New state law bolsters workforce housing; will Northeast Harbor be litigated block by block?

OTHER NEWS: Hotel applicant failed to disclose loss of rental permit; League of towns asks Mills for solutions to waste management; Could Maui-like fire happen here?

NORTHEAST HARBOR, Aug. 12, 2023 - “All the NIMBY horses and all the NIMBY men could not put Xanadu back again.”

The half percenters here may huff and puff all they want and hire lawyers to slow the inevitable. But 10 years from now the village will likely be self-corrected to a more diverse populace - age-wise, wealth-wise and calendar-wise.

With any luck, we may actually have snowball fights once again on Main Street and increased enrollment in our school.

The Force is not with the few, elitist summer residents opposing workforce housing in the village.

A sweeping state housing law, LD 2003, which went into full effect July 1, is making certain of that.

Among other things, the law forbids any Maine town from enacting single-family-only zoning. You may now add another house or wing on your lot as long as you have sewer service. That has the potential to reshape the housing stock in Bar Harbor, Northeast Harbor and Southwest Harbor.

One section allows a developer to build 2.5 times the number of units under current local rules for a development designated as affordable.

It also encourages more than one accessory unit - like a “grandmother’s cottage” - per lot and rewards municipalities seeking to promote workforce housing by allowing more “bonus density.”

Maine Superior Court judges will no doubt read these new laws in their journals and be sensitized to the sentiment of the electorate.

So it’s an uphill fight for those who want to beat against the current of policy driven by real life needs as opposed to the blurred lens of a race horse owner or a Palm Beach socialite who happens to use Maine for a few weeks of stopover to escape the humidity of the 33480 zip code.

If your main concern is whether you’ll make the start time for the one-class race, you’re not likely to see the homeless sleeping in their cars in Bar Harbor or the growing encampments in the parking lot at Walmart in Ellsworth.

Police Chief David Kerns said officers take into account the “totality of the situation” after rousing folks sleeping in their cars, sometimes allowing them to complete their slumber.

Most municipalities still have not fully digested LD 2003 or even discussed it. It did not appear in the so-called “MDI Housing Solutions Summit” report organized by a consultant whose recommendations to attendants - nine out of 12 - were to hire a consultant. (So much for that summit - more of a feel-good exercise than a solution.)

Bar Harbor Town Planner Michele Gagnon has plans to engage the Town Council on the implications of LD 2003 when she presents her update on the housing crisis Sept. 5. Mount Desert long ago beat the state to the punch by relaxing density requirement in the village to allow for workforce housing and to allow auxiliary dwelling units.

The application for six workforce housing in the village opposed by a scrum of summer folks is exactly the type of project which inspired the new state law.

All eyes are on the Planning Board to see if it has the fortitude to follow through with citizens’ wishes or bow to the altar of the moneyed elite.

Bar Harbor has made the greatest strides on the island to combat the housing crisis.

Its “shared accommodations” ordinance to relax code to allow for dormitory style housing has resulted in more than 150 such units in the pipeline. That edifice at the entrance to town at Mount Desert and Kebo streets is not a new hotel but a dormitory which will house 84 employees of Witham Family Hotels, which is building housing for another 16 employees on its Atlantic Oceanside Hotel on Eden Street.

Islander Photo

Theoretically, the beneficiaries of this zoning change will return their staff housing to the year-round housing stock. We’ll see if that happens.

In 2019, shortly after Gagnon started as the new planner, a survey of housing stock used for employee housing in Bar Harbor by 58 employers revealed that they tallied:
- 88 Buildings.
- 44 Single Family Homes.
- 241 Individual Apartments.

No doubt, four years later, those numbers are significantly higher. Still, the 150 units with more to come are an impressive bite of the apple.

Bar Harbor’s vacation rental moratorium also is starting to take hold.

Almost 9 percent of housing permitted for rentals of at least four nights and which are not owner-occupied (VR2) did not renew by May 31, either because the owners forgot or because some who registered decided not to rent their units after all. VR2 are now down to 485, from 527 in 2022. In June the QSJ published this account of the early success of the vacation rental initiative.

