasset's intent. "Until the commissioners receive answers, the county will withhold the award payment in reserve. I would be happy to meet with the selectboard if you would like to discuss this further," she wrote.
Since March, town and county officials have sent several emails to each other regarding their intentions toward the ARPA grant. On March 24, Wiscasset officials responded they had no intentions of subsidizing a private development with ARPA funds and no changes were made in the proposed project. "From the very beginning this included elements of commercial or business development along with affordable housing," Town Manager Dennis Simmons wrote. "The town's letter emphasized its desire to explore mixed use development of the property stating 'the development will attempt to incorporate several parcels for future development of businesses in the clean energy sectors.'"
In the letter, Wiscasset also reported how the developer became aware of the property. The town received technical assistance from the governor's office through the Maine Community Energy Redevelopment Program. Simmons explained how the MECERP led to another possible Old Ferry Road economic development project.
According to town officials, the MECERP engaged the public in determining land uses for the development which led to a developer contacting the town to discuss a potential use for the property. "We have explained to them (developer) our continued interest in building affordable housing on the Old Ferry Road property. We are determining whether their project would be compatible with this component," Simmons wrote. "This project has the potential to be game-changing, not only for the town of Wiscasset’s economic development but also for the county as a whole. The potential is such that it would be a grave disservice to our community not to do our due diligence and explore this possibility, especially in light of the 16% increase in our county tax assessment."
Commissioner William Blodgett cautioned Wiscasset officials about deadlines required under the federal ARPA grants. He also wanted more information and specifics regarding their mixed-use proposal. "You need something more than I have an idea," he said.
Lincoln County may also face limitations regarding awarding money this late into the grant's existence. Kipfer will inquire about possible ARPA restrictions and report back to the commissioners. Blodgett said once the commissioners have a better understanding of ARPA regulations then they can make a decision. All Lincoln County ARPA funds must be dedicated by Dec. 31, 2025.