Scrap Yard, City at Impasse Over Relocation

The city of Portland, Maine, which is attempting to redevelop a portion of the city, has found that one of two scrap yards that it was hoping to relocate to another part of the city is making it a more challenging endeavor.

When the city first approached the two scrap yards – New England Metal Recycling and E. Perry Iron & Metal – there was some interest. However, after getting New England Metal Recycling to purchase some land from the city in an industrial part of the city, the city has been unable, so far, to get E. Perry Iron & Metal to move to the location.

David Hirshon, an attorney representing E. Perry, points out that the city has passed a number of local ordinances aimed to pressure the scrap metal dealer into moving. At the same time, while the potential of an eminent domain move is always a possibility, the attorney says that the city has not mentioned this possibility.

New England Metal, meanwhile, has agreed to purchase around 13 acres out of a total parcel of around 53 acres that the city has for both scrap yards, as well as the city’s public works department.

Hirshon points out that the offers being paid to his client by the city of Portland create some unfair issues, including having E. Perry overpay for the site they want them to move to. Other concerns expressed include where on the land the new facility will be built, how much work will need to be done at the new site.

In place of the scrap yards, the city is hoping to receive around $100 million in redevelopment projects for the area, once the scrap yards are relocated.

The city has been looking to move the two scrap yards for the past six years. The decision followed a report, prepared in 2000, that noted that the scrap yards were “the single most inhibiting factor to the successful development of Bayside (the area that is hoping to be redeveloped.

According to local published reports, Portland officials say that the two companies would pay around $110,000 per acre at the new location. The price is the same amount the city paid to acquire the land.

However, Hirshon feels it unfair that a private company would have to pay the same amount when, in his opinion, the city overpaid for the land.