Bar Harbor has the biggest potential on MDI to benefit from LD 2003, but Maine still has a high hill to climb despite being one of three states which now ban single-family-only zoning, joining Oregon and California.

One other state with a similar profile, Montana, with tourist galore at two national parks, Glacier and Yellowstone, and a half dozen national forests, billionaires in ranches and a imbedded workforce feeling squeezed out of the largesse, is actually making noise as what The Atlantic proclaimed as the first state which may solve the housing crisis.

A Republican state, Montana has transformed its land-use policies to allow for dense development. It did this on a bipartisan basis and at warp speed.

“Housing prices have just been out of control,” said Republican Governor Greg Gianforte.

The Atlantic reported, “Millions of families are stuck in apartments they do not want to live in, paying prices they cannot afford. Eventually, many decamp for low-cost, low-wage regions of the country.

“Gianforte said that the answer was obvious to him: Montana had a supply crisis. It needed a supply solution. His task force soon figured out how to get Montana more housing: Make it possible for folks to build housing units by right, rather than having every development go through a miserable, expensive process of negotiation.”

Flash forward to the Mount Desert Planning Board meeting this week for a poster child of a “miserable, expensive process of negotiation.”

Montana already had pretty loose building regulations, The Atlantic reported, and legislators loosened them even further—functionally banning single-family zoning and preventing towns and cities from adding onerous zoning policies, among many other changes and investments.

Montana now arguably has the most pro-development, pro-housing set of policies of any state.

In Bar Harbor, planner Gagnon knows she has a big challenge and opportunity, even though the tribal tendencies Maine towns often get in the way of real solutions. For instance, Ellsworth is already ahead of any town on MDI in adding housing. But that creates more traffic on Rt. 3, as workers commute to jobs on the island.

Gagnon has started collaborating with other “gateway” communities - Ellsworth, Trenton. Lamoine has joined some of the talks. The issues of housing, transportation, health care are regional. They require regional solutions.

Heard it through the grapevine …

Billionaire Mitchell Rales is an investor in Tim Harrington’s purchase and impending remake of the Asticou Inn, according to sources. Rales has invested in other enterprises in the area, including the Islesford Dock restaurant He is the major impetus behind the non-profit Mount Desert 365, which is the applicant for the workforce housing project opposed by summer residents. MD 365 has three other parcels nearby with the potential for 20 more workforce housing units.

SPECIAL REPORT: Why did hotel applicant not disclose loss of permit?

BAR HARBOR - The applicant seeking a permit to convert four vacation rental units to a motel or hotel did not disclose it no longer is permitted to operate those rentals by the town, despite contrary representation by its agent, former planning chair Tom St. Germain.

Destination Health LLC at 124 Cottage St. failed to renew its VR2 permit by the May 31 deadline, according to records obtained by the QSJ.

St. Germain wrote in an email July 26 to Planning Director Michele Gagnon that “the applicant intends to change from one permitted use in Downtown Village 2, to another permitted use in that district.” In fact, the applicant did not possess a permit on that date.

St. Germain’s assertion was the basis for a 4-1 vote by the board to grant his request to vet the application without a public hearing. Two board members confirmed this week they were not aware of the permit lapse when they discussed the application.

Board secretary Elissa Chesler said had she known, she would have had more questions “about the true intent of the application.”

The purpose of the vacation rental ordinance passed by voters in November 2021 was to place a cap on new permits and allow existing permits to remain fallow, if not renewed, until vacation rentals declined to 9 percent of the town’s housing stock. A total of 42 permits, or 9 percent of all VR2, were not renewed by the May 31 deadline, including four by Destination Health.

VR2 is a class of rentals which requires a four-night minimum. VR1 has a two-night minimum and must be owner-occupied.

St. Germain and board member Joseph Cough voted against the vacation rental ordinance in the fall of 2021. That November, citizens voted overwhelmingly 1,260-840 to approve the ordinance.

At the Aug. 2 meeting, the owner said the new hotel or motel would operate “exactly the same as how we're operating now” in a present tense as if she is currently renting rooms which would be a violation of operating without a permit.

