[From the U.S. Government Printing Office, www.gpo.gov]


















                      The City of Belfast, Maine
                       HARBOR
                       AND WATERFRONT
                       MANAGEMENT P,LAN

                                                  September 1991

          HT
          168
          34       A Study By The City of Belfast
          H3
          '99'    Harbor and Waterfront Management Plan Committee









                          PURPOSE


                          The Comprehensive Waterfront.and Harbor Management
                          Plan has been prepared to direct the management of
                          harbor and waterfront resources in the City of
                          Belfast.   Like many Maine coastal   ' communities,
                          Belfast faces the challenge to manage the impact
                          of future growth and development upon coastal
                          areas.

                          Historically, the harbor has been oriented towards
                          fishing and industrial uses. Within the past ten
                          years, however, there has been tremendous growth
                          in the number of recreational moorings.     At the
                          same time, Belfast's waterfront has and will
                          continue to undergo major changes as some of the
                          waterfront's most prominent buildings are, or will
                          soon be, vacated (included is a vacant poultry
                          processing plant, a vacant shoe factory, an
                          operating lumber warehouse and, manufacturing
                          facility).   The future use of these properties
                          will profoundly affect the harbor, the waterfront,
                          and the adjacent downtown area.
     kN
                          City officials feel that, if existing planning
                          mechanisms are improved to direct harbor and
                          waterfront development in a manner that will
                          benefit the City, Belfast's harbor and waterfront
                                                                         This
                          problems can be turned into opportunities.
                          project will provide Belfast with an opportunity
                          to assess problems and opportunities associated
                          with different development scenarios, and to
                          develop planning and implementation strategies
                          that will assist in maintaining and enhancing the
                          economic viability of the harbor and waterfront
                          area.


                          Recommendations contained within include both
                          short term and long term management implementation
                          strategies.    This plan, therefore, , should be
                          utilized as a "tool kit" to be implemented and
                          updated over time. This plan provides the City of
                          Belfast with a management plan for future
                          utilization of its waterfront and harbor
                          resources. The plan also contains recommendations
                          for future shoreland zoning provisions, as well as
                          recommendations for municipal improvement
                          projects.




















           The City of Belfast, Maine
           HAMOR and WATERFRONT AIMUNIFATA"
           September 1991


           A Study by the city of Belfast

           Harbor and Waterfront Plan Committee

           chairman: Lawrence Greenleaf
           Interim Chairman: James Sutherland
           Secretary: Frank H. Shaw
           Committee Members:
             Stephen Swayze                       Larry Moses
             Peter Haddock                       Michael Bush
             John Holmes                        James Lovejoy
             Roger Webber                         John Krakar
             Walter Ash, Jr.                      Alex Turner
             Bruce Starrett                        John Worth
             Peter McCarren                  C. Michael Rauch
                          J. Douglas Thompson


           Plan Consultant:

                           SEBAGO TECHNICS9 INC.
                             Prime Consultant
                             William T. Conway
           MARI(ET DECISIONS, INC.               DESIGN SERVICE
           Market Consultant                   Marine Consultant
           Peter Piceirillo                       Robert E. Ware








                         ACIMIUDGMENTS
                         Funding Assistance:
                         The Maine Coastal Program
                         "Financial assistance f or   preparation of this
                         document was provided by a grant from MAINE'S
                         COASTAL PROGRAM, through funding provided by the
                         Coastal Zone Management Act of 1972, as amended,
                         administered by the Of f ice of Ocean and Coastal
                         Resource Management, National oceanic and
                         Atmospheric Administration, under award
                         #NA90AA-D-CZ521.11    Specific aspects of this
                         document pertaining to economic revitalization
                         were accomplished through financial assistance
                         from the Economic Development Administration.
                         The Economic Development Administration

                         "This Economic Adjustment Strategy, as def ined by
                         the Market Potential Analysis Section of Part 5 of
                         this document, was accomplished by professional
                         consultants under contract to the County of Waldo
                         and the Waldo County opportunity Zone through
                         Economic Development Administration Adjustment
                         Strategy Grant No. (01-19-02993). The statements,
                         findings, conclusions, recommendations, and other
                         data in this report are solely those of the
                         contractor and do not necessarily reflect the
                         views of the Economic Development Administration."


                         Public Participation and Technical Assistance

                         The Committee wishes to express their appreciation
                         for assistance received by the following
                         individuals and organizations:

                         The Residents of the City of Belfast
                         Arlo Redman, City Manager
                         Robert Temple, City Code Enforcement officer
                         The Belfast Comprehensive Plan Committee
                         The Belfast Planning Board
                         The Belfast City Council
                         Tamara Risser, Maine Department of Community &
                                        Economic Development
                         Robert Elder, Maine Department of Transportation
                         Robert Lewis, Maine Department of Marine Resources
                         Allison Jones Webb, Maine Tomorrow,
                                             Comprehensive Plan Consultant





















                           CONTENT

                                                                       Page No.
                           PART 1: EXECUTIVE SUMMARY       ............   1

                           PART2: MARKET ANALYSIS SUMMARY .............  15

                           PART 3: ANALYSIS AND POLICY DEVELOPMENT
                                                                         21
                           . Future Land Use      . Port and Harbor
                                                    Resources

                           . Public Access and    . Municipal Action
                             Open Space             Plan


                           PART 4: IMPLEMENTATIONT STRATEGY ...........  34

                           . Descriptive Summary - Potential Funding
                                                   Sources

                           . Priorities and Fiscal Expenditures

                           PART 5: APPENDICES    .....................  44

                           . Market Potential Analysis

                           . Public Opinion       . Waterfront
                             Survey                 Zoning Language

                           . Inventory Mapping    . Coastal Planning
                                                    Grant Application
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           EXECUTIVE
           SUMMARY 

   1 
 










           EXECUT1111 SBMARY


           ]INTRODUCTION

           The year 1991 marks the onset of a new era of
           change on the Belfast waterfront. Perhaps more so
           than at any time in the recent past, the City of
           Belfast has a great opportunity to influence the
           destiny of its waterfront image, character and
           functional utility. The challenge is ultimately
           created between the need to promote immediate
           economic revitalization and the desire to control
           the ultimate future of appropriate waterfront
           development. This plan is developed in response
           to waterfront planning policies established in
           order to direct the future growth and management
           of waterfront and harbor resources. The focus of
           the plan is placed upon the importance of
           shoreline and water resource management which
           recognizes the inevitability of change and the
           need for the City of Belfast to play an active
           role in that process.



           Process

           The planning process is initiated by conducting an
           inventory of existing conditions including, but
           not limited to, existing land use, harbor
           conditions and conflicting harbor uses, municipal
           infrastructure, and sensitive natural resource
           areas.    Based upon analysis of existing
           information, public opinion regarding waterfront
           needs, and upon direction from the Harbor and
           Waterfront Plan Committee, a series of goals and
           objectives formulate the framework of the plan.
           Finally, recommendations and implementation
           strategies are developed to serve as a "tool kit"
           for future management purposes. It is important
           to note that many recommendations are long-term
           and, in as much, require further evaluation and
           implementation over time. Specific aspects of the
           Comprehensive Harbor and Waterfront Management
           Plan include the following...


                                                                        2















                         WATERFRONT 1AN`D USE

                         Policy:   To s timulate economic.revitalization of
                                   the waterfront while supporting
                                   shoreline management which gives
                                   preference to water-dependent uses and
                                   the provision of public access to the
                                   waterfront,       and to encourage
                                   redevelopment which is compatible with
                                   existing land uses and environmentally
                                   sensitive areas.

                         In the last decade, the Belfast waterfront has
                         witnessed significant change respective to
                         waterfront land use.     In the waterfront areas
                         adjacent to downtown, virtually all of the City's
                         most prominent buildings have been vacated.
                         Prominence, in this case, refers to the scale of
                         these large, industrial operations which have
                         since closed or relocated to other areas within
                         the City. in this process, a major sector of the
                         waterfront remains vacant and underutilized. on
                         the heels of industry leaving the waterfront came
                         the revitalization of the downtown and public
                         waterfront facilities. Main Street was improved
                         with granite curbing, brick sidewalks, benches and
                         period lighting fixtures.     On the bay, a 'new
                         breakwater and launch ramp were constructed, and
                         the City established a public park with impressive
                         open space along the shoreline.

                         This plan establishes the framework for the future
                         of the Belfast waterfront. Based upon the review
                         of existing conditions, issues affecting
                         waterfront areas, and market assessment studies,
                         recommendations for waterfront land use are
                         responsive to viable alternatives for future
                         growth. As Belfast is poised for its next period
                         of change, proper management of land use
                         development is vital in controlling the ultimate
                         character of waterfront areasi


           3














           The Downto-Am Waterfront

           In downtown waterfront areas     it is recommended
           that industrial uses be prohibited in the future.
           As an exception, the Stinson Canning Company
           property could remain industrial if abandoned for
           more than one year,       provided that the new
           operation requires a waterfront location. Between
           Front Street and the harbor, preference is given
           to land uses which are dependent upon a waterfront
           location.   While these water-dependent uses and
           marine-.related uses are preferred, additional uses
           should be allowed in order to accelerate economic
           development.    Proposed pez-mitted uses include
           retail stores and restaurants, professional
           offices, municipal uses, and residential dwelling
           units (limited to upper floors only).

           The Waterfront and Harbor Management Plan
           Committee considered and rejected a requirement
           that a certain percentage of this area be
           developed as water- 'dependent/marine related uses.
           While this area contains the only suitable
           conditions in the City for these uses, the
           Committee finds that a percentage requirement
           would negatively impact the rate of waterfront
           redevelopment. In recognition of the importance
           of water-dependent/marine related uses, however,
           density bonuses and other incentives are proposed
           for future projects including these uses. These
           incentives should also be considered for
           development proposals which provide for public
           access to the waterfront or which preserve open
           space and views to the harbor in all districts.

           Less restrictive land use controls are proposed
           uphill from Front Street and adjacent to the
           downtown business district and residential
           neighborhoods as these areas are not suitable for
           water-dependent uses.     Within this area, uses
           include office complexes, hotels, motels, and
           residential planned unit developments.     Incentive
           zoning opportunities are also recommended in this
           area for development proposals which provide for
           public access to the waterfront or which preserve
           open space and views to the harbor.


















                         Within the downtown waterfront area, the plan also
                         recommends that the City control the architectural
                         design of new structures and renovated structures.
                         This recommendation is made not to stifle
                         innovative architectural design, but rather to
                         ensure the compatibility of future projects with
                         existing downtown businesses and residential
                         structures.     As redevelopment projects are
                         undertaken, existing structures will require minor
                         or significant external improvements in order to
                         comply with architectural compatibility
                         requirements.

                         Municipally owned properties in the downtown
                         ,@aterfront areas will continue to-play a key role
                         in the redevelopment process. The Heritage Park
                         property should remain devoted to public access
                         and open space.    It is further recommended that
                         the center building be removed in association with
                         the development of Federal Street as a primary
                         pedestrian link between downtown and the
                         waterfront. The remaining two structures should
                         be utilized to support the public landing, marine
                         related business, And visitor services.

                         Additional recommendations pertain to the sewage
                         treatment plant property, municipal parking areas,
                         and the land containing the Belfast and Moosehead
                         Lake Railroad.     Due to its proximity to the
                         waterfront and downtown businesses, the sewage
                         treatment plant should be covered to reduce odors
                         and should be intensively landscaped to soften its
                         impact on adjacent land uses. Municipal parking
                         areas should be expanded to satisfy future demand
                         and should be landscaped to improve the pedestrian
                         experience and linkage to downtown and waterfront
                         pedestrian routes. As of this writing, the City
                         of Belfast is seeking proposals from the private
                         sector for the development of a'marina facility at
                         the railroad property. The Waterfront and Harbor
                         Management Plan Committee finds this effort to be
                         supportive of the overall plan presented herein.















