An Act to Create the Lincoln Mill Facilities District
Maine Legislature, Session 131, LD 2270
Committee Amendment CA_A_S650 (Senate)

COMMITTEE AMENDMENT " Pi " to S.P. 986, L.D. 2270, "An Act to Create the
Lincoln Mill Facilities District"
Amend the bill in the emergency preamble in the 4th paragraph in the first and 2nd
lines (page 1, lines 10 and 11 in L.D.) by striking out the following: "facilities and
infrastructure"
Amend the bill in the emergency preamble in the 4th paragraph in the last line (page 1,
line 13 in L.D.) by striking out the followmg: "facilities and infrastructure"
Amend the bill in the emergency preamble in the 5th paragraph in the 2nd line (page
1, line 15 in L.D.) by striking out the following: "facilities and infrastructure"
Amend the bill in the emergency preamble in the 5th paragraph m the last line (page 1,
line 18 in L.D.) by striking out the following: "facilities and infrastructure"
Amend the bill in the emergency preamble in the 6th paragraph m the 3rd line (page 1,
line 21 in L.D.) by strikmg out the following: "facilities and infrastructure"
Amend the bill in the emergency preamble in the 7th paragraph in the first and 2nd
lines (page 1, lines 23 and 24 in L.D.) by striking out the followmg: "facilities and
infrastructure"
Amend the bill by striking out everything after the enacting clause and before the
emergency clause and inserting the following:
'See. 1. Territorial limits; name. The Lincohi Mill Facilities District is established
in the following territory, which includes the so-called Lincoln Paper and Tissue mill site:
all the property other than the properties described in subsection 1 within the portion of the
0 Town of Lincoln bounded on the southwesterly side by Park Avenue running northwesterly
to the Town ofLincohi's transfer station and to the property of the Lincoln Regional Airport
and then along and around the airport property boundary to the Penobscot River,
encompassing the airport property; on the northwesterly side by the Penobscot River; on
4 the northeasterly side by and along the northeasterly Lincota Paper and Tissue mill site and
Town ofLincotn property boundary that runs parallel to Haynes Street and an extension
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thereof to the Penobscot River; on the easterly side by the railroad track that runs parallel
ROS to Main Street; and on the southeasterly side by United States Route 2.
1. The territory does not include the following properties within the Town ofLincohi
designated as: 43, 49, 55, 93 and 95 West Broadway; 2-4, 6-9, 11 and 13 - 18 Katahdin
Avenue; 1 -2,4- 8, 10- 13 and 15 Spring Street; and 25 and 29 Park Avenue as of the
effective date of this Act.
Sec. 2. Purpose. The district is authorized to provide infrastructure and related
services to properties and persons withm its territorial limits. The district may also provide
infrastructure and related services to properties and persons outside of the district territory
upon petition by the property owner or person to the district subject to the limitations in
this section.
If the itifi-astructure and related services petitioned for are not public utility services
and are in a geographic area in which another entity is authorized to provide such
infrastructure and related services, the infrastructoe and related services provided by the
district may not materially conflict with the infrastructure and related services provided by
the other entity or the growth boundaries planned by the other entity.
If the infrastructure and related services petitioned for are public utility services and
are in a geographic area in which a public utility is providing or is authorized to provide
such infrastructure and related services, the district's provision of infrastructure and related
services must comply wilh applicable provisions of the Mame Revised Statutes, Title 3 5-A.
Sec. 3. Definitions. As used iti this Act, unless the context otherwise indicates, the
following terms have the followmg meanings.
1. Bond. "Bond" means a bond or note or other evidence of indebtedness authorized
under this Act, whether issued under or pursuant to a bond resolution, tmst indenture, loan
or other security agreement, including revenue bond fmancing.
2. District. "District" means the Lincoln Mill Facilities District as established in this
Act.
3. Infrastructure and related services. "Infrastructure and related services" means
services that include wastewater treatment, including sewer and sanitary services, for
commercial and industrial users; water service for industrial purposes, including cooling
water, but not for municipal or domestic use; and services incidental to providing and
facilities and infrastructure necessary to provide such wastewater treatment and water
service.
