BELGRADE — Residents had mixed reactions to running a proposed $86 million natural gas pipeline through town.

Sidney recently rejected a tax break for the project, so Kennebec Valley Gas Co. officials are eyeing a route through Belgrade via routes 27 and 11. They’re also asking the town for a tax break.

Richard Silkman, a partner with the Portland-based gas company, said the route through Sidney is a mile shorter that the proposed 10-mile Belgrade route, but Belgrade has more potential customers, including residences, Belgrade Central School, the town office and two major businesses — builder supplier Gagne & Son and Hammond Lumber Co.

But the heads of those two potential customers were noncommittal Tuesday to tapping into the gas supply.

Peter Gagne, vice-president of Gagne & Son, said he just invested heavily in making his business energy efficient and probably wouldn’t convert to natural gas. “I can’t really say it’s something I’m going to take advantage of,” he said.

Don Hammond, president of Hammond Lumber, said officials from his business discussed the project with the company.

About 30 people showed up at the North Belgrade Community Center Tuesday night to discuss the pipeline, which will run up the Kennebec River for about 60 miles, from Richmond to Madison.

Silkman pitched a tax increment financing deal with the town, but also said his group doesn’t need permission to build the pipeline. The Public Utilities Commission granted preliminary approval for the project and the gas company is requesting tax breaks from the dozen communities on the line to help finance it.

For the first 10 years of the TIF, the town would get 20 percent of the tax revenues from the pipeline, after that the town would get 40 percent. After 15 years, Belgrade would get all of the tax revenues.

The town can call a special town meeting or wait until the June 12 primary election to vote on the TIF.

Silkman said his group can still build the pipeline along Middle Road in Sidney, but would prefer to go through a community giving the tax break. If the town rejected a TIF, the company would decide what the best option would be financially.

He added, “We have a right under Maine law to be there, so you can’t say no” to the project. The pipe itself would be taxed and he said the company isn’t taking any property off the tax rolls, so the town can’t lose money on it.

Resident Judy Bielecki said she can’t understand how Belgrade fits the criteria for a TIF, since there’s no large commercial industry and the TIF money can only be used by a municipality for public improvements.

Silkman agreed, but since the town’s economy — which includes several lakes — relies on tourism, the money could be spent on things like recreation-based projects.

Residents had concerns about safety, the environment, property values and the possible economic burden.

Sut Selectman Ernie Rice said, “There’s some real savings if we do a TIF.” He said the town should find out what the tax revenue would be, hold a public hearing and vote.

Mechele Cooper — 621-5663

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