           The East Side Waterfront

           Land use on the east side of Belfast Bay is driven
           by two primary factors: harbor conditions and the
           U. S. Route One corridor. As a general rule, the
           east side of Belfast Bay is comprised of extensive
           mud flats and, therefore, unsuitable for
           water-dependent uses.    As an exception, Youngs
           Lobster Pound is an established business whose
           activities include wholesale and retail lobster
           sales, as well as a fine restaurant.     The U. S.
           Route One corridor supports a variety of land uses
           emphasized by a proliferation of motel
           establishments.     In addition, the East Side
           contains a significant residential population
           which enjoys "the view" across the harbor to
           downtown.

           Analysis of existing developed areas reveals great
           potential for future development on the East Side.
           In addition to some undeveloped parcels, there
           exists significant development potential between
           the U. S. Route One "strip" and the waterfront.
           Because this area is serviced by municipal
           utilities and is relatively free from environment
           constraints,    it is generally suitable for
           continued development.

           This plan does not recommend changes to existing
           zoning districts and permitted land uses on the
           East Side, with the exception of dimensional
           revisions required for compliance with State-
           mandated Shoreland Zoning regulations.          The
           Waterfront and Harbor Management Plan Committee
           finds that the mixed uses currently permitted in
           this area are appropriate with historical and
           recent development patterns.       The Committee
           further envisions this area as prime real estate
           with great potential for positive social and
           fiscal benefit to the residents of the City. Due
           to the presence of U. S. Route One and harbor
           conditions, development of the East Side will not
           significantly detract from the revitalization of
           the downtown waterfront.








                           The Passaas%wak=Waterfront

                           Some may f ind it dif f icult  to identify where the
                           transition occurs between the Passagassawakeag
                           River and Belfast Bay. In      physical and cultural
                           terms, the former and present U. S. Route one
                           bridge structures establish a definable edge
                           condition.      Beyond the bridges one enters a
                           separate landscape characterized by steep terrain
                           and undeveloped areas interspersed with pockets of
                           residential development.

                           This plan recommends that future land use in this
                           area remain residential. In addition, excessively
                           steep areas should be designated for resource
                           protection in order to retain the integrity and
                           environmental character which exists today.



                           PUBUC ACCESS and OPEN SPACE

                           Policy:     To ensure adequate future public access
                                       to shoreline areas, while maintaining
                                       the environmental integrity of the
                                       coast, and to promote the retention and
                                       development of open space in waterfront
                                       areas.

                           The City    of Belfast has established excellent
                           public access to the waterfront in association
                           with the Heritage Park property and public landing
                           development. As the physical and visual terminus
                           of Main Street, this access facility and
                           associated open space provide a strong connection
                           with downtown and offers an inviting atmosphere
                           within the heart of the Belfast waterfront. While
                           the City landing and park area represent
                           significant  facilities for the City, future demand
                           for access   and open space will necessitate the
                           development  of additional facilities.

                           Competition for parking and access at the City
                           landing is   created by various groups, including
                           commercial fishermen, recreational boaters,
                           marine-related businesses, and the seasonal
                           tourist population.          The presence of the
                           Weathervane Restaurant further exacerbates
                           competition for parking space.



         7









           While the commercial fishing industry is limited
           in Belfast, it is important to ensure that
           commercial fishermen have adequate access to the
           harbor. Presently, the fishermen utilize the City
           landing and adjacent parking facilities.     In so
           doing, these individuals must use the ramp and
           float system also used by recreational boaters.
           This shared use inhibits commercial operations and
           often offends recreational boaters.     This plan
           recommends that the City establish a location
           separate from the City landing for the exclusive
           use of the commercial fishermen in Belfast. The
           Stinson Canning Company has expressed a
           willingness to utilize a portion of its property
           for this purpose. The City, in association with
           local commercial fishermen, should pursue and
           implement a perpetual access agreement in      this
           location.

           Respective to the existing landing, the        City
           should consider further limitation and
           restrictions for use of parking facilities.      As
           parking demand increases, the natural inclination
           may be to expand parking facilities into the
           existing open space and picnic areas. This action
           would represent a loss of significant value to the
           municipality. The City should continue to allow
           short-term parking only and, as demand increases,
           develop a drop-off zone supported by additional
           public parking areas not located on the shoreline.

           Implementation of future public access facilities
           and open space areas may be accomplished by two
           primary methods. The first method is to encourage
           private development projects to incorporate these
           amenities. Through incentive zoning provisions,
           private developers may incorporate public access
           to or along the shoreline into their development
           plans. In addition, incentives may be offered for
           the retention of open space and view corridors to
           the harbor. Areas reserved for open space or view
           corridors need not necessarily be available, for
           public use.

           Bonus or incentive zoning provides flexibility in
           land use decisions.   The municipality typically
           retains discretion to permit or deny a specific
           proposed "bonusable" amenity.         Furthermore,
           implementation does not demand a sophisticated or
           expensive administrative program.












                          Incentives, which are considered on a case-by-case
                          basis, may include increased densities, reduced
                          setback dimensions, or other provisions related to
                          a specific development proposal.       Under this
                          framework, the burden of the proposed incentives
                          lies with the development proposer, not with the
                          City. As aforementioned, the City may permit or
                          deny any proposal based on the merits of its value
                          'to residents of the City.

                          The second method for implementing additional
                          public access and open space areas is for the City
                          to take an active role in the development of these
                          facilities. Recommendations include the following
                          municipal objectives:

                          a  Urban mini parks at the foot of Commercial
                             Street, at each side of the former U. S. Route
                             One bridge, and at the pedestrian exits from
                             the municipal parking area at Main Street.

                          a  A passive recreation park adjacent to the Goose
                             River on the East Side.

                          a  Perpetual retention of open space at the
                             City-owned Heritage Park property.

                          PORT AND HARBOR RESOURCES

                          Policy:   To provide for maximum-utilization of
                                    the harbor for commercial and
                                    recreational use while protecting and
                                    improving water quality and natural
                                    marine resources.

                          The Belfast Harbor Advisory Committee is to be
                          commended for their efforts associated with harbor
                          management planning and operations.. in the past
                          six years, the Advisory Committee has undertaken a
                          comprehensive approach to the management of the
                          harbor and municipal port facilities. The harbor
                          ordinance currently in place is extremely
                          thorough. Mooring locations have been mapped in
                          accordance with the Maine State Plane Coordinate
                          System.   In terms of operations, the harbor is
                          fiscally self-sufficient in terms of municipal
                          expenditures.







           Recommendations pertinent to port and harbor
           facilities include physical harbor improvements,
           as well as the creation of additional mooring
           areas.    Physical harbor improvements proposed
           include a 400 foot pier extending from Commercial
           Street into the harbor.       This facility would
           provide for pedestrian access, as well as improve
           conditions for future marina development behind
           the breakwater.

           On the opp osite side of the bay, a 500 foot wave
           attenuation device is proposed to extend into the
           bay from Patterson Point. While not intended for
           pedestrian access or berthing, this structure will
           mitigate wind and wave action within the harbor,
           and improve conditions for marina development or
           concentrated vessel moorage.

           In addition to marina development within the
           harbor, the Harbor Advisory Committee should
           consider more effective use of moorage areas.      In
           lieu of individual point moorings, two point float
           berthing systems should be utilized to increase
           the density within moorage areas.

           The plan further recommends dredging the area
           beyond the U. S. Route One bridge to provide for
           increased moorage space.        Due to the height
           limitation imposed by the former and lower bridge
           structure, this area should be dedicated to power
           boats only.

           Finally, it is recommended that the City take an
           active role in the protection of water quality and
           marine resources within the river and harbor.
           These resources provide habitat for shellfish and
           marine worms which represent a commercial and
           recreational resource to the community.
           Additional species found in these waters include
           Atlantic Salmon, Alewives, Rainbow Smelt, Mackerel
           and the American Eel.     In addition, intertidal
           flats provide important 'habitat for numerous
           species of waterfowl.

           The Maine Department of Marine Resources veri    fies
           that, while these habitat areas were once open to
           shellfish harvesting, they are presently closed
           due to pollution.    In cooperation with this and
           other State agencies, the City should undertake a
           long-range plan to improve water quality and
           reopen these areas for commercial and recreational
           use.





                                                                             10






                          MAXIM ACTION PLAN


                          Policy:   To promote the involvement of the City
                                    of Belfast in the redevelopment of its
                                    vaterfront and harbor as the City must
                                    play a key role in the short-term and
                                    future utilization of these resources.

                          Beyond plan components which address waterf tont
                          land use, public access and open space, and port
                          and harbor facilities, municipal leadership is
                          critical.   Together, these aspects of the plan
                          formu'late the overall redevelopment plan and
                          define the City's control during the
                          implementation process. Key elements of municipal
                          involvement include the following:

                             Create a Waterfront Redevelopment Corporation
                             whose mission would be to actively pursue the
                             implementation of the Comprehensive Waterfront
                             and Harbor Management Plan.

                             Because a development corporation is formed for
                             public purposes and will not itself accrue
                             profit from its operation, it is tax exempt and
                             can be fueled by any combination of member
                             dues, private or public grants, State and
                             Federal loans, and in-house revenues. Specific
                             objectives of the development corporation
                             include the following:

                                Assist the Planning Board and City Council
                                in the implementation of revisions to
                                zoning ordinances.

                             ï¿½  Assist the present owners or prospective
                                developers of the major vacant waterfront
                                parcels in the redevelopment plans for
                                these properties.

                             ï¿½  Support the local commercial fishing
                                industry.

                             ï¿½  Coordinate land and water development
                                issues with the Harbor Advisory Committee.

                                Pursue funding and grants to facilitate
                                harbor and waterfront improvement projects.

                                Maintain momentum and direction for the
                                waterfront redevelopment process.








                Implement improvements to Front Street as a
                means of enhancing the waterfront and
                attracting private waterfront redevelopment
                projects. Between Commercial Street and the
                former U. S. Route One Bridge, Front Street
                should be improved to include curbing,
                sidewalks, landscaping and period lighting
                fixtures. Design details should repeat those
                used in the improvements to Main Street and
                downtown. As part of these improvements, the
                turning radius from Main Street onto
                northbound Front Street should be increased
                for improved safety.

                Develop Federal Street as a primary linkage
                between the municipal parking area on Main
                Street and the waterfront.      As vehicular
                traffic will utilize Main Street as the
                primary route to the waterfront, Federal
                Street should be developed as a pedestrian
                way from the downtown business district to
                Front Street and Heritage Park.            In
                conjunction with this project, the City
                should demolish the center building in
                Heritage Park.    Removal of this structure
                will provide a strong visual link to the
                harbor as the pedestrian descends Federal
                Street from the downtown area.

                Expand the municipal parking area on Main
                Street as the demand for parking is increased
                by waterfront redevelopment. The expansion
                area should occur between the existing
                parking area and the sewage treatment plant.
                As retaining walls may be required for this
                expansion, the city should plan for the
                associated construction costs and proper
                timing for this project. In conjunction with
                this effort, the City should develop "pocket
                parks" at both the Main Street and Front
                Street pedestrian exit locations.         The
                descent to Front Street should be designed
                for an accommodating route for handicapped
                and elderly pedestrians. Pocket parks will
                serve as pedestrian collection areas with
                seating and community information kiosks.
                Design details should be compatible with area
                sidewalks; crosswalks should be planned to
                direct pedestrian traffic across Main Street
                to Federal Street and across Front Street to
                waterfront destinations.