4. Operating revenues. "Operating revenues" means funds available to the district
from fees, fares, royalties, sales, rental or sale of property and miscellaneous revenue and
6 interest not otherwise pledged or dedicated.
5. Real or personal property. "Real or personal property" means those properties and
8 assets existing within or properties served by the district.
6. Reconstruction. "Reconstruction" means any activities undertaken to maintain or
improve the infrastructure and facilities of the district, or any part of those facilities, as
modem, safe and efficient facilities and includes, but is not limited to, any rebuilding,
redesign, improvement or enlargement of the real properties or environmental mitigation
activities within the district.
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K0g See. 4. Powers. The district may:
"- 2 1. Sue and be sued. Sue and be sued;
2. Bylaws or rules. Adopt bylaws or mles consistent with this Act for the governance
of its affairs and the operation of its facilities and as necessary to cany out the provisions
of this Act;
3. General powers. Exercise all of the general powers of corporations under the
Maine Revised Statites, Title 13 -C, section 3 02;
4. Public safety. Provide for the public safety by imposing appropriate rules,
regulating appropriate use of the facilities and enforcmg laws and rules as they apply to the
use of the facilities operated by the district;
5. Fees, charges, rents and sales. Charge and collect fees, charges and rents for
services, sell any products or by-products derived from or related to the provision of
infrastructure and related services and use the proceeds of those fees, charges, rents and
sales for the purposes provided in this Act, both subject to and m accordance with any
agreement with bondholders that may be made as provided in this Act;
6. Licenses and permits. Apply for licenses and permits required to provide
infrastructure and related services authorized by this Act;
7. Land and facilities. Own land, and own, construct, manage and maintain
associated facilities, necessary for the provision of infrastructure and related services. The
district may transfer properties and issue easements required for those facilities and may
own properties and facilities jointly or in common with other public and private entities;
8. Government contracts. Contract with the Federal Government or its
instrumentalities or agencies, the State or its agencies, instrumentalities or municipalities,
public bodies, private corporations, partnerships, associations and individuals in
furtherance of and to carry out the purposes of this Act;
9. Financial assistance. Borrow money and apply for and accept advances, loans,
grants, contributions and other forms offmancial assistance from the Federal Government,
the State, municipalities, quasi-municipal entities or other public bodies or from other
sources, public or private, for the purposes of this Act, give any security that is required
and enter into and carry out contracts in connection with that financial assistance;
10. Bonds. Enter into loan or security agreements with lending institutions for the
issuance of bonds and exercise with respect to those loan or security agreements the powers
3 under this Act for the issuance of bonds;
11. Operating revenues; facilities. Provide from operating revenues for the
5 ownership, maintenance, construction or reconstruction or operation of facilities to ensure
the public safety for which the district has not otherwise provided; and
12. Other actions. Take other lawful actions necessary and incidental to these powers.
Sec. 5. Trustees, appointment; tenure of office; vacancies; first meeting
and organization of board; transition provisions; annual report. The affairs of
the district are managed by a board of trustees composed of 5 trustees who are chosen as
provided in this section.
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The tmstees of the first board of trustees are appointed to initial terms, and thereafter
trustees are appointed, by the town council of the Town of Lincobi, with one council
member serving as a direct representative of the Town of Lincoln, Trustees need not be
residents of the Town of Lincoln except for the trustee serving as a direct representative of
the council. Each trustee is initially appointed to a one-year, 2-year, 3-year, 4-year or
5-year term in order to create staggered terms for the full board of trustees. Vacancies are
filled by appoitrtment by the council for the unexpired term.
As soon as convenient after their appointments, the first board of trustees shall hold a
meeting at some convenient place in the Town of Lincoln, to be called by any trustee
thereof in writing, designating the time and place and delivered to the other 4 tmstees, not
less than 7 days before the meeting. The board shall then organize by electing from their
own members a chair and a clerk. The board shall choose a treasurer of the district, adopt
a corporate seal and bylaws and perform other acts withm the powers delegated to the board
by law. The board may choose and fbi the compensation of any other necessary officers
and agents, who serve at the pleasure of the board. The treasurer shall furnish bond m such
sum and with such sureties as the trustees approve, the cost thereof to be paid by the district.
