BELGRADE — A proposed natural gas pipeline could spur more than $9 million in new investment in town and between $26,000 and $131,000 in annual revenue in the years to come, according to an analysis presented to town officials.

Ken Young, executive director of the Kennebec Valley Council of Governments, and Anthony Buxton, an Augusta attorney and partner of Kennebec Valley Gas Co., presented the analysis Tuesday night to the Board of Selectmen. Gas company officials are trying to entice the town to approve a tax break for the gas line project, a request that’s been made of the dozen central Maine communities affected by the project.

About 40 people attended the board meeting at the North Belgrade Community Center.

Peter Schultz, of Rome, who owns window-covering wholesaler Dirigo Stitching Inc. in Skowhegan, said the pipeline is the biggest economic boon to the Kennebec valley in 40 years.

He said his business has been battered by competition from overseas manufacturers and the rising price of fuel oil. He had to lay off 150 people to sustain his business when just about every account started buying overseas because of cheap labor. Last year, he said he spent “a ton of money” insulating his business, which should have cut his heating oil bill by half, but because of price increases, he only saved 30 percent.

“I’m sitting here listening to this and my heart is pounding,” Schultz said. “This is so germane to my business in Skowhegan.”

He said the gas line is “essential for my business, for economic growth. I need it and so do my employees.”

Buxton said businesses that hook up to the natural gas pipeline that will run from Richmond to Madison — including about 10 miles through Belgrade via routes 27 and 11 — will save on fuel bills and can use the extra money to expand and increase their work force.

Gas company officials are seeking to route the line through Belgrade after Sidney residents voted down the tax break the gas company is seeking.

At Tuesday’s meeting, town officials were told the 15-year tax increment financing district would mean new investment of $9.3 million. Taxes are returned to the company in decreasing increments over the 15 years and under the agreement, for the first 10 years the town would get $26,226 each year in tax revenue, $52,452 a year the last five years and $131,130 a year once the 15 years is up.

Young, of the council of governments, which is an advsory corporation formed by area municipalities, said that money could be put in the town’s general fund or put in a special account and used for specific purposes.

Belgrade resident Laura Childs had a handout for the audience that said recent legislation allows the project to borrow money with the aid of the Finance Authority of Maine “leaving Maine taxpayers to foot the bill if the company defaults.”

“What are your other options if Belgrade says no?” Childs asked Buxton. “Can you force another community and where would you go if we said no?”

Buxton said he and his partners are looking at other options, but they prefer Belgrade because there are large companies like Gagne & Son and Hammond Lumber that could be potential customers.

“There’s better businesses if it comes through here,” Buxton said.

Selectman Ernie Rice said he’s in favor of the pipeline because it will help businesses save money.

Resident Jack Sutton wants the gas company to combine work on the pipeline with repairs the state Department of Transportation has planned on a section of routes 8 and 11.

“I’ve already been contracted by DOT and they’re very keen to have the pipeline in before the road is fixed,” Buxton said. “And pipeline partners are keen to do that as well.”

Buxton said communities where natural gas is available have a better economy than those dependent on oil.

“What we’re asking you to decide is, can you trust us? And ask that you to assess the risk,” he said. “If we don’t build a pipeline through Belgrade, you don’t lose anything.”

Mechele Cooper — 621-5663

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