                                                                           12




















                               Conduct an engineering study of the sewage
                               treatment plant to determine methods of
                               reducing odors generated by the plant. Dome
                               covers should be considered as an alternative
                               solution.   Should the City require expansion
                               of its treatment capacity, new sites should
                               be considered for additional facilities.      if
                               new sites are not feasible, any expansion
                               must be carefully designed as- as to minimize
                               the impact on adjacent downtown and
                               waterfront areas.        In the short term,
                               sufficient landscape materials should be
                               planted to screen    the existing facilities.
                               In addition, the     City should measure the
                               impact on water      quality in the harbor
                               generated by the     existing facility.       if
                               feasible, the City   should extend the outfall
                               to the outer limits  of the harbor.

                               Establish waterfront mini-parks at the foot
                               of Commercial Street, and at either terminus
                               of the former U. S. Route One bridge. These
                               parks should include night lighting and
                               seating to support passive recreational use.

                               Establish a significant municipal park on the
                               East Side adjacent to the Goose River and its
                               confluence with the harbor.      The City must
                               negotiate the right to implement this
                               facility with Central Maine Power Company,
                               present owner of the property.        The park
                               design program should be focused on passive
                               recreation activities.      Facilities should
                               include limited,, but sufficient, parking,
                               walking paths, seating, and night lighting.
                               In addition, interpretive signage should be
                               incorporated to provide educational
                               information on the Goose River, Belfast Bay,
                               fisheries and marine resources, and
                               hydroelectric infrastructure.



        13
































                Remove the existing railroad tracks to the
                south of the Belfast and Moosehead Lake
                Railroad Yard. As industrial uses are phased
                out of the waterfront, the existing tracks
                will no longer serve any useful purpose.
                Removal of the tracks will allow utilization
                of the railbed as a pedestrian way.

                Conduct an updated engineering study to
                evaluate the structural stability of the
                former U. S. Route One bridge. In the early
                1980's the 'City conducted a study which
                concluded that the bridge required repairs
                for short-term stability and major structural
                repairs for long-term utility.     As a long
                range objective, the City of Belfast should
                implement the major structural repairs
                required. In the short term, the City should
                undertake an annual professional inspection
                of the bridge to evaluate safety conditions
                and close the bridge to pedestrian traffic,
                if necessary. Ultimately, the bridge should
                -serve as a pedestrian and bicycle path
                linkage from the downtown waterfront to the
                East Side.



                                                                           14




                
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    		MARKET
    		ANALYSIS SUMMARY
 15
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                         MARKET ANALYSIS SUMNMY

                         Market Decisions, Inc. Is role in the development
                         of the plan was to provide a brief overview of the
                         market supports for a limited number of uses as
                         they related to the waterfront redevelopment. The
                         four types of development that were analyzed
                         included:

                         1.  Marina
                         2.  Marine related retail
                         3.  Hotel
                         4.  Office


                         The market overview for each use included:

                         1.  Identification of market area
                         2.  Demographic and economic overview
                         3.  Demand analysis of potential market supports

                         The overview does not include a detailed
                         evaluation of the competitive environment with
                         respect to each use. Therefore, though the demand
                         analysis may indicate the overall market for a
                         use, we cannot determine to what extent that
                         demand is currently being satisfied by comparable
                         facilities in the Belfast area.         Because a
                         comprehensive market study was not conducted for
                         each use, definitive conclusions and
                         recommendations concerning the four different
                         uses, therefore, cannot be determined.



        16




















           Marina Potential

           Based on the trade area identified in the study by
           Market Decisions, there are estimated market
           supports for approximately 100 marina slips in
           Belfast.     It is important to note that this
           estimate of demand is a "ballpark" figure based on
           available official data sources and extrapolating
           data from previous marina market studies.conducted
           by Market Decisions in the mid-coast area. Since
           no survey of boat owners has been conducted to
           measure specific interest in Belfast Harbor, it is
           difficult to determine demand with a high degree
           of accuracy. However, Market Decisions believes
           that the analysis does provide an order of
           magnitude of the demand potential for the
           development of a marina in Belfast.           Market
           Decisions cautions that previous marina studies
           have indicated a price sensitivity with respect to
           slip rents in the mid-coast area.               This
           sensitivity stems from, in part, the economics of
           the area and a loyalty of boat owners to
           inexpensive moorings at $30 (local) and $90
           (non-resident) per season.

           Market Decisions recommends that a prerequisite of
           the development of a marina be a comprehensive
           market study to determine: (1) cost analysis of a
           marina; (2) a more specific determination of
           demand for slips in Belfast Harbor; and (3) the
           price sensitivity to those slips.

           market Decisions recommends that the City of
           Belfast pursue a private developer for a marina
           project. Of the four uses analyzed, we believe
           this to be the best use alternative.      A marina
           project should serve as a catalyst for the
           long-term overall development strategy of the
          'waterfront.




                                                                            17



























                         Marine Related RehdI

                         Much of the supply needs of boat owners in the
                         Belfast area are currently being served by area
                         marine retail stores such as Hamilton Marine in
                         Searsport, the largest marine retail store north
                         of Boston.

                         Market Decisions believes that the marine retail
                         use poses somewhat of a "chicken and egg" dilemma.
                         On one hand, the size and range of supplies
                         offered by a marine stoke will be directly related
                         to the size of the marina, including the number of
                         boats in slips and on moorings, as well as the
                         number of transient boats using Belfast as a
                         stopover point. '  The transient boat owner will
                         have the greatest influence on the range of
                         supplies to be offered. The other factor in the
                         dilemma is that marine supplies must be available
                         when the marina opens.

                         Therefore, Market Decisions recommends that a
                         marine supply store that sells a limited range of
                         items be part of the overall marina development
                         plan. Though most of the local boat owners will
                         choose to shop at Hamilton Marine (or one of the
                         other marine retail establishments in the
                         mid-coast region) to purchase a majority of their
                         supplies, a marine store on the waterfront can
                         serve to fill their immediate demands. Any marine
                         retail activity should position itself and provide
                         for flexibility with respect to providing a range
                         of supplies demanded by transient boat traffic.




       18
















           Hotel Potential

           Based on the trade area identified in the market
           study, indications are that the market supports do
           not exist at this time for a moderate size (40-50
           room) hotel on the Belfast waterfront. The demand
           f or transient rooms is generated by two broad
           markets: leisure or pleasure travel and business
           travel (including conventions and conferences).
           Based on hotel industry standards and
           requirements, a new moderate size project would
           need to achieve a minimum annual occupancy rate of
           65% in order to be profitable.          Based on
           historical occupancy rates of Belfast area hotels
           and previous tourism market studies conducted for
           the Maine State Development Office, it is doubtful
           that this level of performance could be achieved.
           Market Decisions recommends that this use not be
           pursued at this time.


           Mice Potential

           Market Decisions (with assistance from the Waldo
           County Opportunity Zone) estimates that there are
           approximately 125,000 - 130,000 square feet of
           office space in the Belfast area.     This figure
           does not include office space that is associated
           with manufacturing facilities, such as Penobscot
           Frozen Food or Stinson Canning.    The demand for
           office space depends on new business formation in
           the area, on businesses relocating to the area,
           and on local businesses expanding.

           Based on national standards, on average
           approximately 200 square feet of office spac  Ie is
           allocated per white collar employee. According to
           the Maine Department of Labor, there was an annual
           average of 640 white collar employees working in
           the Belfast LKA in 1990. Based on an average of
           200 square feet per employee, there is a current
           estimated demand of 128,000 square feet of office
           space in the market area.



                                                                          19




























                          Current market conditions indicate that much of
                          the office space being absorbed in Belfast
                          (primarily at the Belfast Center building) is by
                          firms seeking more space with better amenities,
                          such as parking,, for the same or lower lease
                          rates. Professionals, including doctors, lawyers,
                          accountants, etc., also have the option of
                          purchasing single family homes and converting them
                          to office space.

                          The Maine Department of Labor data does not
                          suggest that the Belfast area will likely
                          experience growth in white collar jobs that will
                          justify the need for the development of moderate
                          to large amounts of office space in Belfast during
                          the next five years.

                          Market Decisions recommends that development of
                          office space not be a primary focus of the Belfast
                          waterfront plan.

                          Any future potential for the creation of an office
                          space project on the Belfast waterfront will need
                          to offer quality space in flexible sizes, with
                          amenities such as ample parking, in order to be
                          successful.  It appears that the current demand
                          for office space in the Belfast LMA is being
                          adequately served.    Market Decisions believes
                          that, unless a moderate to large employer moves to
                          the area or Belfast can position itself as a
                          strategic location for a satellite office for
                          firms serving the mid-coast, there will not be
                          adequate growth in the employment sectors that
                          demand office space to make an office project
                          feasible at this time.




       20
















                              


              	POLICY 
                  DEVELOPMENT
   21

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                           ANALYSIS AND POLICY DEVELOPAWAT
                           FURODUCTION

                           This section of the comprehensive Waterfront and
                           Harbor Management Plan establishes a series of
                           policies and objectives which formulate the
                           framework for recommendations contained within the
                           plan.    The policies and objectives are derived
                           from the study of existing conditions, issues
                           identified by these studies, market analysis and
                           assessment, and by public opinion received during
                           the formulation of the plan.         Policies and
                           objectives plan components address waterfront land
                           use, public access and open space, and port and
                           harbor resources.     .In addition, policies and
                           objectives have been developed respective to the
                           involvement of the City of Belfast in controlling
                           the future of its waterfront and harbor areas.
                           A. WATERFROW LAND USE

                           Polk,:    To stimulate economic revitalization of
                                     the waterfront while supporting
                                     shoreline management which gives
                                     preference to vater-dependent uses and
                                     the provision of public access to the
                                     waterfront, and to encourage
                                     redevelopment vhich is compatible vith
                                     existing land uses and environmentally
                                     sensitive areas.
                           Objective The following specific objectives are
                                     developed in support of this overall
                                     policy statement which pertains to three
                                     land use districts comprising the
                                     Belfast vaterfront.

                           The Downtown Waterfi-ont

                           A-1. Utilize the City-owned Heritage Park
                                buildings to stimulate water-related land
                                uses, as well as for tourist information and
                                services.

                                    These buildings contain approximately
                                    2,600 square feet of leasable space and
                                    are currently utilized primarily on a
                                    seasonal basis. Year round utilization
                                    will require improvements, including
                                    insulation, plumbing, and mechanical
                                    work.




          22












                       The market analysis concludes that
                       marine uses will stimulate redevelopment
                       activity.   Insomuch, the City has the
                       opportunity to lead this direction by
                       controlling the leases on existing
                       structures.

                       These buildings may serve as the
                       "municipal gateway" to the waterfront,
                       both from the land and from transient
                       harbor users. The City should capture
                       this opportunity to provide tourist
                       information services.

           A-2. Promote the development of water-dependent
                 and water-related uses where conditions are
                 favorable for these uses.

                       The waterfront area between Commercial
                       Street and the old U. S. Route One
                       bridge is ideally suitable for these
                       uses, and there are limited
                       environmental constraints in this area.

                       These uses are most suitable within the
                       proximity of Heritage Park and existing
                       uses, including Belfast Boatyard,
                       Penobscot Bay Towing Company, and the
                       Consumer Fuels Company marina.

                       Public opinion favors these uses. The
                       percentage of responses from the public
                       opinion survey in favor of these uses
                       include marine-related retail (88% in
                       favor), marinas (73%), boat building and
                       repair (75%), and commercial fishing
                       (82%).

           A-3.  Permit the development of uses which are not
                 water-dependent nor water-related in
                 shoreland areas suitable for these uses, in
                 order to stimulate the rate of waterfront
                 redevelopment.

                       Market analysis and assessment indicates
                       that there is limited potential for
                       water-dependent and water-related uses
                       in the short-term future.



                                                                               23













                                     The size and configuration of waterfront
                                     parcels dictates the necessity to
                                     develop upper floors of existing or
                                     proposed structures which does not
                                     generally support water dependent nor
                                     water-related uses.