Members of the board are eligible to serve in any office of the board. The board may
employ an executive director, technical experts and other agents and employees, permanent
and temporary, that the board requires and may determine their qualifications, duties and
compensation. For required legal services, the board may employ or retain the board's own
counsel and legal staff.
The tmstees must be sworn in to faithfully perform their duties, which include the
duties of a member who serves as clerk or clerk pro tem. The trustees shall make and
publish an annual report, including a report of the treasurer.
After the appointment of the first board of trustees, subsequent tmstees are appointed
by the council to 5-year terms in accordance with this section.
Sec. 6. Property tax-exempt. The property, rights and franchises of the district are
forever exempt from taxation.
Sec. 7. Authorization to borrow money and to issue bonds and notes. For
accomplishing the purposes of this Act, the district, by resolution of the board of trustees,
is hereby authorized to borrow money temporarily and to issue its negotiable notes and, for
the purpose of renewing and refunding the indebtedness so created, of paying necessary
expenses and liabilities incurred under the provisions of this Act, including organizational
and other necessary expenses and liabilities, and in acquirmg properties, paying damages,
laying sewers, drains and conduits, constructing, maintaining and operating a sewage plant
or system and makmg renewals, extensions, additions and improvements to the same, and
to cover interest payments during the period of construction. The district, by resolution of
8 the board, is also hereby authorized to issue bonds, notes or other evidence of mdebtedness
of the district in one series, or in separate series, in an amount or amounts at such rates of
interest and on such terms and conditions as the board determines. The bonds, notes and
other evidence of indebtedness are legal obligations of the disb-ict and may be secured by
the revenues of and properties owned by the district and must bear the seal of the district
and must be signed by the treasurer of the district and countersigaed by the chair of the
board, and any attached interest coupons must bear the facsimile of the signature of the
treasurer. The district may refund and reissue m one series, or in separate series, its bonds,
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^i notes and other evidence of mdebtedness, and each authorized issue constitutes a separate
F— loan. All bonds issued by the district are legal investments for savings banks in the State
and are tax-exempt.
Sec. 8. Rates and tolls; application of revenues. Except as otherwise established
through a specific infrastructure, services or comparable agreement with the district, all
persons and corporations, whether public, private or municipal, shall pay to the treasurer
of the district the entrance rates, tolls, rents and charges and other lawful charges
established by the trustees for the wastewater treatment, including sewer and sanitary
services, and water services used, or to which such beneficial services are available with
respect to their lots or parcels of land, and, in determining real estate interests, the term
"real estate" as defmed in the general laws of the State pertaining to sewer and sanitary
districts may be applied by the trustees.
The entrance rates, tolls, rents and charges and other lawful charges for infrastructure
and related services may be so established as to provide revenue for the following purposes:
1. Expenses. To pay expenses for operatmg and maintauiing the sewer and water
system; and
2. Principal and interest; reserves. To provide for the payment of the principal and
interest on the indebtedness created by the district and to create such reserves as may be
necessary for the operation of the district.
See. 9. Lien for payment of rates. Except as otherwise established through a
specific infrastructire, services or comparable agreement with the district, there is a lien to
secure the payment of rates, tolls, rents and charges established under section 8 and legally
assessed on real estate within the district, which takes precedence over all other claims on
such real estate, exceptmg only claims for taxes.
The treasurer of the district may sue for and collect the rates, tolls, rents and charges,
all of which must be committed to the treasurer.
In addition to other methods previously established by law for the collection of the
rates, tolls, rents and charges, the lien created pursuant to this section may be enforced
pursuant to this section, as long as in makmg the assessment there is a description of the
real estate served by the several sewers of the district sufficiently accurate to identify the
real estate against which any of the several rates, tolls, rents and charges may be levied.