Only new member, Cosmo Nims, expressed concern whether the change was as seamless as the applicant represented. He voted against the motion to skip the public hearing.

The planning board’s public discussion, including comments by Gagnon, was based on the assumption that the property was being operated as a permitted VR2.

If allowed to change to motel or hotel, Destination Health would essentially end run the purpose of the ordinance to bring down the number of short-term housing and to encourage that housing units be rented out for long-term renters.

Did the owner forget to renew and now wants the town to bail her out? The town has been consistent in rejecting requests for renewal after the deadline.

If allowed, why wouldn’t every VR2 in a transient lodging zone be given the same opportunity to become hotels and to be able to rent single nights and not pay the annual VR2 registration fee of $275? Could they all hire St. Germaine to weigh in with his influence on the board?

This is a much larger public policy question than just one application. It has the potential of undermining the entire vacation rental ordinance.

If the town didn’t think multi-night rentals were different from single-night transients, why did it imposed a four-night minimum on VR2?

St. Germain and Cough began separate real estate developments while as sitting members of the planning board - St. Germain, a 44-room “bed and breakfast” on Cottage Street, and Cough, a subdivision in Hulls Cove.

St. Germain helped give birth to the idea of building hotel-like B&Bs which do not require planning board approval.

The QSJ placed two calls to the owner of Destination Health but did not get a reply.

St. Germain wrote a comment on this post after publication to state that the permitted use is “dwelling unit” not a licensed vacation rental. Still unanswered is whether the owner has been renting the unit without a vacation rental permit, or license, whichever St. Germain wishes to call it.

Acadia area towns ask governor for help on regional waste disposal

MOUNT DESERT - The League of Towns, consisting of Bar Harbor, Cranberry Isles, Ellsworth, Lamoine, Mount Desert, Southwest Harbor, Swans Island, Tremont, Trenton and Acadia National Park, is asking Gov. Janet Mills for a statewide solution to regional waste disposal challenges wrought by the loss of the incinerator plant in Orrington and the restarting of the Hampden waste-to-energy plant two years away.

MD Town Manager Durlin Lunt, league chair, wrote,

“Solid waste disposal is an issue that is now beyond the capacity to be resolved solely at the local level, therefore we urge that the State of Maine become more active in partnering with organizations such as the Acadia Area League of Towns to craft a viable Statewide program to address this problem before it reaches critical mass.”

Garbage from all the towns are now trucked to landfills, the lowest priority on the waste management hierarchy, except for a sprinkling of recycling.

The Orrington plant was foreclosed earlier this year and is scheduled for a public auction Aug. 29 after two postponements. The Hamden plant has a new owner and operator but will take 18 months to two years to reach full operations. And even then it’s still considered experimental as it has never completed a full year of operation successfully.

Lunt stated that the impending loss of the incinerator plant, the limited lifetimes of area landfills, the high costs of recycling, “coupled with the possible opening of the Municipal Review Committee facility in Hampden delayed until at least 2025 has placed our communities at risk of not having a viable solid waste disposal option in the very near future.”

“Such short term state efforts could include but not be limited to, identifying, and siting new landfill facilities at geographically strategic locations around Maine pending more environmentally friendly permanent solutions.”

Lunt said he is awaiting a response from the governor.

Could a Maui-like fire engulf MDI?

The 1947 fire which destroyed Bar Harbor and the fire which destroyed historic towns in Maui this week shared one characteristic - gale force winds or higher. October is the peak month for high winds locally.

The lesson from 1947 is to take every small fire seriously. The fire was first reported in cranberry bogs in Hulls Cove on Oct. 17, 1947 and smoldered for four days before gale force winds on Oct. 21 turned it into a raging inferno.

In October 2021 I wrote this article on how a well-known timber expert believes another large-scale fire on MDI may be overdue.

TRIBUTE: Lucy Haynes

Lucy Haynes, 83, went to be with many of her family members on August 5, 2023. She was born on February 12, 1940, to Mabel Russell in Richmond, Maine. Lucy grew up on Swans Island and Mount Desert Island, graduating from Mount Desert High School in 1958. She married Dana R. Haynes a couple of weeks later, and they were lifetime partners until his passing in 2021.