                                     Public opinion does not support zoning
                                     amendments which would require land uses
                                     which are water-dependent (65% opposed).
                                     In turn, public opinion supports land
                                     uses which are not water-dependent
                                     provided that these uses are compatible
                                     with and do. not interfere with
                                     water-dependent uses (67% in favor).

                          A-4. Encourage redevelopment which is compatible
                               with the existing business district and
                               residential neighborhoods in order to
                               establish physical and cultural linkage
                               between these areas and the waterfront.

                                     As Main Street exemplifies the
                                     11character of the City" and provides the
                                     primary route to the waterfront, the
                                     City has the opportunity to establish a
                                     strong linkage between this business
                                     district and the waterfront.

                                     Downtown -residential neighborhoods are
                                     currently isolated from the waterfront
                                     due to the scale of industrial buildings
                                     and the undesirable pedestrian
                                     environment associated with these
                                     properties..

                                     New structures or remodeled structures
                                     should repeat materials used in the Main
                                     Street district and in residential
                                     neighborhoods in order to provide
                                     continuity with existing structures.

                          A-5. Prohibit industrial uses in the downtown
                               waterfront with the. exception of the Stinson
                               Canning Company which is dependent upon its
                               waterfront location.




          24

















                     The 1990-1991 proposal to re-open the
                     Penobscot Poultry Plant raised serious
                     concern within Belfast and surrounding
                     communities. while many area residents
                     favored the proposal, their basis for
                     support was most probably based upon
                     prospective employment opportunities.

                     Industrial uses are incompatible with
                     existing business areas and residential
                     neighborhoods respective to the scale
                     and bulk of structures,, noise, truck
                     traffic and safety, and the general lack
                     of compatibility due to the, inherent
                     differences between industrial uses and
                     non-industrial uses.

                     Industrial uses may create. adverse
                     impacts upon water quality within the
                     harbor.


                     Industrial uses will deter the
                     development or redevelopment of
                     non-industrial uses on adjacent or
                     nearby waterfront properties, due to the
                     inherent aspects of industrial uses
                     described herein.

                     Public opinion survey respondents oppose
                     industrial uses which are not
                     marine-related (56% opposed) while
                     favoring marine-related industrial uses
                     (56% in favor).

                     The City of Belfast should consider the
                     acquisition of the Penobscot Poultry
                     Plant property as a means of initiating
                     the next era of activity on the
                     waterfront.     With the "threat" of
                     re-opening of the plant removed,
                     desirable land useg"within the downtown
                     waterfront will be less hesitant to
                     locate in this area.



                                                                         25







                                    Stinsons    Canning company is a
                                    marine-related industrial use and is
                                    somewhat isolated from the remainder of
                                    the waterfront.   As a fish processing
                                    facility, Stinsons is dependent upon its
                                    waterfront location at certain times
                                    when the catch is off-loaded from the
                                    harbor. Inasmuch, this operation should
                                    continue as a permitted and accepted
                                    land use with certain conditions for
                                    future operations of the facility.


                          The East Side Waterfront

                          A-6. Promote the development of a mixture of land
                               uses currently permitted.

                                    Harbor and waterfront conditions on the
                                    East Side are generally not favorable
                                    for water-dependent nor water-related
                                    land uses.

                                    Historical and recent land use
                                    development on the East Side has been
                                    comprised of numerous land use types.

                                    Public opinion favors mixed use
                                    development on the East Side. Given a
                                    choice of thirteen possible land uses,
                                    public responses favored all but one
                                    (industrial uses).

                          A-7. Promote the protection of     environmentally
                               sensitive areas from development activity.

                                    Environmentally sensitive areas include
                                    steep slopes in several locations,, as
                                    well as the Goose River corridor as it
                                    enters Belfast Bay.
                          The Passagassawakeag Waterfmnt

                          A-8. Limit future development within this area to
                               residential uses and related uses which do
                               not generate substantial traffic circulation.

                                    Harbor and waterfront conditions in this
                                    area are generally not suitable for
                                    water-dependent nor water-related uses.

                                    Existing developed areas are primarily
                                    residential.




         26













                       Roadways in the area have limited
                       capacity to absorb additional traf f ic
                       circulation.

            A-9. Promote the protection of environmentally
                 sensitive areas from development activity.

                       Topographic conditions in this area are
                       comprised of excessively steep slopes;
                       erosion and flooding potential is
                       present along the riverfront.



            B. PUBUC ACCESSANV OPEN SPACE


            Policy:    To ensure adequate future public access
                       to shoreline areas while maintaining the
                       environmental integrity of the coast and
                       to promote the retention and development
            Objectives: of open space in waterfront areas.
            B-1. Improve the Heritage Park          property to
                 accommodate public access and passive
                 recreation use.

                       As a valuable asset to the City and
                       visitors, the existing "park" area
                       should emphasize pedestrian use. Site
                       improvements, including brick walkways,
                       benches, landscaping and lighting should
                       be planned.

            B-2. Encourage the development     of future public
                 access and open space          through zoning
                 regulations and the development review
                 process.

                       Involve   the private sector in this
                       effort by providing incentives for the
                       inclusion of public access and open
                       space in private development projects.



                                                                               27


















                            B-3.  The City should take action to develop
                                  additional public access and open space on
                                  the waterfront,, particularly on the East
                                  Side.

                                       Public opinion strongly supports the
                                       development of additional facilities.
                                       70% of those responding to the public
                                       opinion survey favor public open space
                                       and waterfront parks, and 53% favor a
                                       linear public pathway along the
                                       waterfront.

                                       While Heritage Park provides these
                                       amenities on the West Side, there are no
                                       such facilities located on the East
                                       Side. '

                                       Removal of the railroad tracks to the
                                       south of the Belfast and Moosehead Lake
                                       Railroad yard will allow the development
                                       of a linear pedestrian pathway.

                            B-4.  Ensure adequate access to the harbor for
                                  commercial fishermen, the location of which
                                  shall be separated from recreational access
                                  facilities.

                                       There are approximately a dozen
                                       individuals who derive all of their
                                       personal income as commercial fishermen.

                                       While the commercial fishing industry in
                                       Belfast is not as significant as in
                                       other Maine coastal communities, it is
                                       important that the City retain the
                                       .availability of access for commercial
                                       fishermen.     Respondents to the public
                                       opinion survey overwhelmingly support
                                       the continuance of the industry within
                                       Belfast.




           28







                     A separate location for commercial
                     access to the harbor is necessary to
                     reduce conflicting use of the harbor
                     facilities between commercial fishing
                     and recreational user groups.
                     Commercial fishermen require adequate
                     parking area storage and staging areas,
                     and require moorings which are proximate
                     to these land facilities.      Currently,
                     the commercial fishermen are restricted
                     to the City landing. Here, competition
                     for parking space is a problem, as well
                     as competition for float space.   In the
                     summer of 1991, the Harbor Commission
                     and City Police established four parking
                     spaces at the City landing, reserved for
                     fishermen.      While improving the
                     situation, this solution does not
                     address all the needs described herein.


           C. PORT AAD HARBOR RESOURCES

           Polia:         To provide for maximum utilization
                          of the harbor for commercial and
                          recreational use while protecting
                          and improving water quality and
                          natural marine resources.

           Objectives:

           C-1. Plan for the long term implementation of
                physical harbor improvements to mitigate wind
                and wave action in order to increase the
                potential for marina development and moorage
                areas.


                   The current demand for moorings in Belfast
                   Harbor can be satisfied within the
                   existing mooring area.       There is no
                   waiting list for moorings; however, there
                   is a waiting list for boaters who wish to
                   relocate closer to the City landing.

                   Within the next several years, demand for
                   additional moorings can be met through
                   reorganization of mooring locations and by
                   utilization of two point moorings, and by
                   marina development on the shoreline.    The
                   Harbor Committee recently completed a
                   mooring grid plan which provides the basis
                   for mooring relocations.



                                                                         29









                                    With its elongated configuration and
                                    east-southeasterly orientation to
                                    Penobscot Bay, Belfast Harbor is subject
                                    to extreme wind and wave action in
                                    inclement weather conditions.     Physical
                                    barriers are designed-to mitigate these
                                    condition s.

                                    Market assessment and analysis concludes
                                    that marina development will likely
                                    serve as a catalyst for overall
                                    waterfront development activity.
                                    Physical barriers will improve
                                    conditions for marina development.

                                    Implementation of physical barriers
                                    requires innovative design practices in
                                    order to avoid adverse impacts upon
                                    natural marine resources.

                          C-2. Where environmental impacts nay be avoided,
                               increase moorage areas through dredging
                               activities.

                                    While the established policies promote
                                    maximum utilization of the harbor, it is
                                    equally important to respect the
                                    environmental integrity of natural
                                    marine resources.

                          C-3. Over time, the use of individual point
                               moorings should be decreased 'and more
                               efficient utilization of the harbor should be
                               implemented.

                                    A two point, float system can
                                    dramatically decrease the amount of
                                    water area consumed by a single vessel.
                                    As future demand for moorage increases,
                                    the density of boats within the harbor
                                    will require more efficient systems.

                          C-4. Continue to properly manage harbor resources
                               and maintain the fiscal self-sufficiency of
                               the harbor respective to municipal
                               expenditures.

                                    Maintain and, where warranted, expand
                                    the authority of the Harbor master and
                                    Harbor Advisory Committee as required to
                                    properly manage the harbor.



         30










                     The City should continually evaluate the
                     fiscal expenditures required for
                     maintenance and management of the harbor
                     and assess harbor use fees required to
                     support these expenses.

           C-5. Maintain and improve, where warranted, water
                quality conditions and the protection of
                natural marine resources.

                     Belfast Harbor and the Passagassawakeag
                     River support a variety of marine life
                     species which depend upon water quality
                     protection for their survival.

                     Shellfish beds which are presently
                     closed to harvesting due to pollution
                     represent a potential commercial and
                     recreational benefit to the community.

           D. WAICIPAL ACTION PM

           Policy    To promote the involvement of the City
                     of Belfast in the redevelopment of its
                     waterfront and harbor as the City must
                     play a key role in the short term and
                     future utilization of these resources.

           Objectives:

           D-1. Establish a mechanism for the City to provide
                initial and long term control within
                waterfront areas.

                     The City should  consider the immediate
                     establishment of a development
                     corporation as activity and change may
                     be imminent.

           D-2. The City should enact zoning provisions.which
                support policies and objectives respective to
                waterfront land use.

                     Belfast has the opportunity to control
                     the type of development which occurs on
                     the waterfront through the application
                     of zoning regulations designed to
                     promote specific land uses.


                                                                          31









                                    Zoning provisions include general city
                                    zoning codes, as well as State-mandated
                                    shoreland zoning standards.

                                    Specified land use types must be
                                    considered with -respect for economi-c
                                    viability in order to stimulate
                                    waterfront redevelopment.

                          D-.3- The City should provide adequate
                               infrastructure and, where. appropriate,
                               infrastructure improvements necessary to
                               support and stimulate economic growth in
                               waterfront areas.

                                    Infrastructure support includes sewer,
                                    water, and utility services, as well as
                                    streets, parking facilities, harbor
                                    access facilities, pedestrian sidewalks,
                                    and other functional requirements for
                                    land development.

                                    The City currently provides adequate
                                    parking facilities in waterfront areas,
                                    although competition for parking space
                                    at the City landing is problematic in
                                    summer months.    The City should not
                                    expand parking areas at the City landing
                                    (due to the resultant loss of valuable
                                    open space), but should plan for future
                                    parking areas in other locations.

