Riverside Disposal informed the city of Gardiner recently that the company won’t be buying two lots in the city’s business park, contrary to what it said last year.

The Chelsea-based waste removal and recycling company had agreed last year to buy 10.3 acres in Libby Hill Business Park for $208,000 and had planned to move its operation’s headquarters to the city’s business park.

However, after reviewing what it would cost the company once it began paying the full tax rate, after the credit-enhancement agreement would expire more than a decade down the road, the company decided to not go through with the deal, said Jeremy Cameron, who is in charge of business development at the company.

The company was looking for a larger location and to expand eventually with a recycling center and a transfer station, Cameron said. The idea was to have enough space to accommodate for growth and to prepare for any changes in waste disposal options in the future, he said.

The company plans to stay for now at its location on Route 9 in Chelsea, but it could move eventually to a large property, possibly even to the same lots at Libby Hill, Cameron said.

When Gardiner announced the sale last June, it was expected to be the first sale at the business park since 2011. City officials said at the time that they were hopeful the sale and tax revenue from the project would help reduce a deficit of more than $900,000.

Shortly after the city announced the sale to Riverside Disposal, it closed on another deal to sell a lot in the park to the owner of Central Maine Meats, which was planning to build a slaughterhouse for poultry and red meat. The poultry side of the slaughterhouse opened earlier this year, and the red meat side is expected to open by August.

City Manager Scott Morelli said the city is disappointed that the Riverside Disposal sale didn’t go through, but Gardiner is open to working with the company in the future if the company’s situation changes.

The city is working with another business in the park on an expansion, and another lot is likely to be sold in the coming months, Morelli said.

Since 1999, the city has incurred more than $9 million in debt to build and later expand the business park.

Because lot sales haven’t met expectations, Libby Hill has a deficit of more than $900,000. Without any additional lot sales, the deficit is expected to continue climbing until it reaches more than $1 million in fiscal year 2019, according to the proposed city budget. Beginning the year after that, the revenue is expected to exceed expenses, decreasing the deficit.

If nothing changes, the fund is expected to become positive at the end of fiscal year 2027.

Paul Koenig — 621-5663

pkoenig@centralmaine.com

Twitter: @pdkoenig

Copy the Story Link