Lucy and Dana worked side-by-side running Haynes Garage until her retirement at age 80. Their marriage of 63 years was filled with hard work, short vacations, weekends at camp on Long Pond, and time on the ocean. Her life was rich with friends and family. In her younger years, she was a dedicated member of the United Church of Christ and the Church Guild in Northeast Harbor.

Lucy was the epitome of a dedicated wife and partner; her world revolved around Dana and her family. Together they spent a lot of time with great friends, creating fond memories during boating adventures and while hosting some legendary parties. She loved decorating for holidays. She enjoyed watching birds in her yard, loons on the pond, reading, and watching Hallmark movies. Lucy was an honest and simple lady. She didn’t have to be anything else.

She is survived by three children: son Daniel Haynes and wife, Becky; daughter and best friend Wendy Littlefield and husband, John, all of Northeast Harbor; son Stephen Tracy and wife, Darlene, of Hubert, North Carolina. Nana also leaves behind grandchildren: J. Dana Haynes, Jr.; Richard M. Haynes II and wife, Sarah; Megan Leddy and husband, Matt; Dara Beck and husband, Sean; Ryan Littlefield and girlfriend, Carley Sevene; and Haley Littlefield. She will be missed by great-grandchildren: Kaya, Rowan and Freya Haynes; Kellum Beck; and Madeleine Ashleigh Littlefield. She is also survived by her siblings: Caroline Dunbar, Janice Kincaid, Aggie Gazaway, Lenny Russell, Charlie Dillon, Joe Dillon, and Don Russell. Her friendships with Norma Vollmer and Joan Russell were very special to her.

Lucy was greeted in heaven by her mother, loving husband Dana, son Jeffrey Dana Haynes, Sr., granddaughter Ashleigh Margaret Littlefield, and many dear friends. The family would like to thank Dr. Patty Wyshak for her support, and Mary Grace from Cahoon Care for her help these past two years.
A service of remembrance will be held at 1pm, Fri. August 11, 2023, at Forrest Hill Cemetery, Northeast Harbor.

In Lieu of flowers, donations may be made in memory of Lucy to: The Neighborhood House, Ashleigh Margaret Littlefield Camp Scholarship Fund, PO Box 332, Northeast Harbor, ME 04662.

TRIBUTE: Sandra Holmes Modeen

OTTER CREEK - Sandra Holmes Modeen, 86, passed away on Friday August 4th, 2023, after a period of declining health. She was born in Otter Creek on July 8th, 1937, the first child of Bernard and Alice (Buzzell) Holmes. She attended elementary school in Otter Creek and graduated from Mount Desert High School in 1955.

Sandra married William Modeen shortly after graduating and spent the next twenty-five years raising her two boys, Bill, and Mike, much on her own working multiple jobs while receiving support from neighbors and family. Life wasn’t always easy, but she never lost her positive outlook, personal generosity, and her dry sense of humor.

Sandra is survived by her sons, William, his wife Pamela, and Michael Modeen. Grandchildren, twins Olivia and Coady; Max and his wife Christiana from Boise, ID. A sister Bernadette Moulton, and husband Paul of GA and her brother Terrance Holmes, his wife Wenke of NH. Nieces, Kelly of Georgia, Heidi, Katrine, and Britt all of NH. Sandra was predeceased by her parents, former husband William Modeen, brothers George and Douglas Holmes, a nephew Christopher Moulton, and a grandson Joshua McInvale.

The family would like to especially recognize the love and support of Sandra’s former daughter-in-law and nurse Melanie Clausen, and nurses Marlene Davis and Bette Mitchell who provided such wonderful care.

A memorial service will be held on 11am, Friday, August 18, 2023, at the Otter Creek Cemetery, Otter Creek.

Memorial contributions can be sent to the Otter Creek Cemetery Association, 51 Otter Creek Drive, Otter Creek, 04660 or the Mount Desert Nurses Association, P.O. Box 397, Northeast Harbor, 04662.

Arrangements by Jordan-Fernald Funeral Homes, 1139 Main St. Mt. Desert.

Condolences may be expressed online at www.jordanfernald.com