The state of Maine would not, could not and did not provide Kestrel with the needed tax credits to locate in Maine.

A definition of “tax credit” is a reduction in the amount of taxes owed, not a free ride, and I, for one, would rather have some taxes paid rather than no taxes.

With the proposed $7.8 million (in April 2011) as well as other grants, rent writedown, money for building improvements and money from proposed tax revenue bonds, Kestrel would have had about $16.0 million (if all above were granted). With these figures Maine would have been about $23.0 million short of the desired goal of $39.0 million.

It would seem that someone (like Warren Buffet) would, if approached, provide Kestrel with the additional money to keep it in Maine. I feel sure that Wisconsin also has money problems but was able to work around them and secure Kestrel. The upshot is that what killed the deal, for Maine, was and is paralysis by analysis.

Harold Withee

Winslow


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