When a rate, toll, rent or charge has been committed to the treasurer for collection, the
treasurer may, after the expiration of 8 months and within one year after date of
commitment, in the case of a person residing in the town where the rate, toll, rent or charge
is assessed, give to the person against whom the same is assessed, or leave at the person's
6 last and usual place of abode, a notice m writing signed by the treasurer stating the amount
7 of the rate, toll, rent or charge and describing the real estate on which it is assessed, alleging
8 that a lien is claimed on the real estate to secure the payment of the rate, toll, rent or charge
and demanding its payment within 10 days after the service of the notice. After the
expu-ation of the 10 days and within 2 days thereafter in the case of a resident of the town
where the rate, toll, rent or charge is assessed and in all other cases within one year from
the date of commitment of the rate, toll, rent or charge to the treasurer, the treasurer shall
record in the registry of deeds of Penobscot County a certificate signed by the treasurer
setting forth the amount of such rate, toll, rent or charge, a description of the real estate on
which the same is assessed and an allegation that a lien is claimed on the real estate to
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ROS secure the payment of the rate, toll, rent or charge, that a demand for payment of the same
2' has been made in accordance with the provisions of this Act and that the rate, toll, rent or
charge remains unpaid. In all cases, except in the case of a resident of the town where the
rate, toll, rent or charge is assessed, the certificate so filed need not contain the allegation
that payment of the rate, toll, rent or charge has been demanded. At the time of the recording
of the certificate in the registry of deeds pursuant to this section, the treasurer shall file in
the office of the district a tme copy of the certificate and also mail by registered letter to
each record holder of a mortgage on the real estate, addressed to each at the record holder's
last and usual place of abode, a true copy of the certificate. The fee to be charged for such
notice and filing is $1 plus the fee of the registry of deeds for the filing; these fees become
an expense of the person owing the rate, toll, rent or charge. The filing of a certificate m
the registry of deeds pursuant to this section creates a mortgage on the real estate to the
district having priority over all other mortgages, liens, attachments and encumbrances of
any nature, except liens, attachments and claims for taxes, and gives to the district all the
rights usually incident to a mortgage, except that the mortgagee does not have any right of
possession of the real estate until the right of redemption under this section has expired.
If the mortgage, together with interest and costs, is not paid within 18 months after the
date of filing of the certificate in the regisbry of deeds pursuant to this section, the mortgage
is foreclosed and the right of redemption expires.
The filing of the certificate in the registry of deeds is sufficient notice of the existence
of the mortgage provided for in this section.
If the rate, toll, rent or charge with interest and costs is paid within the period of
redemption provided for in this section, the treasurer of the district shall discharge the
mortgage in the same manner as is provided for discharge of real estate mortgages.
Sec. 10. Use of operating revenues. Operating revenues may be used pursuant to
this section.
1. Principal use of revenues. Operating revenues must be used principally to support
facilities owned or operated by the district.
2. Permitted liability limited. Except as otherwise established through an agreement
to provide funds outside of this Act, the expenses incurred in carrying out this Act must be
paid solely from funds provided pursuant to this Act, and no liability or obligation may be
incurred pursuant to this Act beyond the extent to which money has been provided pursuant
to this Act or as otherwise authorized by an agreement to provide funds outside of this Act.
Sec. 11. Property of district. The district holds property pursuant to this section,
1. Lease or sale. Property may be leased or sold to accomplish the purpose or reuse
of the district as determined appropriate by the district. Resources acquired as a result of
the lease or sale of property become operating revenues or assets of the district.
2. Entry upon lands. The district and its authorized agents and employees may enter
upon lands, waters and premises m the district for the purpose of making surveys,
soundings, drillings and examinations that the district determines necessary or convenient
for the purposes of this Act. The entry is not a trespass, but the district is liable for damages
the entry creates.
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3. Authority for transfers of interest in land to district. Notwithstandmg any
"^J 2 provision of law to the contrary, upon district request, on reasonable and fair terms and
conditions and without the necessity for advertisement, order of court or action or formality
other than the regular and formal action of the authorities concerned and those of counties,
municipalities, public agencies or instrumentalities of the State, public service
corporations, special districts and private entities, a county, municipality, public agency or
instrumentality of the State, public service corporation, special district or private entity may
lease, lend, grant or convey to the district real or personal property or rights in that property
that may be necessary or convenient for the effectuation of the authorized purposes of the
district, including real or personal property or rights in that property already devoted to
public or private use. As used in this subsection, "public service corporation" includes a
public utility as defmed in the Maine Revised Statutes, Title 35-A, section 102, subsection
13 and a corporation as defined in Title 13-C, section 102, subsection 4.
