MDI Lobster gets $400,000 grant to repair dock; town mulls aid for working waterfront
Charlotte Gill named to Planning Board; police makes 'conditional' hire
SOUTHWEST HARBOR, Sept. 12, 2024 - One of the most valuable commercial parcels on this side of the island - albeit one with a checkered past - is in play.
Tuesday night the select board attempted to size up whether there is an opportunity for any municipal role in the future of 126 Clark Point Road, better known as MDI Lobster.
In a town with a shrinking working waterfront, select chair Carolyn Ball teed up the possibility that the property could continue as a commercial wharf, with either assistance from the town or through the state’s Lands for Maine’s Future program.
The impetus, Ball said, was the recent news that the owner of the wharf, Sheryl Harper received a $400,000 FEMA grant to repair the dock damaged by last winer’s storms.
The reaction was tepid.
Harbor Committee Chair Nicholas Madeira and member John Stanley said any new funding would be better spent to upgrade the town’s three existing waterfront assets - the upper and lower town docks and the Manset dock.
They also said they preferred MDI Lobster remain a revenue-generating property for the town. According to the latest property tax records, MDI Lobster is assessed at $2,676,200 with an annual tax bill of $24,139.
The commercial wharf was a major wholesale operator in Maine for decades. (I bought my first lobsters off of a boat on that dock.)
In 2019, new tenants of the property decided to open a restaurant, and MDI Lobster began a sordid chapter replete with lawsuits, unpaid bills and friction with neighbors.
The Planning Board approved the restaurant in September 2020 but with conditions to mollify neighbors concerned with noise, parking, lighting and capacity.
That lasted a year.
In October 2021, the town took MDI Lobster to court for violations of those conditions.
Unbeknownst to town officials, MDI Lobster owners Nicholas Sayre and Joseph DeBeck apparently had an agreement with a New Jersey lender which required payments above a certain revenue.
On March 15, 2021, Spark funding LLC, doing business as Fundamental Capital, sued MDI lobster, Sayres and DeBeck in Rockland County, NJ, for failure to pay $1 million in receivables, as part of an agreement whereas MDI promised to turn over all revenues after $283,890 in sales, according to the court filing. “The Seller sold $397,446 of future receivables,” the plaintiffs asserted.
Then, Pearl Delta Funding LLC sued MDI Lobster Aug. 21, 2020 in Nassau County, NY, claiming breach of contract.
Despite such history, the select board, on a motion by then member George Jellison approved MDI Lobster’s license for beer and wine on May 12, 2023. When the town clerk informed the board that the applicant was using a separate entity, “Sayre DeBeck Holdings” for the license, member Carolyn Ball asked if the board should delay the approval. She was rebuffed.
MDI Lobster closed its business in December 2023. The local fishermen were sent checks which bounced.
Some were owed thousands.
Owner Sheryl Harper was also left with a damaged asset.
Tuesday night she said she is considering all options.
Her $400,000 FEMA grant requires matching funds. John Stanley pointed out it’s a $800,000 project to repair the dock.
Harper made it clear she was charting her own path, even though she is open to hearing proposals from the town.
“I plan on redoing the dock, the whole dock. I don't know if there will be a building … that will depend, and probably not a two-story building.
“I wasn't counting on the town purchasing it. I've just been approached by people suggesting it. So that's why I'm here. I was going to do what I was going to do with it, which I'm not really sure yet.
“We've been here before. I think the town had an opportunity to buy it years ago, and they didn't really want to do it.
“I'm just here to listen if there is any people that are interested that now is a good time while rebuilding is going on to get things a certain way, if need be.”
Madeira said, “I think the biggest concern is the cost of the infrastructure, where we have three facilities now that we're not maintaining very well. So any any monies that were available, we'd recommend putting into lower town dock - bathrooms, floats, docks.
He said the harbor committee will propose shoring up the Manset property as part of the reconstruction of Shore Road.
“Funds and grants could be well applied to that.”
Madeira said MDI Lobster is a “nice property. There's certainly potential for somebody.”
Speaking for the harbor committee, Madeira said its recommendation is “not to get into another cash cow that we just cannot afford.”
He cited a survey which showed the town with only 50 fishing permit users, not even reaching a 50-permit capacity.
You may listen to the town’s audio recording of the discussion starting at Hour 1:03.
In 2022, Southwest Harbor brought in $11.2 million in total lobster catch, making it the seventh top-grossing port in the state for the third year in a row. That was down from the record year in 2021 when it reported $20.7 million.
Gill named to Planning Board
Charlotte Gill, owner of Charlotte’s Legendary Lobster Pound in Seawall, was approved unanimously Tuesday night by the select board to fill a vacancy on the Planning Board to June 2028. She became a local hero of sorts as a driving force behind the effort to repair Seawall Road, which connects the town to Acadia National Park’s campground and trails.
According to the town website, other members are:
Eric Davis, Chair (2028)
Lee Worcester, Vice Chair (2026)
John Williams (2026)
Priscilla Ksionzyk (2029)
Michael S. Levesque (2029)
Joel Wolak (2028)
Police chief makes ‘conditional’ hire
Chief John Hall said he has made a conditional offer to a potential candidate and is in the background investigation phase for that person.
That would bring to four the number of officers patrolling Southwest Harbor and Tremont. One of the officers is on leave attending the police academy. He is expected back in December.
In January another officer leaves for the academy for 18 weeks. The new hire will also need to attend the academy at some pint, Hall said.