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March 24, 2011

Court dismisses Brunswick TIF suit

A court justice has dismissed a lawsuit filed by Brunswick hotel owners against a tax-increment financing agreement the town approved for a new inn.

Last April, three people -- Peter Anastos, owner of the Marriott Fairfield Inn and Suites, Linwood Austin, owner of the Comfort Inn, and former town councilor Karen Klatt -- filed the suit against the town and JHR Development, which is building a 54-room inn downtown. The plaintiffs argued the town did not adequately consider the negative impact the TIF and a credit enhancement agreement of nearly $1 million would have on existing hotels. But Cumberland County Superior Court Justice Nancy Mills last week dismissed the suit and said the town properly weighed the benefits, including job creation and downtown development, against negative effects, according to The Forecaster. Mills also dismissed other portions of the lawsuit related to the town's process for approving the TIF. Anastos told the paper he is not done fighting the TIF agreement, but did not specify his future action.

In June, the court dismissed a separate lawsuit filed by Anastos in an effort to gain access to a study the town used to approve the agreement.

Brunswick officials last March approved the TIF for Massachusetts-based JHR Development. The tax enhancement agreement refunds 100% of the taxes paid on the inn in the first five years, then refunds 50% over another five years, equaling $907,000. The inn, part of Maine Street Station, is currently under construction.

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