A local business owner in Gardiner is seeking a significant tax break for a newly constructed facility that houses an extensive collection of antique cars. The proposal has sparked debate among residents and city officials, with some questioning the fairness of the arrangement while others highlight its potential economic benefits. The facility, owned by Peter Prescott, chairman of Everett J. Prescott, Inc., spans over 50,000 square feet and is valued at approximately $8 million. The company is requesting a return of $30,000 annually for a decade as part of a tax increment financing agreement. While the mayor believes this deal balances all interests, some taxpayers are skeptical about subsidizing what they view as a private luxury.

Economic Incentives and Community Impact

The proposed tax incentive aims to retain PEP Classic Cars and its workforce within Gardiner, potentially freeing up commercial space for other businesses. According to Mayor Patricia Hart, tax increment financing (TIF) agreements are one of the few tools available to the city to attract and retain businesses. Under the current proposal, PEP Classic Cars would pay around $84,000 in annual property taxes but seek a refund of $30,000 each year for ten years. This arrangement could generate approximately $2.2 million in taxes over the next three decades, providing new revenue streams for the city without increasing the overall tax burden on residents.

Supporters argue that the TIF agreement not only secures the presence of PEP Classic Cars but also shields the city from state valuation adjustments, which determine school funding and revenue sharing. By excluding the value of the new facility from the city's total valuation during the TIF period, more funds could flow into the community from state sources. Additionally, the facility’s construction and operation could stimulate local economic activity, benefiting other businesses and creating jobs. However, critics like former City Councilor George Trask question whether such a substantial investment should be made for a private collection, especially when many residents struggle to pay their own taxes.

Public Opinion and Future Prospects

The proposal has divided public opinion, with some residents expressing concerns over the allocation of tax dollars to support a private venture. George Trask, a vocal critic, emphasizes that if someone can afford to build a facility for antique cars, they should also be able to pay the associated taxes. Despite these reservations, Trask acknowledges that the latest deal, which offers a fixed payment rather than a percentage refund, represents a better compromise. The city council will review the application and possibly vote on it at an upcoming meeting, allowing members of the public to voice their opinions.

Peter Prescott, the owner of the collection, has previously engaged with local and national media regarding his impressive array of vehicles. When approached by CBS13 I-Team, Prescott initially agreed to an interview but later withdrew due to community backlash. The latest proposal does not mention charity events or increased public access, leaving these aspects uncertain. Ultimately, the decision rests with the city council, who must weigh the potential economic benefits against the concerns of taxpayers. The outcome will have lasting implications for both the business and the broader community.