Sec. 12. Right of eminent domain conferred. The district is expressly granted
the right of eminent domain and for the purposes of this Act is authorized to take and hold,
either by exercising its right of eminent domain or by purchase, lease or otherwise, as for
public uses any land, easements or interests in land or easements and any rights necessary
for constructing, establishing, maintaining, operating or providing any infrastructure or
related services authorized by this Act.
Sec. 13. Procedure under eminent domain. In exercising the right of eminent
domain, the district by its board of trustees shall file in the office of the county
commissioners of Penobscot County and cause to be recorded in the registry of deeds in
Penobscot County plans of the location of all lands or interests in lands or sewers or sewer
rights to be taken, with an appropriate description and the names of the owners thereof, if
known. When, for any reason, the district fails to acquire property that it is authorized to
take and that is described in such a location, or if the location so recorded is defective and
uncertain, it may, at any time, correct and perfect the location and file a new description
thereof, and in such case the district is liable in damages only for property for which the
owner had not previously been paid, to be assessed as of the time of the original taking,
and the district is not liable for any acts that would have been justified if the original taking
had been lawful. Entry may not be made on any private lands, except to make surveys, until
the expiration of 10 days from such filing, whereupon possession may be had of all of those
3 lands or interests in those lands or property or rights to be taken, but title to lands or interest
in those lands or property or rights does not vest in the district until payment for the land
or interest in land or property or rights.
Sec. 14. Assessment of damages by county commissioners; procedure on
appeals. If a person sustaining damages by any taking pursuant to this Act does not agree
with the district upon the sum to be paid for damages, either party, upon petition to the
county commissioners ofPenobscot County within 60 days of the offer for damages, may
have the damages assessed by them; the procedure and all subsequent proceedings and right
of appeal must be had under the same restrictions, conditions and limitations as are or may
be by law prescribed m the case of damages by the laying out of highways.
Sec. 15. Limitations on crossing public utility or sewer or sanitary district.
In case of a crossing of a public utility, unless consent is given by the company or entity
owning or operating the public utility as to place, manner and conditions of the crossing
within 30 days after consent is requested by the district, the Public Utilities Commission
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may determine the place, manner and conditions of the crossing and all work on the
property of the public utility must be done under the supervision and to the satisfaction of
the public utility, but at the expense of the district. This section may not be construed to
authorize the district to take by right of eminent domain any of the property or facilities of
any other public utility used or acquired for future use by the owner of that public utility in
the performance of a public duty unless expressly authorized pursuant to this Act or by
subsequent act of the Legislature.
In the case of a crossing of the property of another entity providing sewer or sanitary
services, unless consent is given by the company or entity providing such services as to
place, manner and conditions of the crossing within 30 days after consent is requested by
the district, the parties shall submit the dispute for arbitration. The parties may agree on an
arbitrator or, in the event that the parties cannot agree, a panel of 3 arbitrators shall
determine the dispute. The panel of 3 arbitrators must include an arbitrator selected by each
of the parties from the panels of arbitrators offered by the Administrative Office of the
Courts, Court Alternative Dispute Resolution Service created m the Maine Revised
Statutes, Title 4, section 18-B or by the American Arbitration Association or its successor
organization and a 3rd arbitrator selected by the 2 arbitrators selected by the parties. The
arbitration must be conducted in accordance with the rules of the American Arbitration
Association or its successor organization for the conduct of commercial arbitration
proceedings. Both parties are bound by the decision of the arbitrator, and costs associated
with the arbitration must be shared equally between the parties. Either party may appeal
the decision of the arbitrator, to the Superior Court. The arbitrator shall determine the
place, manner and conditions of the crossing. All work on the property of another entity
providing sewer or sanitary services must be done under the supervision and to the
satisfaction of that entity, but at the expense of the district.
