Cost of warehouse fire far-reaching

PARIS — It took nearly 100 hours, but by midday Sunday, the fire at the NEPW Logistics warehouse, on Pine Street, in Paris, was declared officially snuffed.

Now comes the hard part.

Paris Fire Chief Brad Frost says the four-day fire will prove costly to his department.  On Monday, he was still trying to calculate the cost, although some aspects were beginning to come into focus.

Although only two people joined Frost on scene in the first 10 minutes — including a driver and one firefighter not-yet certified to wear an air pack — all 29 people on the Paris fire roster eventually logged time at the Pine Street scene.

Some put in more than 60 hours.  A handful, including Frost and Deputy Chief John Longley put in 20-hour shifts before taking a break.

Although called volunteers, because they hold other full-time jobs, Paris firefighters actually are paid for their time spent on emergency calls and regular training hours.  The rate of pay runs from $10 to $12 an hour.

On Monday, Frost said last week’s warehouse fire will cost about $12,000 from his annual $70,000 budget for wages.

Darrell Rugg, who has assisted Frost with some of the department paperwork, says Paris will pay out more in wages for the four-day event than it usually spends in two months.

And the work doesn’t end there, Frost said.  Firefighters still have several days of cleanup ahead of them, not the least of which is returning equipment belonging to other towns and getting back items lost on scene — a hazard of running an operation involving 53 different towns.

Frost said he also depleted his diesel account, due to having to run his fire engines almost nonstop throughout the event.

Between wages, fuel and other costs not yet calculated, including food and beverage costs, Frost said over the weekend that it is likely he will deplete his budget before the end of the fiscal year, June 30.

If it comes to that, he said, Paris may have to hold a special town meeting to draw on its undesignated reserve accounts.

No jobs lost in warehouse fire, company will rebuild

PARIS — The owner of NEPW Logistics, which last week suffered one of the most dramatic and far-reaching fires in state history — involving nearly 200 firefighters from 53 towns over four days — says no workers will lose their jobs as a result of the devastation.

Drew Gilman, of Cape Elizabeth, is one of three owners of the warehousing and transportation company, which takes in pulp by rail from Canada and distributes it on demand, as needed, to paper mills across Maine. 

The company was founded as New England Public Warehouse in 1988, using a 187,000-square-foot building once occupied by the A. C. Lawrence tannery.  Since then, the facility has expanded to 233,000-square-feet and six additional locations. 

Gilman bought the company in 2002 and, the next year, changed its name to NEPW Logistics.  Despite the company’s growth, Gilman says Paris remains vital to its operations, thanks to a spur of the St. Lawrence and Atlantic rail line that can handle 11 rail cars at a time, 22 per day, each loaded to the brim with 500-pound squares of pulp the size of a hay bale.

Paper mills generally keep no more than a 30-day supply of pulp on hand at any one time.  The issue they face, Gilman says, is that product from the Canadian plants does not flow at a steady rate.  It comes out in spurts, necessitating the need to warehouse product.

That product he says, is easily worth “millions” of dollars. 

“In fact, even before the fire, what was in the building was more valuable than the building itself,” he says.

It’s too soon to put a dollar figure on the loss, says Gilman, who’s been sequestered away, nearly nonstop, with agents from for different insurance companies.

However, Gilman is clear on two points. 

First, despite early assumptions, his Paris employees were not put out of work by the fire.

“Our business goes 24/7 and everyone is still at work,” said Gilman, Tuesday.  “We are working full throttle.”

Seven office employees are now working out of NEPW’s Mechanic Falls site, where phone and internet line already have been transferred.  The 22 warehouse employees have been shifted to a variety of functions, from continuing work at new, leased locations, performing inventory checks to determine how much of the Paris material is salvageable, and giving tours to insurance reps.

“We’re definitely not laying anyone off,” says Gilman.  “I wouldn’t do that to people at this time of year, anyway.”

Gilman says that, in the short term, he has leased warehouse space in Oxford from John Schiavi and in Auburn from Safe Handling.  Product will be hauled from the rail lines using NEPW’s fleet of 40 tractor-trailor trucks, while Gilman continues the search for additional space.

“It can be hard to create 200,000-square feet of storage space all in one shot” says Gilman.

The second point Gilman stresses is that NEPW will remain a presence in Paris.  Because of the rail spur, the property itself has a high degree of value.  The only real question is, can the old tannery building be rebuilt, or should NEPW knock it down and make a fresh start.

