OTISFIELD — The Board of Selectmen has rebuffed a request by the Heniger Park Association to bring the disputed 99-year lease to mediation.
“I am personally done,” board Chairman Hal Ferguson said at Wednesday night’s meeting. Ferguson said he considered the tone of the request a “threat” after being told no one in the association is expected to sign the lease.
It is believed that only 60 percent of the 37 leaseholders — many of whom are nonresidents — belong to the association, Selectman Rick Micklon said.
Ferguson said he received an email from Patrick Casey, president of the association, Monday, requesting further changes to the 99-year lease and asking that mediation be conducted to resolve the contentious issues.
The Board of Selectmen agreed last month to make minor changes to Heniger Park land leases to clarify some of the terms for tenants and the town.
Of the 31 suggested changes to the lease submitted by legal counsel for the association last month, about half were accepted by selectmen. None change the approved financial terms.
When Casey appeared at a meeting this month with further concerns, the board agreed to look at several again — none regarding finances — but stressed the time was done for any further revisions.
Selectmen and members of the Heniger Park Reassessment Committee worked the past two years to increase lease fees to reflect what they say is fair market value for all Pleasant Lake camps — whether on leased land or not.
Heniger Park, the 100-acre parcel of mostly wooded land on the west shore of Pleasant Lake, was left to the town in 1943 by noted Broadway producer Jacob Heniger. His will stipulated that the Board of Selectmen decide what would be done with the real estate.
In 1965, the board drew up agreements allowing people to lease 37 lots for fees ranging from $0 to $50 per year for 50 years. Leaseholders were allowed to build camps, and most did, paying taxes on the full value of structures, but not on the leased land.
The leases expire between 2015 and 2032.
In June 2014, voters supported selectmen offering new agreements to 37 leaseholders. The new agreement grants 99-year leases if leaseholders agree to terminate their current 50-year contract in writing between Jan. 1 and April 30, 2015. The leases will be effective July 1, 2015, unless they are not signed.
Ferguson and fellow board members Micklon and Len Adler said they are ready to send the lease out next week after one more review by the town’s attorney and insurance company.
“I think it’s time to say enough’s enough. Take it or leave it,” Adler said.
Adler said the board has been “tinkering” with the document since June when annual town meeting voters agreed to the 99-year lease.
Board members reiterated Wednesday night that the lease will be reviewed every 10 years, something that leaseholders say they object to because it makes it difficult for financing purposes.
Board members said they want a 10-year review because history has shown that there have been “multiple” sales of the camps over the years without the board’s knowledge and other issues can surface when new owners take control without the town’s knowledge.
The current 50-year leases are calculated on an assessed value of $15,000 for back lots and $30,000 for lakefront lots, which is multiplied by the current tax rate. The lease fee of $0 to $50 is added on.
Under the new agreements, the value for lakefront lots is $213,000 and back lots is $44,340. Instead of multiplying the land value by the tax rate, a land capitalization rate of 2.2 percent is applied as the lease fee.
It is expected to increase taxes the town takes on the lots from $9,528 to $100,551 annually, based on the current tax rate.
Buildings on the lots are taxed at the rate of $12 per thousand dollars of assessed value.
Leaseholders have argued that the increase is unfair, in part, because they do not own the land, making it difficult for them to sell their camps.
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