Most of the responses to the news that the Sibley Mill would be sold were positive. What people fail to understand is that the transaction is frothing with controversy.
The Canal Authority entered into a 75-year ground lease with Cape Augusta in anticipation of a data center construction and mill property redevelopment. Not only did none of that materialize, Cape Augusta failed to perform on the most basic terms of the lease, resulting in the Canal Authority having to file suit earlier this year.
It is very bad news that the Canal Authority is selling the mill, which is their largest and, arguably, most important asset. They are selling the property without putting it out to the public for bid or solicitation. The mill produces hydro power; or at least it did before Cape Augusta neglected the property, allowing it to fall into disrepair.
There are other buyers/developers for the property.
The Augusta Press has obtained documents proving that the Canal Authority has been presented with alternative buyers at what would likely be a higher sales price. Records show that the Canal Authority was also presented with alternative offers for the King Mill, which they refused to consider in favor of Cape Augusta.
Wayne Millar, the owner of Cape Augusta, has wielded his political influence behind the scenes to manipulate the situation. He was allowed to acquire the King Mill despite other buyers with better offers, and now he is going to be able to buy the Sibley Mill for what will likely be pennies on the dollar. The Canal Authority bending to his will is not only bad for the Sibley Mill’s future, it’s bad for Augusta.
The Canal Authority released the a statement on Aug 28 saying, “The Authority has confidence in the company’s ability to redevelop Sibley Mill into a first-class residential and commercial community, similar to King Mill.”
If that is true, why did the Canal Authority file suit for Cape Augusta’s failure to abide by the lease terms. Now that everything is public, they have a newfound confidence in Millar’s ability to make the project successful. It’s pretty easy to successfully develop real estate when you can manipulate the process to buy it for pennies on the dollar and you have the government in your back pocket.
The Canal Authority’s lawsuit alleged that Millar let the property fall into disrepair, making it impossible for them to generate hydro power, one of the most important aspects of the property. The ability to produce hydro power makes the property very valuable.
Previous mediation failed to resolve the lawsuit.
“We spent eight hours trying to come to a compromise, but they are just not willing to mediate on anything. They haven’t had to pay a dime in rent, and they are neglecting the building,” Canal Authority Chairman Richard Isdell said.
If Millar is allowed to purchase the property for less than $10 million, he will have effectively stolen it from the Canal Authority. If that happens, there should be public outrage about how the process was handled and steps taken to prevent this type of travesty from occurring again.
