Business Gets OK to Fill Vacancy
February 27, 2008

HOULTON- Four years of hard work, struggle and frustration came to an end Monday evening, after the Shiretown Development Corp. successfully approved a deal that will bring a business to the former Houlton International Corp. facility.

During the more than hour-long meeting, the shiretown board, which functions as an economic development arm for the town, voted 7-2 to enter into a purchase-and-sale agreement with AKTEM Business Park Inc. Final details of the agreement will be worked out between the firm and the town’s attorney in the coming weeks. Once complete, AKTEM could bring an estimated 25 to 40 jobs to the former HIC facility.

The manufacturing and development company, which also operates in the Coldbrook Business Park in Hermon, builds and leases steel buildings, develops new affordable housing and conducts metal finishing of turbines, firearms and miscellaneous parts. The six-year-old company is owned by Houlton native Chad Walton.

It has been approximately four years since the SDC entered into a $161,000 purchase-and-sale agreement with officials from Houlton International. At the time, the SDC planned to use the massive complex acquired through the agreement to attract a larger business to the area. The facility is located at Houlton Industrial Park. Several firms looked at the building, and the board had leased out parts of it.

Last year, Shiretown Development began to consider putting the building on the market or finding someone interested in demolishing it for its scrap metal. In the past month, however, the board has been meeting in executive session with two tenants — AKTEM and Transportation Distribution LLC.

As part of the deal, AKTEM will lease the building from the town over a three-year period at a cost of $150,000 with interest. The interest will be paid monthly and adjusted quarterly. The final price could change, based on the number of jobs AKTEM brings to the facility. If AKTEM brings fewer than 12 full-time jobs at the end of the three years, the firm will pay the full $150,000. If fewer than 40 jobs are created, AKTEM will pay $75,000. If 40 or more jobs are created, the town will excuse all payments except interest.

"It is a win-win situation for the town that is tied to job creation," said Town Manager Douglas Hazlett. The company expects to take up residence in the building by fall or next spring. The SDC acknowledged that deciding between the two offers was difficult. All of the directors expressed hope that both businesses could set up shop in the municipality. Those who supported crafting the deal with AKTEM said they did so for a variety of reasons.

Director Walter Goodrich said he felt AKTEM had the most potential and was a good fit for the building. Director Sue Tortello agreed, saying she felt AKTEM had the best offer and had the potential to bring "exciting, good-paying jobs." Houlton residents Phil Bernaiche and Carl Lord also spoke in favor of a deal with AKTEM.

Director Stan Ginish, on the other hand, said he favored inking a deal with Transportation Distribution LLC because the company would pay $75,000 cash for the building and move into the facility immediately. Officials from the warehousing and trucking firm estimated they could bring seven or eight jobs to the complex.

Director Gerald Adams also said he supported a deal with Transportation Distribution LLC for many of the same reasons. He noted that the company already operates a warehouse in nearby Hodgdon and had contributed to the local economy.

"Is it good business to lease the building when you have someone who wants to buy it?" he asked his fellow directors.

Walton told the board that his company could purchase more land in the industrial park in the future to put up more buildings should it outgrow the site.