“That’s really way up in the air, right now,” says Gilman.  “We’re going over things with insurers and inspectors and structural engineers to determine the best course of action.”

For now, Gilman says, the top priority is to keep product flowing, whatever the additional cost.  And that cost, he said, without putting a price tag on it, is “very expensive.”

The one saving grace, he says, is that a number of mills were on short-term shutdowns, meaning there is less demand for storage at the moment than there might ordinarily be this time of year.

But will a disruption in the supply chain create a ripple that might prolong those shutdowns.  No, says, Gilman.  That’s one reason why he’s scrambling to secure short-term warehouse space.

“I strongly believe that we will be able to bring in all the pulp that was scheduled to come in and, although it may cost more to truck it, we’ll get it our customers in a way that is as seamless as possible,” said Gilman.

Still, getting back up to speed and humming on all cylinders will be a long process, he said, which could take as long as six months to a year.

“Working in the paper industry, every day is challenge,” said Gilman.  “What gets me out of bed every morning is knowing that this is just one more challenge.  We’ll figure it out.” 

New face for Main Street Furniture

NORWAY — No, Main Street Furniture and Appliance, formerly known as Western Auto of Norway, is not expanding its storefront out onto the sidewalk. 

Many people have asked that question in the last week, but the plywood frame jutting from the front of the store is only a temporary structure, meant to keep contractors out of the elements.  By late February, when the covering comes down, the store will have an all-new, $75,000 façade — the first significant renovation done to the building at 313 Main Street since it went up in the mid-1950s.

“All of the glass is coming out, so it’s also meant to help keep us warm inside,” said owner Chris Shorey, about the addition which has raised so many eyebrows.  “We know it’s inconvenient for people walking up and down the street, but it’s a necessary evil to the end, right now.  After all, we are essentially replacing the entire storefront.”

One other key point to keep in mind — despite its foreboding appearance, the family-owned store is still open.

Main Street's renovation project is funded, in part, by a $20,000 façade grant from the town of Norway.  The grant program uses money from a state community development block grant administered by the Western Maine Economic Development Council. 

The Shorey family, who are paying for the balance of the work out of pocket, say it's a demonstration of their belief in a healthy, vibrant business community on Main Street.

“We’re committed to Main Street,” says Shorey.  “We’re committed to Norway and we are committed to the people of the Oxford Hills.  We wanted to put our best face forward and, literally, that’s what we are doing with this renovation.”

Long an “anchor store” on Main Street, Western Auto dealt in vehicle parts when it was founded by the Schiavi family more than 50 years ago — hence the name.  Frank Shorey was brought in to manage the store and, liking what he saw, he eventually bought in.  Chris, who took over day-today management in February, started out as chief floor sweeper for his dad in 1978.

With Chris’ ascension came a new name, meant to represent the company’s “small-town business feel.”  As Main Street Furniture and Appliance, the Shoreys jettisoned their line of hardware products, as well as a lawn and garden section.

“We had to do it in order to be a viable business five to 10 years from now,” explains Chris.  “Over the years, it became less and less profitable for a retailer our size to be in that business.  Personally, it was a hard decision, but financially a very easy one.”

The change was not made in haste.  A new business model was prepared and careful planning went into the transition.  Still, Chris says he and his dad have been flabbergasted by the results.

“It’s far exceeded our expectations,” he said.  “The community has really supported us through this change.  For the first time in our company’s history, furniture sales are going to exceed our appliance sales.”

And this is despite the fact that the Shoreys have just brought in their seventh truckload of GE factory seconds.  The company deals in new appliances, of course, but with the market in mind, and thanks to new partnerships available since the change in focus, the Shoreys have stocked up on units that are otherwise new except for small dents and scratches.

“It’s been working out great for the people around here,” says Shorey.  “We are able to buy it inexpensively and we are able to pass it on to the customer inexpensively.  To get a great price for just a little cosmetic damage, a lot of people are able to live with that.”

With three floors of furniture to choose from, Main Street may well be the largest retailer in the Oxford Hills, apart from the big box stores.  Still, Chris says everyone involved works hard to maintain that hometown service that only a small, family-run business can provide.

Although the renovation includes practical aspects, such as new, energy efficient display windows, some thought also went into how the project could benefit the neighborhood.  The end result will be a community bulletin board built into the brick face of the storefront.

“We’ve also got a beautiful new sign that’s coming out,” said Shorey.  “We can’t wait to see it.  We think it will add not only to the building, but to the street.”