                                    The amount of parking required in the
                                    future depends on several factors.
                                    current zoning provisions require new
                                    businesses to provide their own parking
                                    facilities; however, the City may waive
                                    or reduce parking requirements for new
                                    businesses which are water-dependent
                                    uses, or which provide public access or
                                    preserve views to the harbor. In this
                                    respect, the City should plan for areas.
                                    to absorb these parking needs, as well
                                    as needs derived by tourism in
                                    waterfront areas.

                                    In order to "shape" the direction of
                                    waterfront and harbor development, the
                                    City may prioritize infrastructure
                                    improvements in support of the desired
                                    future utilization of these resources.



          32







          D-4. Development and utilization of waterfront and
               harbor resources is a fluctuating and dynamic
               process.    Inasmuch, the City of Belfast
               should undertake an initial, as well as a
               long-term, commitment to monitor this process
               on an annual basis.     Over time, the City
               -should update its policies in accordance with
               fluctuating conditions and changing needs.












































                                                                         33




















          IMPLEMENTATION
                STRATEGY
  34

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                          ]INWWWAITATION STRATEGY

                          WRODUCTION

                          The implementation strategy is comprised of a
                          series of recommendations which are based upon the
                          analysis and policy development section of this
                          plan. The overall strategy is multifaceted as it
                          involves the participation of private landowners
                          and land developers, as well as the City itself.
                          Furthermore, the strategy provides a framework for
                          short-term redevelopment activity, as well as
                          long-term control over waterfront and harbor
                          utilization.      Finally, it is important to
                          recognize the context in which this plan has been
                          developed.

                          Accept ance of this plan does not ensure that the
                          City can begin to implement the recommendations
                          contained herein. The plan components must first
                          be scrutinized by the Belfast Comprehensive Plan
                          Committee. This Committee is currently developing
                          the State-mandated Comprehensive Plan, scheduled
                          for completion by 1992. As part of this process,
                          the Comprehensive Plan Committee may incorporate
                          or delete portions of the implementation strategy
                          presented in the following pages. Upon completion
                          of the City-wide Comprehensive Plan, zoning
                          ordinance recommendations and fiscal budget
                          expenditures will be further scrutinized prior to
                          implementation and adoption by the City.

                          RECOMIENI)ATIONS

                          Recommendations presented herein are made in
                          response to the policies. set forth within the
                          plan.    Each recommendation is correlated to a
                          specific objective established by the Waterfront
                          and Harbor Management Plan Committee.              In
                          addition, priorities have been established to
                          direct the implementation efforts by the City      of
                          Belfast.



          35















          Descriptive Summary or Recommendations

          1.   Create a Waterfront Re-Development
               Corporation to actively pursue the
               implementation of the Waterfront Plan:

               a.   Pursue funding and grants to facilitate
                    waterfront improvements.

               b.   Assist owners/prospective developers of
                    vacant waterfront parcels in the
                    redevelopment of these parcels.

                    Coordinate land/water issues with the
                    Harbor Advisory Committee.

               d.   Support commercial fishing industry.

               e.   maintain momentum and direction for
                    waterfront development.

          2.   Redefine existing waterfront Zone W-1 to
               include all waterfront property between Front
               Street and the harbor, *extending from
               Commercial Street to Old Route One Bridge.
               (See appendices for maps and zoning
               language.)

               a.   Development within this zone promotes
                    water-dependent or water-related uses,
                    however, permits additional uses in
                    order to stimulate economic
                    redevelopment.

               b.   Industrial uses are limited to the
                    Stinson Canning property and are
                    required to meet the definition of a
                    water-dependent use.

               C.   Architectural design    guidelines and
                    provisions for public access apply to
                    this zone.




                                                                        36










                          3.    Redefine existing waterfront Zone W-2 to
                                include all property between Front Street and
                                the DC, R1 and R2 zones. (See appendices for
                                maps and zoning langua ge.)

                                a.   Development within this zone is less
                                     restrictive than the W-1 Zone as
                                     water-dependent and water-related uses
                                     are not suitable.

                                b.   industrial uses are prohibited in this
                                     zone.


                                C.   Architectural design guidelines and
                                     provisions for public access apply to
                                     this zone.

                          4.    Retain the existing W-3 and W-4 zoning on the
                                East Side waterfront.     Add provisions for
                                public access and preservation of views (see
                                Appendices).

                          5.    Retain the existing R-2 and GP zoning on the
                                Passagassawakeag waterfront.    Add provisions
                                for public access and preservation of views
                                (see Appendices).

                          6.    Redefine Shoreland Zoning Districts and
                                regulations as follows:   (See appendices for
                                maps-and zoning language.)

                                Shoreland.Zones are proposed as follows (see
                                maps for district boundaries):

                                a.   CFMA -. Commercial Fisheries/Maritime
                                     Activities Zone.    This zone is a new
                                     recommended zone proposed to encourage
                                     marine related uses on the West side
                                     waterfront. The location of this zone
                                     is based upon waterfront and harbor
                                     conditions which are suitable for these
                                     uses.


                                b.   GD    General Development Zone.       This
                                     zone is mostly retained on the East   Side
                                     waterfront and on portions of the     West
                                     Side waterfront. This zone allows for
                                     mixed uses and is less restrictive than
                                     other shoreland zones with respect to
                                     property utilization.



          37








               C.    UR - Urban Residential Zone. This zone
                     is created to minimize the
                     non-conformance of existing intensively
                     developed residential property.      city
                     water and sewer service is required in
                     this district.

               d.    LR - Limited Residential Zone.       This
                     zone is mostly retained on portions of
                     the East and West Side waterfront in
                     areas where less intensive development
                     of the shoreline is appropriate with
                     respect to existing land use and natural
                     resources.


               e..   RP   Resource Protection Zone.       This
                     zone is mostly retained on the East Side
                     where development would adversely affect
                     water quality, productive habitat, or
                     scenic and natural areas.

           7.  Acquire the Penobscot Poultry Plant property.
               The City should pursue a community
               Development Block Grant (see funding
               assistance section) to assist in the purchase
               and demolition of the existing structures.
               Rationale for funding assistance may include
               the following:

               a.    The plant creates urban blight on the
                     waterfront,   inhibiting redevelopment
                     activity.

               b.    The plant poses potential environmental
                     hazards, including asbestos.

               C.    As time goes on, disposal of demolition
                     debris becomes increasingly difficult.

               d.    The City may provide municipal parking
                     on a portion of the property to
                     stimulate economic development of
                     adjacent parcels.

               After purchase of the property and demolition
               of the existing structures, the City should
               solicit development proposals from the
               private sector for redevelopment of the
               property with specifications and guidelines
               for development.   Future use of the property
               shall comply with the provisions of the
               proposed W-2 zoning district (see
               Appendices).



                                                                           38









                             8.  Implement Front Street Corridor Improvements,
                                 including paving, curbing, sidewalks, street
                                 trees, and lighting.

                             9.  Develop waterfront parks at the following
                                 locations:

                                 a. , Commercial Street at the waterfront.

                                 b.   Each side of old Route I Bridge.

                                 C.   On C. M. P.    land at Goose River
                                      impoundment basin.

                           10.   Implement a breakwater at the foot of
                                 Commercial Street to provide for public
                                 access and to increase harbor utilization.

                           11.   Implement a wave attention device at
                                 Patterson Point to increase harbor
                                 utilization.

                           12.   Develop mooring pool (motor boats only)
                                 beyond Route 1 overpass. Suction dredge this
                                 area.


                           13.   As required to improve efficient utilization
                                 of harbor moorage area, implement the use of
                                 two point float moorings.

                           14.   Establish a location for commercial fishermen
                                 separate from Town Landing.

                                 a.   A short-term location near the
                                      Weathervane or at Stinsons.         Provide
                                      parking for 10-15 vehicles and adequate
                                      storage/staging areas, as well as
                                      sufficient float space.            Mooring
                                      locations for commercial fishermen
                                      should be proximate to this facility.
                                      The City should investigate its apparent
                                      ownership of water frontage at the'
                                      Weathervane property in this process.

                                 b.   A long-term location between Belfast
                                      Boatyard and old bridge; consider
                                      additional location on East Side,
                                      perhaps near Youngs Lobster Co. and/or
                                      in association with wave attenuation
                                      device.




           39








           15. Rehabilitate old bridge for pedestrian/,
                bicycle access:

                a.   Update engineering study of bridge
                     condition. Close bridge if determined
                     unsafe for pedestrian use.

                b.   Implement short-term structural repairs.

                C.   Implement permanent structural repairs.

           16.  Develop Federal Street as the primary
                pedestrian route/link to waterfront,
                including paving, curbing, sidewalks, street
                trees and lighting.

           17.  Improve turning radius from Main Street
                turning left to Front Street.

           18.  Set aside municipal land for additional
                parking between municipal lot and treatment
                plant.   Develop parking in accordance with
                the demand for municipally controlled parking
                spaces. Provide access to Front Street for
                handicapped/elderly pedestrians. Incorporate
                "Pocket Parks" at Main Street and Front
                Street elevations.

           19.  Utilize City buildings at Heritage Park as
                follows:


                a.   Marine-related retail
                b.   Public restrooms and showers
                C.   Belfast Maritime Historical
                     Museum and Exhibits
                d.   Tourist information/direction
                e.   Chamber of Commerce


           20.  Remove railroad tracks south of the B & M L
                railroad yard and develop a pedestrian
                pathway.

           21.  Implement passive recreation improvements at
                Heritage Park, including walkways,
                landscaping and lighting.

           22.  In conjunction with Federal Street
                improvements, demolish the center building at
                Heritage Park to allow for a view corridor
                from Federal Street.    Develop an "arrival
                plaza" with pedestration, paving, seating,
                lighting, and informational signage.



                                                                          40








                         23.  Conduct an engineering study of the sewage
                              treatment plant facility to evaluate
                              alternatives for the reduction of odor
                              generated by the plant. Consider the use of
                              domed covers as a potential method.

                         24.  Conduct an engineering study to evaluate
                              potential demand for expansion of the sewage
                              treatment plant.   Consider alternative sites
                              for new treatment facilities.           Should
                              expansion be required at the existing site,
                              develop an expansion master plan which
                              incorporates recommendations contained
                              herein, respective to expansion of the
                              adjacent municipal parking lot and pedestrian
                              walkways to Front Street.


                         PlUORITIES AND FISCAL EXPENDITURES

                         This section of the plan organizes the
                         recommendations in terms of the applicable
                         objective relating to each alternative, the
                         general timeframe for implementation, and
                         projected fiscal expenditures.           Timeframe
                         categories include "immediate" (1-2 years), "short
                         term" (2-5 years), and "long-term" (5-10 years).


                         IMMEDIATE MIPLEMENTATION (1-2 Years)

                         Policy                                      Fiscal
                         Reference         Recommendation        Expenditure

                           D-1        1.   Establish Waterfront
                                           Redevelopment Corporation    N/A

                           A-2    2 - 5.   Implement Zoning
                           thru            Ordinance Revisions          N/A
                           A-9
                           and        6.   Shoreland Zoning             N/A
                           D-2             Revisions

                           A-5        7.   Acquire Penobscot     $500,000.00
                                           Poultry Property/
                                           Demolish Structures

                           D-3        8.   Implement Front       $250,000.00
                                           Street Improvements
                                           (1500 feet)



        41



















             A-1       19.  Utilize Heritage          N/A
                            Park Buildings
                            Per Recommendations

             D-3       23.  Study Odor Reduction $ 10,000.00
                            at Treatment Plant



          SHORT-TERM IMPLEMENTATION (2-5 Years)

          Policy                                     Fiscal
          Reference         Recommendation        Expenditure
             C-1       10.  Implement Commercial  $500"000.00
                            Street Pier

             C-3       13.  Implement Float           N/A
                            Mooring System

             D-4       14a. Establish Short-          N/A
                            Term Commercial
                            Fishing Location

             D-3       15a. Update Engineering    $ 25,000-00
                            Study of Old U. S.
                            Route One Bridge

             D-3       15b. Implement Short-      $200,000.00
                            Term Repairs to
                            Old Bridge

             B-1       21.  implement Passive     $100,000.00
                            Recreation
                            Improvements at
                            Heritage Park .

