Maine City, Scrap Recyclers Battle Over Relocating

The city of Portland, Maine is upping its call to relocate two scrap recycling facilities that have been operating in the city to other locations. The city has been eyeing the two yards as part of a district for redevelopment.

However, the two companies, New England Metal Recycling and E. Perry Iron & Metal Co., are contesting the more recent moves by the city.

In the most recent action, the city obtained permission by a Maine District Court judge to enter the two yards to perform environmental testing. However, both companies appealed the ruling, and a stay has been issued on the initial court ruling. “Our position is saying that you can’t condemn the yard for economic development,” said Peggy McGehee, an attorney representing New England Metal Recycling.

According to local press reports the move is the first step to assess the value of the land before taking it by eminent domain.

In earlier negotiations, the companies expressed a willingness to work with the city to find an alternative location in the Portland area. As part of the relocation efforts, assistance with permitting and moving expenses was expected by the city

However, according to McGehee, an attorney representing New England Metal Recycling, the city now seems to be more willing to condemn the property and not relocate the company.

Lawyers for the companies say the city has no right to enter the properties before actually initiating the land-taking and negotiating a fair price.

According to the Portland Press Herald, Marshall Tinkle, who represents E. Perry Iron & Metal, said the city has failed to cooperate with his client on the Lancaster Street site, which covers more than two acres. He said it's unusual for a property owner to allow potential buyers to test for contamination in the hope of lowering the selling price.

"It's a heavy-handed way of driving us out of the property," Tinkle said.

The decision to relocate the scrap yards follows a report the city put together four years ago. That report looked at the opportunity to redevelop the Bayside Development District, the location where both scrap facilities are located. According to the report, the two yards were "the single most inhibiting factor to the successful redevelopment of Bayside."

One advantage for New England Metal Recycling is a recent ruling by the city that the company would have as its business type a recycling center, rather than a junkyard, which it was previously listed as.

According to McGehee, junkyard are prohibited in the city, while recycling centers are allowed to operate in the city.

While the companies are still open to finding a new site, there are several issues that the companies are looking to resolve with the city. One large one, says McGehee, is the need to have the present ordinances tinkered with the allow the company to operate legally in any new location.