RANGELEY (NEWS CENTER Maine) - A potential new buyer for Saddleback Mountain is slowing his roll thanks to a decision by Governor LePage.
The governor recently designated 32 "opportunity zones" in Maine - towns where investors will receive tax incentives. Rangeley didn’t make the cut.
For that reason, a potential buyer is hitting the brakes on a possible deal.
The opportunity zone program is part of the Trump Tax plan passed last year, and is meant to encourage long-term investments in low-income urban and rural communities.
Businesses who invest in qualifying communities receive tax breaks.
Maine has 128 eligible areas - from which Governor LePage was able to pick just 32 for the program. The Department of Economic and Community Development asked for community input, organized feedback, and submitted everything to the governor for a decision in April. The final 32 selections were approved by the Trump administration and brought into the program in May. DECD spokesperson Douglas Ray said areas have to exhibit not just a struggling economy, but a great potential for development.
Rangeley has struggled since Saddleback Mountain closed three ski seasons ago.
The town reported losing $15 to $20 million in revenue in just the first year.
An Australian developer agreed to buy the mountain almost a year ago, but hasn't closed the deal and has since been plagued by lawsuits and fraud accusations.
A Boston company called "Arctaris Impact Fund" recently stepped in and considered investing up to $100 million in the mountain and surrounding community. Its managing partner says the lack of tax incentive is causing him to hit the brakes.
Rangeley Opportunity Zone letters by NEWSCENTER26 on Scribd
“I believe that our offer suggested that there were certain requirements that we were looking for from the state of Maine,” explained Jonathan Tower. “I don't believe that we specifically said the ‘opportunity zone’ designation was an absolute requirement, but we said that we were working on some things and that these would be integral to the deal.”
He says his company does not have any meetings planned with the Berry family, the mountain’s current owners. He said he will potentially consider other avenues for investing in Saddleback, like immigrant investor programs.
The Saddleback Mountain Foundation, a community group that tried to buy the mountain outright, supported the opportunity zone designation. The Berry family, the current owners, did not respond to a request for comment.