             D-3       24.  Study Treatment       $ 50,000.00
                            Plant Expansion
                            Alternatives



                                                                           42



















                            LONG-TERM IMPLEMENTATION (5-10 Years)

                            Policy                                         Fiscal
                            Reference           Recommendation          Expenditure

                              B-3           9.  Develop Waterfront      $250,000.00
                                                Parks

                              C-1         10.   Implement Wave          $500,000.00
                                                Attentuator at
                                                Patterson Point

                              C-2         12.   Develop Mooring         $150,000.00
                                                Pool Beyond
                                                Bridges

                              B-4         14b.  Establish Long-              N/A
                                                Term Commercial
                                                Fishing Location

                              D-3         15c.  Implement Permanent     $750,000.00
                                                Repairs to Old
                                                Bridge

                              D-3         16.   Develop Federal         $100,000.00
                                                Street Linkage
                                                (400 feet)
                              D-3         17.   Improve Turning:        $ 75,000.00
                                                Main Street to
                                                Front Street

                              D-3         18.   Expand Municipal        $250,000.00
                              B-3               Parking, Develop
                                                Pocket Parks

                              A-1         22.   Demolish Center         $ 15,000.00
                              D-3               Building at
                                                Heritage Park.



          43
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                                                                           NATURAL RESOURCES


                                                                                                                                         Floodplain Areas                                                                                                                                                                                                                                                                                           Slopes Exceeding 20 %


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         PROPOSED SHORELAND       ZONES

         LEGEND:
         CFMA Commercial Fisheries [Maritime Activities District
         GD_     General Development District
         LR      Limited Residential District
         RP      Resource Protection District
         UR      Urban Residential District








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                                          MUNICIPAL ACTION PLAN
                                         LEGEND:
                                                                        Pedestrian Park
                                               NMI                     Pedestrian                                               Bicycle Route
                                      0011Q                             Wave Attenuation







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             LEGEND:

                      Access site for Commercial Fisherman              Pedestrian Parks
                      Open Harbor. of Refuge                            Improve Treatment Plant  Appearance
                                         fit                            11)









            NMI=   1) Pedestrian Access Improvements                    Expand Public Parking At,ea
                      Improve Front St. as Waterfront Spine             Waterfront Redevelopment Zone
             01111[1'Breakwater from Commercial St.                     Extend Main   St. CBD to Waterfront







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        PROPOSED GENERALZONES


                 Waterf ront Zone 1            RI    Residential Zone I

                 Waterfront Zone 2                   Residential Z6 ne 2

          DC     Downtown Commercial Zone






                         TECHINICAL AND FEWICUL ASSISTANCE

                         TECHNICAL ASSISTANCE

                         Coastal communities working to protect water
                         dependent uses or develop - other strategies to
                         implement Maine's coastal Policies -can obtain
                         technical assistance from the coastal planning
                         staff at the Office of Comprehensive Planning,
                         Department of Economic and Community Development,
                         Station #130, Augusta, ME 04333. For information
                         or assistance, please contact Francine Rudoff,
                         Kirk Schlemmer, or Tamara Risser at 289-6800.
                         Additional assistance may be obtained from the
                         following organizations:

                         Waldo County opportunity Zone
                         67 Church Street
                         Belfast, ME 04915
                         Contact: Michael Bush at 338-1139

                         Eastern Mid-coast Planning Commission
                         9 Water Street
                         Rockland, ME 04841
                         Contact: Tom Ford at 594-2299

                         Other sources of technical assistance include the
                         following organizations:

                         Maine Coast Heritage Trust (MCHT)
                         P. 0. Box 416
                         Topsham, ME 04096
                         729-7366
                         or
                         P. 0. Box 426
                         Northeast Harbor, ME 04662
                         276-5156


                         MCHT promotes conservation of Maine's coastline
                         and islands by negotiating gifts of land and
                         easements to conservation organizations.        MCHT
                         offers professional advice and assistance to    land
                         owners, land trusts, and municipalities.

                         Maine Municipal Association (MMA)
                         Community Drive
                         Augusta, ME 04330
                         623-8428

                         MMA provides assistance to towns in developing
                         zoning ordinances,, local code enforcement and
                         legal affairs.










          Financial Assistance

          A number of sources also provide financial
          assistance to Maine communities to support
          projects which enhance opportunities for
          waterfront and harbor improvements.

          Coastal Planning Grants are available for
          municipal waterfront and harbor planning
          @ctivities.    These activities should result in
          implementation strategies to further Maine's
          Coastal Policies.        Contact the Office -of
          Comprehensive Planning, Department of Economic and
          Community Development, 289-6800.

          Coastal Implementation Grants are available for
          the development of zoning ordinances, harbor
          ordinances, detailed public access plans, and
          other implementation efforts.   Contact the Office
          of Comprehensive Planning, Department of Economic
          and Community Development, 289-6800.

          Community Revitalization Grants are available for
          downtown revitalization, housing rehabilitation
          public facility improvements, and other local
          programs that benefit low and moderate income
          people.

          For further information, contact the Office of
          Community Development, Department of Economic &
          Community Development, 289-6800.

          Land & Water conservation Fund Grants            are
          available to support the acquisition and/or
          development of outdoor recreation facilities,
          including waterfront parks.

          For further information, contact the Office of
          Comprehensive Planning, Department of Economic &
          Community Development, 289-6800.

          Boating Facilities Program award grants for the
          acquisition development and improvement of state,
          regional or local recreational boat access sites.
          Funds for the program are derived from the state
          gasoline tax.

          For further inf  'ormation, contact the Bureau of
          Parks & Recreation, Department of Conservation,
          289-3821*




















                          The Maine Department of Transportation may      have
                          funding available as MDOT has conducted a
                          State-wide study of port and harbor needs which
                          places an emphasis on funding projects not
                          traditionally funded by State and Federal
                          programs.   Contact MDOT, Division of Ports and
                          Marine Transportation, 289-2841.

                          The Maine Department of Environmental Protection
                          administers Section 205; water quality planning
                          grants for projects determining the nature, course
                          and extent of water pollution. A local match of
                          funds is not required, but may be helpful in the
                          approval process.     Contact the Maine D.E.P.,
                          289-3901.

                          The U. B. Army Corps of Engineers funds dredging
                          projects, but requires a local match.            For
                          Congressionally authorized maintenance dredge
                          projects, the Army Corps pays 100% of the cost of
                          dredging, but the local government is responsible
                          for locating, procuring and preparing the disposal
                          site.    For improvement projects (small-scale
                          navigational dredging projects that occur outside
                          of Congressional approval), the local government
                          must share the cost of dredging as well as locate,
                          procure and prepare the disposal site. Typically,
                          the local share of dredging costs is between 20%
                          and 50%, but it can be more. Contact the Maine
                          office at 623-8367.

                          The Economic Development Administration
                          administers public works grants, which in the past
                          have included commercial fishing piers.          The
                          limited financial resources of the agency may
                          preclude use of this funding course at this time.
                          Contact the EDA through the Eastern Maine
                          Development Corporation at 942-6389.






                                              PROPOSED ZONING UNGIAGE REMSIONS

                          Waterfront I - West Side Harbor

                          Purpose:

                          To promote, preserve andprotect water-dependent and
                          water-related uses which foster the maritime heritage of the
                          City of Belfast. This district is established due to its
                          suitability for uses which are dependent upon favorable
                          waterfront and harbor conditions. While this District
                          allows for diverse land uses which encourage economic
                          vitality to the waterfront, certain land uses which are more
                          suited to other locations within the City are prohibited.

                          1.      Preferred Uses within this zone include:

                                  a. *Water dependent uses, including marinas

                                  b. **Water related uses, including the following:

                                          1)      chandleries and sail lofts
                                          2)      boat building
                                          3)      boat sales and repair
                                          4)      aquariums
                                          5)      fish and shellfish sales
                                          6)      marine-oriented 'museum or education facility
                                          7)      fabrication, storage and repair of fishing
                                                  equipment

                          2.      Permitted       Uses with Planning Board Review:

                                  a.      Retail stores and restaurants

                                  b.      Professional offices

                                  C.      Public parks and open space

                                  d.      Municipal uses deemed necessary by the City
                                          Council but, prior to taking action thereon, the
                                          Council shall hold a public hearing for which 10
                                          days public notice shall be given.

                                  P.      Residential dwelling units (prohibited on the
                                          first floor).

                          3.      All   other uses are prohibited within this zone.

                          Those uses that require, for their primary purpose, location on submerged lands or require direct
                          access io, or location in, coastal waters end which therefore cannot be located away from these
                          waters. These uses include, but are not limited to, commercial and recreational fishing and boating
                          facilities, ffnfish and shellfish processing, storage and retail and wholesale marketing facilities,
                          dock and port facilities, shipyards and boat building facilities, marinas, navigation sides, basins
                          and channels, and uses which primarily provide general public access to marine or tidal waters.


                          Those uses which do not require direct access to, or Location in, coastal waters but whose primary
                          purpose is to support the successful functioning of water-dependent uses.







                    h.   industrial uses in buildings previously used for
                         industrial purposes provided that the proposed use
                         is water-dependent as defined herein.

               4.   Shoreland

                    The provisions of the Shoreland Zoning ordinance apply
                    to areas within 250 feet of the mean high water mark of
                    the Passagassawakeag River and Belfast Bay.

               5.   Standards

                    a.   The proposed use must be consistent with the
                         purpose of this District as stated above.

                    b.   Exceptions to the definitions of water-dependent
                         and water-related uses contained herein shall be
                         narrowly construed. The burden of proof shall be
                         placed upon the party proposing any such uses to
                         qualify the use as water-dependent or
                         water-related.

                    C.   The general standards of performance in Chapter
                         Two shall be observed.

                    d.   The following standards shall also apply:

                         Minimum lot size                10,000 square feet
                         Minimum lot frontage                50 feet
                         Maximum building height              35 feet
                         Minimum setback                     10 feet from
                                                                  each lot
                                                                 line

                    e.   The architectural design of new structures or
                         renovated structures or renovated structures shall
                         compliment the architectural heritage of Belfast.
                         Exterior facade materials prohibited include metal
                         siding, concrete and concrete block. Brick or
                         wooden clapboard facade materials are strongly
                         encouraged. Roof pitches shall be at lease 3 in
                         12 for all new structures.


               6.   Provisions for Water Dependent Uses, Water Related
                    Uses, Public Access and Viewing Areas

                    The Planning Board will consider the granting of
                    density bonuses and other incentives, such as setback
                    reductions, building height restrictions, and parking
                    requirements, for development projects which include
                    water dependent and water related uses, or which
                    provide for public access along the water, or which
                    preserve views from upland areas to the waterfront.






                    Consideration of density bonuses, setback reductions
                    and other development factors shall be subject-to the
                    requirements of the Shoreland Zoning ordinance and
                    State regulations administered by the Department of
                    Environmental Protection.

                    a.   Under the provisions of Chapter One, Section IX of
                         this Ordinance (Contract Zoning), the Planning
                         Board may grant additional incentives to
                         applicants proposing water dependent uses, water
                         related uses, or public access to and/or
                         preserving views to the harbor. It shall be the
                         responsibility of the applicant to propose such
                         incentives. The authority to grant such
                         incentives shall be vested in the City of Belfast
                         Planning Board, in accordance with the contract
                         zoning provisions of the Ordinance.







                           PROPOSED Z01%1NG 1ANGUAGE REVISIONS


               Mlatedront 11 - Downto"

               1.   Permitted Uses

                    a.   Office complexes

                    b.   Residential, excluding manufactured housing units.

