Fee Cut for Maine Hospital Alarms Some

NORRIDGEWOCK, Maine — A decision to lower application fees for a construction project by Redington-Fairview General Hospital in Norridgwock, Maine, has some concerned about legal challenges.

Code Enforcement Officer Frank Tracey recently told the media that the hospital board decided in October not to charge the hospital more than $12,000 in fees for the project in order to be more friendly to business.

However, commercial construction projects are subject to application fees based their value. For instance, projects under $500,000 are charged a 1 percent fee, with projects more than $500,000 charged a 2.5 percent rate, according to the town ordinance.

The hospital was initially assessed with a $5,000 application fee for a project costing $499,000. But when the hospital later submitted documents that indicated the cost of construction to be $699,000, the additional fees were not charged.

“We were actually doing what the site plan review ordinance had given us the authority to do, and that is decide to not charge more for that fee,” said Acting Planning Board Chairwoman Charlotte Curtis.

In a statement, Town Manager Michelle Flewelling said that although some of the wording in the ordinance is not clear she was “not aware of anything in the ordinance that gives the planning board flexibility with fees.”

Added Curtis, “We based the application fee on the initial estimate and the reason for that was that these people were fully prepared and had all their documentation in order when they came to us. The board felt this would be a wonderful addition to our community.”

The hospital bought the land late last year and was approved for construction by the planning board last January. The hospital has since renovated the building on the site and put in medical offices, which opened on Nov. 5.

Even though the hospital is a nonprofit organization, Flewelling said it is still subject to permit fees, even if it later applies for a tax exemption from property taxes.

“There is the concern that if nothing is done there is potential for litigation from other business applicants who have had to pay fees.”