The overall attractiveness of Main Street was factored into the design of Portland architects Holt & Lachman, says Shorey.  Although some have bemoaned the recent loss of potential retail space to Norway Savings Bank’s operations center, Shorey remains optimistic about that project, as well as his own.

“We’re excited about what the bank's doing,” he said.  “We’ve heard some people say it should be retail, but as far as we’re concerned, if it’s an attractive building and it’s occupied, we’re happy.  The more attractive we can make our Main Street, the more people are going to come down and look around.   

“To look blighted, like it has been, does not attract customers to my store or to any other store on Main Street,” he added.

R.I.P Growth Council: 1994-2007

OXFORD HILLS — The Growth Council of Oxford Hills is no more.

On Monday, November 26, it will be replaced by the Western Maine Economic Development Council.  The WMEDC will be a new department within Community Concepts, Inc. (CCI), the social services nonprofit headquartered in Paris' Market Square.

The Growth Council’s board of directors agreed to dissolve on Tuesday, November 14, while the CCI board voted to create the WMEDC later that same day.

“The Growth Council is no longer, but its mission survives,” said Growth Council Director John Shattuck, Friday.

Shattuck has been hired to head up the WMEDC.  Joining him will be the Growth Council’s last remaining employee, Marcy Boughter.  In addition, as many as 10 Growth Council directors are expected to take seats on the 15-member WMEDC policy board. 

The Growth Council reportedly had 15 active directors when the group disbanded.

“The policy board will oversee some of the activities of the economic development council and set its direction,” explained CCI spokesman Mary Ellen Therriault, Friday.

According to Shattuck, CCI is recruiting members to fill out the policy board.  Reflecting its previously announced goal to extend economic development countywide, CCI already has tapped its first new member, Dr. Harry “Dutch” Dresser, of Bethel, for a seat on the board. 

Still, while many of the faces will remain the same, Therriault said CCI is “absolutely not” absorbing any of the Growth Council’s existing properties, liabilities, or debt.  Shattuck agreed that the WMEDC will be a beast of an entirely new color.

“This is not, N – O – T, underscore, bold text, not a ‘merger,’” said Shattuck.  “A merger means two companies are genuinely folding their organizations together, and that’s not what’s happening here. 

“The Growth Council has been in dissolution mode since this spring,” explained Shattuck.  “The folks of CCI are simply hiring two people who were previously employed at the Growth Council to head up a new economic development department that will undertake what the Growth Council traditionally did, going back to its roots, but on a more regional basis.”

Shattuck said that for the “next 30 days, or so,” he and Boughter will work to “officially and appropriately” dissolve the Growth Council, while unloading the last of its property holdings.  As the WMEDC, they will continue to work out of the current Growth Council offices inside Key Bank’s Norway branch.

“We’ll be wearing two hats for awhile because we will be doing work that is clearly aligned with the shutting down of the Growth Council at the same time we are working for Community Concepts on productive, economic development actions in the community.”

For example, Shattuck said, Boughter is working to sell the Oddfellows Hall, in Norway, while continuing to manage the town’s Main Street façade program.  The former is “clearly” Growth Council work, he said, while the latter is something Boughter will now do for WMEDC. 

On Friday, Boughter said she expects a report of the structural integrity of the Oddfellows Hall “any day now” from engineer Al Hodsdon III, from Resurgence Engineering & Preservation of Portland.

“That will determine what direction we go in,” she said.  “There are a lot of people patiently waiting for my reply.”

Depending on what Hodson has to say, Shattuck says the Oddfellows building might be sold to any one of several interested buyers.  In that case, about $70,000 in state grant money still available to the Growth Council could be spent on repairs and maintenance.  However, if the report indicates the building is not worth the investment, or if a sale cannot be put together in short order, Shattuck says he may be forced to “surrender” the building to the mortgage holder, Northeast Bank.

That’s the avenue the Growth Council took this past week with its other great albatross, the Bridgton Commerce Center.

Between the Growth Council and CCI votes on Tuesday, Key Bank conducted a foreclosure auction of the one-time woolen mill.  A buyer’s name has not yet been released.

“They found their buyer at that auction, but they did not close that night,” said Shattuck.  “However the bank has informed me that they believe they have now negotiated a deal.”