                    C.   Marine related activities, including boat storage.

                    d.   Municipal uses deemed necessary by the City
                         Council, but, prior to taking hereon, the Council
                         shall hold a public hearing for which 10 days
                         public notice shall be given.

                    e.   School, day nursery, municipal building or use,
                         public park, open space, institution of an
                         educational, religious, philanthropic, fraternal,
                         political or social nature.

                    f.   Professional and business office.

                    g.   Hotels and motels.

                    h.   Retail stores and restaurants.

                    i.   Wholesale business and services.

                    j.   Public and private educational, assembly places
                         and medical facilities.

                    k.   Craft production.

                    1.   Accessory uses and buildings, including yard sales
                         on no more that 10 days in any calendar year.

               2.   Permitted Uses with Planning Board Review

                    a.   Non-industrial uses in business larger than a
                         25,000 square feet and previously used for
                         industrial purposes and subject to the standards
                         defined herein.

                    b.   Planned unit development.

                    C.   Non-municipal public and quasi-public uses.

               3.   Shoreland

                    The provisions of the Shoreland Zoning Ordinance apply
                    to areas within 250 feet of the mean high water mark of
                    the passagassawakeag River and Belfast Bay.









                4.   Standards

                     a.   The general standards of performance in Chapter
                          Two shall be observed.

                     b.   The following standards shall also apply:

                          minimum lot size                  10,000 square feet
                          Minimum lot frontage                  50 feet
                          Maximum building height                35 feet
                          Minimum setback                        10 feet from
                                                                   each lot
                                                                   line

                     C.   The architectural design of new structures or
                          renovated structures shall compliment the
                          architectural heritage of Belfast. Exterior
                          facade materials prohibited include metal siding,
                          concrete and concrete block. Brick or wooden
                          clapboard facade materials are strongly
                          encouraged. Roof pitches shall be at lease 3 in
                          12 for all new structures.

                5.   Planned Unit Developments

                     In the case of planned unit development, the above
                     standards.may be modified inaccordance with the
                     special provisions of Chapter Two, Section V of this
                     ordinance.

                6.   Provisions for Public Access and Viewing Areas

                     The Planning Board will consider the granting of
                     density bonuses and other incentives, such as parking
                     requirements, for development projects which provide
                     for public access along the water and which preserve
                     views from upland areas to the waterfront, in
                     accordance with Chapter 1, Section IX of this
                     ordinance.

                     Consideration of density bonuses, setback reductions
                     and other development factors shall be subject to the
                     requirements of the Shoreland Zoning Ordinance and
                     State regulations administered by the Department of
                     Environmental Protection.

                     a.   Under the provisions of Chapter One, Section IX of
                          this Ordinance (Contract Zoning), the Planning
                          Board may grant additional incentives to
                          applicants proposing water dependent uses, water
                          related uses, or public access to and/or
                          preserving views to the harbor. It shall be the
                          responsibility of the applicant to propose such
                          incentives. The authority to grant such
                          incentives shall be vested in the City of Belfast
                          Planning Board, in accordance with the contract
                          zoning provisions of the Ordinance.








                             PROPOSED ZONING WGUAGE REVISIONS

                Waterfront III

                WaterCront IV

                Residential 11

                General Purpose

                Add the following to "Standards" section of existing
                Ordinance:

                6.   Provisions for Water Dependent Uses, Water Related
                     Uses, Public Access and Viewing Areas

                     The Planning Board will consider the granting of
                     density bonuses and other incentives, such as setback
                     reductions, building height restrictions, and parking
                     requirements, for development projects which include
                     water dependent and water related uses, or which
                     provide for public access along the water, or which
                     preserve views from upland areas to the waterfront.

                     Consideration of density bonuses, setback reductions
                     and other development factors shall be subject to the
                     requirements of the Shoreland Zoning Ordinance and
                     State regulations administered by the Department of
                     Environmental Protection.

                     a.   Under the provisions of Chapter One, Section IX of
                          this Ordinance (Contract Zoning), the Planning
                          Board may grant additional incentives to
                          applicants proposing water dependent uses, water
                          related uses, or public access to and/or
                          preserving views to the harbor. It shall be the
                          responsibility of the applicant to propose such
                          incentives. The authority to grant such
                          incentives shall be vested in the City of Belfast
                          Planning Board, in accordance with the contract
                          zoning provisions of the Ordinance.





                                    Public Opinion Survey

                                      ClW OF BEIFAST
                            Harbor and Mlaterft-ont Management Plan
                                         April, 1991


           The City of Belfast has retained a planning consultant to prepare
           this study and has established a Harbor and Waterfront Management
           Plan Committee to direct the consultant. The Committee is
           interested in obtaining public opinion on issues to be addressed
           by this study and has distributed this survey to all City
           residents. Please take the time to respond to the questions
           herein and feel free to volunteer additional comments.

           The Committee wishes to receive all survey responses by May 1,
           1991. Thank you for your interest and participation.
           Back=ound Information:

            1. Where do you live in Belfast?

                   Various locations



            2.  A.100% Permanent Resident       B. 0%   Seasonal Resident

            3.  A. 91% Own Property      B. 8% Rent Property       C. 1% Both
                (If both, please respond to   survey as a property owner.)

            4.  My property is:

                A.-869- Residential       C. 0% Industrial
                     .k
                B. 10% Commercial         D.   4% Undeveloped
                                          E.. 0% Other (Specify:

            5. My property is:

                A.lVi On the waterfront   B.67% Not on the waterfront C.15% Both
                (If both, please respond  to survey respective to waterfront
                property.)
           Study Area lAnd Use:

                The map below depicts the study area for this planning
                effort. The questions following pertain to your opinion of
                land uses on both the EAST side and WEST side of the harbor:







              6. Please indicate your response to present and possible land
                 uses on the EAST side and WEST side of the harbor:



                                           AST SIDE              WEST SIDE
                 PERCENTAGE          A.      B. JOC: No       A     B      C. No
                                    Favor 0 pose pinion F v*         @sejopinion
                 RESPONSES:                  p               a orlopp

           6.1   Multi-Family       A. S8 B.  27 C. IS     A. 3S B. 41 C. 24
                 Housing

           6.2   Restaurants        A. S6  B. 33  C. 11    A. 72 B. 22 C. 6

           6.3   Retail Stores      A. S6  B. 38  C. 6     A. 62 B. 26 C._12
                 (Non-marine
                 related)

           6.4   Retail Stores      A. 79  B., 20 C. I     A. 88 B. 6 C. 6
                 (Marine
                 related)

           6.5   Professional       A. S6  B. _23 C. 21    A. 50 B. 29 C. 21
                 Offices


           6.6   Marinas            A. 76  B. 12  C. 12    A. 73 B. 14 C. 13

           6.7   Boat Building      A. 82  B. 10  C. a     A. 76 B. 12 C. 12
                 & Repair

           6.8   Boat Storage       A. 67  B. 21  C. 12    A. 53 B. 24 C. 23

           6.9   Commercial         A. SS  B. 14  C. I     A. 82 B. I C. 17
                 Fishing
                 Support
                 Facilities

           6.10  Hotels, Motels     A. 56  B. 26  C. IS    A.-S6 B. 24 C._20

           6,11  Bed &              A. 6S  B. 19  C. 16    A. 65 B. 19 C. 16
                 Breakfasts


           6.12  Industrial         A. 36  B. S6  C. 8     A. 39 B. SO C. 11
                 (non marine
                 related)

           6.13  Industrial         A. S6  B. 32  C._12    A. S9 B. 22 C. 19
                 (marine
                 related)

           6.14  Sewage             A. 12  B. 76  C. 12    A. 22 B. 67 C. 11
                 Treatment Plant

           6.15  Public open        A. 79  B. IS  C. 6     A. 79 B. 12 C. 9
                 Space/
                 Waterfront
                 Parks
                                          E






           7.    Would you support zoning amendments which would prohibit
                 land uses which are not water-dependent uses?

                 A. 27    Yes         B. 65     No      C.    6   Undecided

           8.    Would you support waterfront land uses which are not
                 water-dependent provided that these uses are compatible with
                 and do not interfere with water-dependent uses?

                 A. 67    Yes         B. 27     No      C.    6   Undecided

           9.    Would you support zoning amendments which would require that
                 new waterfront developments are architecturally compatible
                 with existing buildings on Main Street?

                 A. 3S    Yes         B. 47     No      C. is     Undecided

           10.   Would you support the promotion   of increased tourism
                 specific to waterfront areas and redevelopment efforts?

                 A. 56    Yes         B. 35     No      C.    9   Undecided

           11.   Do you feel that additional public access to waterfront
                 areas is needed at this time?

                 A. 53    Yes         B.  38    No      C.    9   Undecided

           12.   Do you feel that public  open space/waterfront parks should
                 be promoted in planning  for the future of waterfront areas?

                 A. -71   Yes         B.  IS    No      C.    I   Undecided

           13.   Would you favor a linear public   pathway  along the
                 waterfront?


                 A. 53    Yes         B. 36     No      C.    11  Undecided

           Harbor Facilities

           14.   Please note the adequacy of existing facilities at the City
                 landing:

                 PERCENTAGE RESPONSE          A. Good    B. Poor    C. Undecided
                 14.1 Car Parking                  43         43            14

                 14.2 Boat Trailer Parking         59          9            -32

                 14.3 Launch Ramps                 69         20            11

                 14.4 Float Space                  so         29            -21

                 14.5 Skiff Space                  32         38            30

                 14.6 Water Depth                  53         21            -26

                 14.7 General Safety               68         15            17

                 14.8 Public Restrooms             72         16            12







         15. Do you feel that navigation within the harbor is adequate?

             A. 47    Yes     B. 24   NO     C. 29. Undecided


         16. Is the present Harbor Ordinance satisfactory'.

             A. 29    Yes     B. 24   No     C. 47  Undecided


         17. Belfast has conducted numerous waterfront studies in recent
             years. In the space provided below please indicate your
             general comments about the waterfront and harbor areas and
             what you think this planning effort should.accomplish:

                 Prohibit industrial uses - no exceptions (4)

                 Support industrial uses (2)

                 Promote mixed use development approach (4)

                 Promote tourism development (2)

                 Support commercial fishing activity (4)

                 Support marina development (2)

                 Provide tax incentives for waterfront development

                 No 'more taxes for waterfront development (2)

                 Harbor users should pay for harbor development/
                     maintenance (2)

                 Plan for increased public access and open space (6)

                 Continue operation of the railroad (4)

                 Return Greyhound bus service (2)

                 Clean up trash in waterfront/downtown

                 Improve road conditions and access

                 Develop waterfront promenade from Commercial Street
                     to bridge (3)

                 improve condition of old Route 1 bridge (3)

                 Separate management of City Landing from
                     Harbor Commission

                 Belfast should not become another Camden


               Numbers indicate multiple responses by survey respondents




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                          1.               Introduction:

                                           The Comprehensive Planning and Land Use Regulation Act (30-A M.R.S.A.
                          Sec.             4301 et seq., hereafter, the Act) requires each municipality in the
                          state, except those municipalities within the jurisdiction of the Maine
                          Land Use Regulation Commission, to develop a local growth management
                          program. Under the Act, a local growth m                                                                                                                     .anagement program is comprised
                          of the following:

                                           a)                 a comprehensive plan that complies with the provisions of
                                                              the Act, and

                                           b)                 an implementation program that is consistent with a
                                                              complying comprehensive plan.

                                           Having submitted your comprehensive plan for state review and
                          comment, it is time to begin focusing your efforts on the preparation of
                          an implementation                                               '   program that will enable you to achieve the goals and
                          strategies set forth in that plan.