Sec. 16. Excavation or repair work, closing of ways. Whenever the district
enters, digs up or excavates a public way or other land for the purpose of laying its sewers
or pipes, constructing manholes or catch basins or their appurtenances or mamtaining the
same or for any other purpose, the work must be expeditiously done with the least possible
0 interruption and, on completion of the work, the district shall restore the public way or land
to the condition it was in prior to the work or to a condition equally as good.
When the work endangers travel on a public way, the municipal officers of the Town
of Lincoln may order a temporary closing of the public way and of any intersecting way
upon request of the district, and the way must remain closed to public travel until the
5 municipal officers consider it restored to a condition safe for traffic.
Sec. 17. Sanitary provisions and penalty for violations. Except as otherwise
established through a specific infrastructure, service or other comparable agreement with
the district, a person who places or leaves any offensive or injurious matter or material on
or in the conduits, catch basins or receptacles of the district contrary to its regulations or
willfully injures any conduit, pipe, reservoir, flush tank, catch basin, manhole, outlet,
engine, pump or other property held, owned or used by the district for the purposes of this
Act is liable to pay twice the amount of the damages to the district, to be recovered in a
proper action.
Sec. 18. Water services. In providing water services authorized under this Act, the
district is authorized to contract for, own and lay pipes, pumps, drains and other facilities
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|h^-^ and provide and make arrangements for water for common use within the district, except
2E ^'-''o that the dista-ict may not provide water for municipal or domestic use.
Sec. 19. Wastewater, sewer and sanitary services. In providing wastewater
services for commercial and industrial users authorized under this Act, the district is
authorized to contract for, own and lay pipes, pumps and drains and design, construct,
improve, repair, maintain, operate, provide and make arrangements for wastewater
treatment facilities and services, including sewer and sanitary services. The district may
not provide wastewater services, includmg sewer and sanitary services, for domestic
sewage.
Sec. 20. Incidental services. The district is authorized to contract for, own,
construct, repair, maintain, operate, provide and make arrangements for infrastructure and
related services mcidental to and comparable to those authorized by this Act to any
customer the district is authorized to serve, including buildings and facilities on the Lincohi
Paper and Tissue mill site as needed, and is authorized to construct roads for common use
withm the district.
Sec. 21. Provisions applicable to all sewer districts not applicable. To the
extent that any part of the district's charter is not in conformity with the followmg
provisions of the Maine Revised Statutes in Title 38, the applicable provisions of this Act
apply and the provisions of Title 38, section 1036, subsection 7; section 1037; section 1040;
section 1042; section 1045; section 1046, subsections 1 and 4; and section 1048, subsection
1, paragraph B and subsection 5 do not apply.
Sec. 22. Dissolution provision. Upon dissolution or liquidation of the district, and
upon acceptance by the municipal officers of the Town of Lincohi of that dissolution or
liquidation, title to all of the district's property vests in the Town of Lincoln as the
municipality participating in the efforts of the district.'
Amend the bill by relettering or renumbering any nonconsecutive Part letter or section
number to read consecutively.
SUMMARY
This amendment replaces the bill, keeping the substance of the bill but makmg the
following changes to the bill.
1. It excludes certain properties from the district territory.
2. It establishes provisions governing providing infrastructure and related services
3 outside of the district territory.
3. It removes the requirement that 4 of the tmstees be business representatives and
5 provides that the trustees may not meet without notice.
4. It clarifies that bonds, notes and other evidence of indebtedness are legal obligations
of the district and may be secured by revenues of or properties owned by the district.
5. It provides that a petition to the county commissioners of Penobscot County
9 regardmg a taking by eminent domain must be filed with the county commissioners within
60 days of the offer for damages.
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COMMITTEE AMENDMENT " A " to S.P. 986, L.D. 2270
6. It establishes requirements for the crossing of property of another entity providing
sewer or sanitary services.
7. It adds a provision clarifying the authority of the district to provide wastewater
services for commercial and industrial users and specifies that, to the extent that any part
of the district's charter is not in conformity with certain provisions of the Maine Revised
Statutes, the district's charter provisions apply.
8. It removes provisions providing the district with the authority to provide electric
services, broadband, data and telecommunications services, gas services and thermal
energy services.
9. It updates the terms used in the bill for consistency and clarity.
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