DEVELOPMENT DOLDRUMS

Problems began in earnest for the Growth Council in late January, 2006 at the Bridgton Commerce Center.  After announcing nearly a year before that it would not renew its lease, Acorn Products vacated its two-thirds of the 115,000-square-foot building.  Without a replacement on hand, that left Dielectric Communications as the only tenant and the Growth Council out $150,000 in annual rent. 

In less than two months, two Growth Council VPs, Barb Deschenes and Bob Shinners, were gone from the company directory.  Soon after, staffers and interns began to disappear from the front office and development director Len Bartel was let go as well.  Even Shattuck, who had been signed on as part of a management deal with the Lake Region Development Council, was sent packing.

By August, Growth Council CEO Brett Doney resigned.  On November 13, 2006, the group’s board of directors picked Shattuck from among 20 applicants to salvage what he could.

The Growth Council was widely criticized for investing outside the Oxford Hills when it bought the former Bridgton Woolen Mill in 1999.  After a month-long review of Growth Council finances, Shattuck concluded that it never should have been in the business of property development at all.

“Some of these places were completely untenable,” says Shattuck, adding that many technology parks in Maine, like the one Doney hoped to build on Pikes Hill, in Norway, have underperformed.

Meanwhile, the Growth Council found itself without enough money to both renovate the Oddfellows Hall and make six-figure loans to area companies, such as Paricon and Maine Machine Products.  At a May, 2006, hearing in Paris, presidents from both companies said they might have gone under without Growth Council help.

That, said Shattuck, is why the Growth Council was founded.   In its last year of life, and with support form his board, Shattuck worked the get the Growth Council out of the property development business.  Along the way, he killed all of the subsidy corporations it had run under the banner of EnterpriseMaine.

Two lots in the still undeveloped Oxford Hills Business Park on Route 26 were sold to Oxford Plains Speedway owner Bill Ryan.  The old J. J. Newberry building — once the shopping anchor of downtown Norway — was sold to Norway Savings Bank for use as an operations and training center.  Finally, in October, the Growth Council completed the sale of 150 acres on Norway’s Pikes Hill, where the Western Maine Technology Park was to have been located. 

“All of these properties were simply beyond our ability to sustain,” says Shattuck. 

In addition to the Oddfellows hall, the Growth Council still owns 11 acres at the top of Pikes Hill.  That lot was split off from property sold to the Western Foothills Land Trust and retained.  The hope is that proceeds from its eventual sale will pay back, to the extent possible, six area towns that invested in the tech park.

BACK TO BASICS

Earlier this year, when plans to join with CCI were unveiled, the Growth Council said it planned to extend its services to the entire CCI service area, including Franklin County and parts of Androscoggin County.  However, Shattuck and Therriault both say the current plan is for the WMEDC to focus its efforts on Oxford County.

“In an overall way, we are looking at what we can do to improve the economic health of Western Maine,” said Therriault. 

Those efforts, said Shattuck, are more likely to involve lending to existing businesses than trying to bring in new ones, and he’ll steer a wide berth away from property development.

“Our first-line commitment will be helping the businesses that are here to retain jobs,” he said.  “Hats off to Bob Bahre, but there is not going to be a Lowe's coming here every week.  What we need to do is help the people who have already made a commitment to be here. 

“You have to work with the folks who are on the ground before you can lure anyone else here,” said Shattuck.  “If we can grow existing businesses, that’s when it becomes more attractive for other businesses to come into the area.”

Apart from business lending, Shattuck listed workforce development — helping businesses find skilled workers, and helping workers learn new skills — as a priority for the WMEDC.  Also on the radar, Shattuck expects to work as an advocate for Oxford County under the capital dome.

“We want to make sure Oxford County is well represented in Augusta when it comes time to hand out money for infrastructure projects,” he said.

However, before that time comes, the WMEDC plans a heavy dose of data collection.

“The very first task will be to reach out to businesses to find what their needs are,” said Therriault.

But will that step on toes within the Chamber of Commerce?  Shattuck sits on the Chamber board and promises no conflict between it and his new employer.  The WMEDC will compliment the Chamber’s work, he said, and not duplicate services.

“The Chamber is primarily about marketing and promoting its member businesses within the Oxford Hills,” said Shattuck.  “We will be working to retain businesses and develop a strong workforce across the region.”

“We anticipate working with some of the people who are already doing work in these areas, and building productive partnerships with them,” said Therriault.  “There is not too much of this that can be done.

“Stay tuned,” she added.  “I think there will be a lot more exciting news coming out in the future.”