Deal Nearing for Relocating Scrap Yards

The city of Portland, Maine, is close to making an official deal to relocate two scrap yards from the Bayside area of the city to another location in the town. The city has been working to redevelop the area where the two scrap yards are located as it seeks to continue its redevelopment of the area to a commercial and residential area.

The two companies, E. Perry Iron & Metal and New England Metal Recycling, have been in various stages of negotiations with the city over moving from the Bayside region of the city to an industrial area of the city, one zoned for industrial operations.

People at both companies contacted have given conflicting outlooks on the decision. New England Metal Recycling, owned by Schnitzer Steel, has much of the relocation agreement worked out, according to a source at the company. “We are working on it right now,” the spokesman added. The facility is a scrap yard focused on handling various types of ferrous scrap.

A spokesman for E. Perry, however, says that while the new location being offered is acceptable, he feels that the financial component makes it more difficult to make the move. E. Perry, which primarily handles nonferrous scrap, operates on about three acres of land. With the new location, the company initially was offered 10 acres of land, although that number is not confirmed.

More disconcerting for E. Perry is the fact that the additional costs required to open at the new location would building warehouse space and other costs that the company feels it would absorb through moving to a new location.

According to local press reports, city officials have negotiated a $5 million deal on a Riverside Street parcel that would lead to removal of two scrap-metal yards from the Bayside neighborhood, allowing the district to continue its transformation into a commercial and residential center.

The city hopes to have both scrap yards relocated within 18 months.

The pending agreement requires City Council approval. A full vote on the agreement is expected to be made next month.

The city would pay off the $5 million debt within three years, Gray said. It would raise $1.5 million by selling 10 to 13 acres of the Riverside land to the scrap yards, according to the Press Herald.

City officials said the land on Riverside Street would be ideal for the scrap yards and public works operations because it's in an industrial area on the outskirts of Portland and it's close to the turnpike.