LOBSTER PLAN PLANS SHIFTING continued from Home Page

Gouldsboro Selectmen, September 20, right to left, Jim Watson, Bill Thayer, and Dana Rice. Having signed a confidentiality agreement selectmen could not publicly discuss the financial information Live Lobster had submitted. The selectmen were also expecting to see a Live Lobster business plan and other documents that were not submitted. Brenda Tredwell Photo

Martin suggested that if Antonio Bussone of Live Lobster signed an agreement to return the $400,000 to Gouldsboro, if the proposed processing venture failed to meet the goals of the grant requirement, Gouldsboro could return the money to the DECD. Gouldsboro’s selectmen were uncomfortable about taking that risk without more information from Bussone. If it would take 5 million pounds of lobster for the plant to break even, it would require access to considerable working capital, and a major line of credit.

There were questions from townspeople. Jerry Cronin said he “wanted evidence that Bussone could tap a $ 15 to $30 million line of credit.” Bussone replied, “No. That’s way above our capacity,“ but maintained confidence in his ability to make the processing venture successful, while satisfying requirements set forth by Department of Development.

While Bussone thought his processing plant would elevate the price paid lobstermen for lobster, Cronin thought that the higher price would push Bussone’s break-even point higher to 7 million pounds of lobster – not 5 million. Last year, Bussone said he sold 5 million pounds of lobster to three Canadian processing plants. He’d like to see that lobster processed in Prospect Harbor instead. Murray Joy told Bussone, “You would need $ 20 million every 60 days (to run a large scale processing operation) – what kind of financing do you have?”

Bussone explained, “Competi-tion is a fundamental part of our economy. Our interest in the facility is very strong.” In addition to processing, other businesses might operate from the site. Bussone said, “A trucking company, for sure, and a garage to fix trucks. CDL driver training.” He said he would use part of the building as a freezer – for lobster and bait, possibly renting (freezer) space to the blueberry business. In Massachusetts, Live Lobster has a packaging company with two facilities, one in Chelsea, and another in East Boston.

Antonio Bussone, Live Lobster Co. at the September 20 selectmen’s meeting in Gouldsboro. “Our interest in the facility is very strong. In addition to processing, other businesses might operate from the site,” said Bussone. Brenda Tredwell Photo

Selectman Bill Thayer said, “We have not seen a business plan, we have not seen financial records…what I have seen…I can’t tell you, because of the confidentiality agreement…that’s what’s bothering me.”

Selectman James Watson explained, “I knew this wasn’t going to be a cut and dried thing. I’m disappointed the Governor’s office wasn’t forthcoming with information that would have been helpful in this process. The (initial) deadline was extended. To be honest with you, I’m still waiting for the information we asked for…we have not received the information I needed…to base a decision on. I really wish we had more information. There is still time. These grants are still available in February. This is not a closed deal,” said Watson. “There is still a window of opportunity for this thing to happen.”

Jim Nimon of Governor Baldacci’s office said Bussone presented “A pretty extensive narrative for the vision he has for the processing plant.” Nimon added that last April “there were four potential buyers, three were primary suitors, but it was Bussone who stepped up to the plate and made an offer. The Governor’s office acted as brokers to keep folks’ feet to the fire.”

Selectman Bill Thayer said, “I need (to see) a business plan, and profits and losses statements.” Thayer said lobster processing is “an ideal use” for the former Stinson site, but concluded that, “We don’t have enough information to make a decision on the CDB grant.”

Gouldsboro selectmen (two abstained from voting) agreed not to pursue the grant at this time. Bussone was disappointed, but not defeated by the decision. Immediately after the meeting, he said he plans to move forward, “It will just take longer.”