Contract losses could leave Loring short on revenue
Layoffs and cutbacks at the Maine Military Authority, which repairs and rebuilds military vehicles for the National Guard in Augusta and at a Limestone location in the former Loring Air Force Base, are expected to leave the agency in charge of redeveloping the former base short by around $460,000 in annual revenue.
The Aroostook Republican and News reported that in addition to the layoffs that took effect Oct. 11, Maine Military Authority is expected to turn back seven buildings to the redevelopment authority, which will drop anticipated lease revenue by $308,000 annually. Loring Development Authority officials expect they will lose another $152,000 from the Loring Job Increment Financing Fund as a result of the 140 layoffs at the company. The cutbacks are due to the company's loss of a contracts for equipment maintenance and rebuilding with the National Guard Bureau, the paper reported.
Tim Corbett, CEO of the Maine Military Authority, told LDA officials during an Oct. 23 board meeting that his company is pursuing an alternative line of business to rebuild transit buses, but the program is in a pilot phase.
LDA President and CEO Carl Flora told the redevelopment authority’s board that total funding losses for 2014 could total $531,000. Flora said the preferred way to make up the shortfall would be by attracting new tenants to the former base, but other options include restructuring the redevelopment authority’s staff, altering its fire department and emergency services agreement, seeking financial assistance from the state or attempting to transfer the property to one or more of neighboring communities.
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