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August 26, 2010

Town reverses decision on cannery grant

In a reversal of a previous decision, selectmen in Gouldsboro have decided to support a $400,000 federal grant to for a planned lobster processing facility at a former sardine cannery.

The board agreed to sign a letter of intent to apply for the Community Development Block Grant that will help Massachusetts-based Live Lobster Co. revive the former Stinson Seafood cannery in the town's village of Prospect Harbor, according to Maine Public Broadcasting Network. Just last week, selectmen voted against supporting the grant, saying it would end up subsidizing competition for lobster distributors already operating in the area. They stressed, however, that they needed more information about Live Lobster's plan and financial status before formally applying for the grant, according to the Bangor Daily News.

Earlier this month, the Chelsea, Mass.-based company announced it was buying the shuttered cannery from Bumble Bee Foods LLC. However, a federal court in Boston has placed an injunction on the company that would allow the court to cancel any purchase agreement made by the company. The injunction is related to a pending unfair termination lawsuit filed against the company by a former general manager and current minority shareholder.

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Go to the article from the Bangor Daily News >>

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