                                           As was the case in the preparation of your comprehensive p                                                                                                                                                                       lan, the
                          Office of Comprehensive Planning (hereafter, the Office) is prepared to
                          offer technical and financial assistance as you develop your
                          implementation program. These guidelines are designed to provide you with
                          information necessary to access this assistance. The following section
                          (Section II) describes the Act's requirements for a local implementation
                          program. Section III outlines the state funded and administered
                          implementation-grant program. Section IV outlines.the federally funded
                          coastal management grant program, a supplementar@ assistance program
                          available to coastal municipalities.


                          II. Local Implementation Program:

                                           In order for your local growth                                                                                                                 management program to be
                          complete and effective, the comprehensive plan you have developed must be
                          implemented through the application of specific policies, programs,
                          regulations, ordinances, and other municipal actions. The mechanism by
                          which the implementation strategies identified in your plan are to be



                          Office of Comprehensive Planning                                                                                                           -I-








      achieved is known as the implementation program. At a minimum, the Act
      requires that your implementation program include the adoption of a new or
      amended zoning ordinance that is consistent with your comprehensive plan.
      However, your implementation program may be much more encompassing and in
      addition to a zoning ordinance may include activities such as the
      development of a capital improvement program, ordinances and regulations
      to guide site reviews of development projects, housing and economic
      development programs or initiatives, community land banks or land trusts,
      or interlocal Agreements designed to promote local and regional policies.
      The Office encourages you to be creative in the implementation of your
      comprehensive plan.

           [FOR COASTAL XUNICIPALITIES] Local implementation programs developed
      by coastal municipalities will also consist of policies, programs,
      ordinances, regulations, and other activities that focus on the use and
      management of coastal resources. Under the Act, coastal municipalities
      are required to develop local policies and implementation strategies that
      specify the approaches that will be taken to address Maine's nine Coastal
      Management Policies. Moreover, the Act explicitly calls for the
      development of implementation strategies that ensure the preservation of
      @ccess to coastal waters and that discourage new development*that is
      incompatible with uses related to the marine resources industry. Thus,
      implementation programs for coastal municipalities may include, for
      example, the establishment of special waterfront zoning districts,
      development of a harbor ordinance, or preparation of a public access plan.


      III. Implementation Grant Program:

           The implementation grant program is a state administered,
      participative grant funding program (up to 25% of the project cost must be
      provided by the municipality) for the development and adoption of
      implementation strategies identified in your comprehensive plan, provided
      that your plan has been determined to be consistent with the Act. The
      following parameters have been established for the administration of this
      program.

           A.   Eligible Applicants: All municipalities that have
                submitted a comprehensive plan for review by-the office are
                eligible to apply for an implementation'grant. Although
                grant applications will be accepted and pibcessed-prior to
                local adoption of a plan, no payment will'be made prior to
                the local adoption of a consistent plant,

           B.   Maximum Grant Amount: The maximum state share available to
                each applicant is $12,500. Dependent upon the amount of
                state assistance received, the required local match will be
                0% (for requests of $2,,500 or less) or 33% of the state
                funds requested in excess of $2,500.






      Office of Comprehensive Planning       2-








                  Grant Amount                   @ocal      Match       Recruired


                 $     0 - $ 2,,500               0%                        $0

                 $2,501 - $12,500                33%       $      .33 - $3,333


            C.   Number of Applications per    municipality: The program is
                 designed to provide each eligible municipality with I
                 implementation grant.

            D.   Reimbursement of Eligible Costs: You may be reimbursed for
                 eligible costs incurred after the date of your plan
                 submission. You should, however, be prudent in incurring
                 costs prior to receiving written comments on your plan from
                 the Office. The written comments received will indicate
                 whether your plan is consistent with the A        'ct or what
                 additional actions may be necessary to make it consistent.
                  ecall from the introduction to this s-ection that
                 implementation grants can only be used to carry out the
                 Implementation Strategies Section of a consistent plan.
                 Therefore, a town would not want to invest a lot of time,
                 energy, and finances in anticipation of reimbursement, to
                 establish an implementation program for a plan which is not
                 consistent with the Act. Municipalities that incur costs
                 prior to the adoption of a consistent plan do so at the
                 risk of not being reimbursed.

            E.   Eligible Costs: As provided for in the Act, implementation
                 grants can be used for costs directly related to the
                 preparation of policies, programs, and land use ordinances
                 directly related to the implementation of a consistent
                 plan. This makes these funds available for a variety of
                 different purposes. For example, you may want to hire or
                 retain legal or other professional services to amend or
                 develop a zoning ordinance or capital improvements program.
                 Or perhaps you and a neighboring community could use your
                 implementation grants to establish an interlocial-agreement
                 instituting procedures for joint planning board reviews of
                 large subdivisions impacting a shared resource or-facility.'
                 At a  minimum, in order for a cost to be eligible it must
                 have  been incurred:

                 3.)   in the preparation of a,program, policy, or
                       ordinance designed to carry out the
                       intent of the Implementation Strategies Section
                       of a consistent plan, and

                 2)    after the plan's submittal to the Office for
                       review and comment.




       Office of Comprehensive Planning        -3-








                 Please keep in mind that the implementation grant you may
                 receive is intended to assist you in establishing an
                 implementation program.    It is not intended to finance
                 the ongoing operation of such a program, and therefore
                 recurring operational or   maintenance costs will not be
                 considered eligible. It    is your responsibility as the
                 applicant municipality to document that the costs
                 associated with the proposed activities are eligible and
                 that these activities will carry out the intent of the
                 Implementation Strategies Section of the your comprehensive
                 plan.

           F.    Application Procedures: An eligible municipality wishing
                 to apply for an implementation grant must fill out the
                 required application materials as provided by the of f ice.
                 This will include a narrative description of the activities
                 to be undertaken, documentation that the proposed
                 activities are consistent with the intent of
                 the Implementation Strategies Section of the applicant's
                 comprehensive plan, an itemized cost schedule for each
                 activity to be undertaken, and documentation that the costs
                 are eligible.

           G     Payment Procedures: Upon signing a contract with the
                 Office and adopting your plan locally, you will be able to
                 submit a request for payment for all or part of the
                 eligible costs. No more than two requests for payment will
                 be processed for each implementation grant. The first of
                 these requests for payment may not exceed 90% of state
                 share. Each request for payment must be accompanied by a
                 narrative description'of the work in progress. in
                 addition, the final request for payment must include a copy
                 of the completed activities. it is not necessary to submit
                 invoices with requests for payment. Invoices must,
                 however, be kept on file by the town.

           H.    Local Approval for Funding: There are several local
                 approvals which must be in place prior to yo  'ur receiving
                 implementation grant funds. These include,the following:
                 I    Approval for the appropriation of",your local
                      share, if any

                 2)   Pursuant to 30-A, MRSA, Section   5682,, approval
                      for the acceptance of State funds, and

                 3)   Authorization for your town officials   to enter
                      into a contract with the State.

                 Each of these approvals must be given by the I-ocal
                 legislative action appropriate to your community, either a
                 town warrant-article or a council action. These approvals



      Office of Comprehensive Planning      -4-









                 can be issued by a single legislative vote incorporating
                 all three approvals, or by a series of legislative votes,
                 each one specific to one of the approvals listed above. in
                 addition, the Town's approval for the acceptance of State
                 funds must be on file with the Department of Finance in
                 order for-the Office to process grant payments.

            1.   Role of the Regional Councils: Your regional council
                 may be available to assist you in the preparation of your
                 implementation programs. You should contact your regional
                 council to determine what assistance they are able to
                 provide in regard to your implementation program.

            J.   Hiring Consultants: Project'funds (state and local share)
                 may be used to hire consultants to assist you in developing
                 your implementation program. As was the case with your
                 planning grant, if you plan to hire a consultant for more
                 than $1,200, you must do so by contract and preferably
                 through a competitive selection process. You must send a
                 copy of any anticipated subcontract to the office for
                 review and comment prior to its execution. In obtaining
                 the services of a consultant, one of the following 3
                 approaches should be adhered,to:

                 a)   Request for Proposal,

                 b)   Request for Qualifications, or

                 C)   Sole-Source Procurement.

                 Refer to your Planning Grant Guidelines or contact the
                 Office for information regarding these approaches to hiring
                 a consultant.

            K.   Record Keeping: The Office expects you to organize and
                 keep all records, documents, reports, invoices, letters, or
                 other material relating to the development of your
                 implementation program. It is advisable to maintain a file
                 of meeting minutes, advertisements of public meetings, and
                 correspondence with your regional council,' this Office, and
                 consultants. These files shall be available at reasonable
                 times for reviewl inspection, or audit by State personnel
                 and other personnel duly authorized by this@office.


       IV. Coastal Management Grant Program:

            To assist each coastal municipality with implementation of the
       coastal elements of its comprehensive plan, the Office has established a
       federally funded coastal management grant program. Like the state funded
       implementation grant program, funds are available only if a local



       Office of Comprebensive Planning      -5-









      comprehensive plan has been determined to be consistent with the Act.
      Cost sharing for the coastal management grant program will be on an equal
      basis (50% federal/50% local share). The following parameters have been
      established for the administration of this program.

           A.    Eligible Applicants: All coastal municipalities that have
                 submitted a comprehensive plan for review by the Office are
                 eligible to apply for a coastal implementation grant.
                 Although grant applications will be accepted and processed
                 prior to local adoption of a plan, no payment will be made
                 prior to the local adoption of a consistent plan.

           B.    Maximum Grant Amount: The maximum,federal share available
                 to each applicant is $5000. The required local match will
                 be 50% Of the total project cost. Thus, for example, a
                 $5000 federal grant would be matched with $5000 of local
                 funds for a total project cost of $10,000.

           C.    Number of Applications per Municipality: The program is
                 designed to provide each eligible municipality with one
                 coastal management grant.

           D.    Reimbursement of Eligible Costs: Same as Section III (D)
                 for implementation grant program.

           E.    Eligible Costs: Coastal management grants can be used for
                 costs related to the preparation of policies, programs, and
                 land use ordinances directly related to the implementation
                 of the coastal elements of a consistent plan. The Maine
                 Coastal Program, together with the federal Office of Ocean
                 and Coastal Resource Management, have identified four high
                 priority implementation areas:

                    the development or improvement of local zoning or
                    other land use ordinances to address coastal
                    issues, such as protecting water dependent uses,
                    encouraging public access to coastal waters, or
                    protecting marine water quality;

                    the development of a    *local harbor' ordinance
                    consistent with Title 38 of the Mal"he Revised
                    Statutes Annotated;

                    the development of a local harbor and waterfront
                    management plan, including a mooring plan; and
                    the development of a detailed public access plan.

                 [Note: Municipalities that accept coastal management
                 grant funds for the preparation of a harbor plan or
                 ordinance will be required to consider the
                 establishment of a mooring allocation policy that does



      office of Comprehensive Planning      -6-








                not discriminate based on residency status.
                Municipalities may, however, charge higher fees to
                nonresidents, limit boat size in certain areas, and
                favor certain types of uses (e.g. commercial
                f ishing) . ]

                While the office recognizes that each-comprehensive
                plan will contain its own unique set-of implementation
                strategies and priorities, we strongly encourage
                coastal municipalities to use coastal management grant
                funds to address one or more of these four important
                areas. If, however, an applicant can demonstrate that
                these four areas have been adequately addressed or are
                not relevant, the municipality can use coastal
                management grant funds to work on other pieces of its
                implementation strategy related to Maine's Coastal
                Policies. Coastal municipalities are also encouraged
                to join together to address shared resources, such as
                a harbor, river, or bay.

                As with implementation grants, in order for a cost to
                be eligible, it must have been incurred after the
                plan's submittal to the Office for review and comment.
                In addition, coastal management grants are not
                intended to finance the ongoing operation of an
                implementation program; therefore, recurring
                operational or maintenance costs will not be
                considered eligible.

           F.   Application Procedures: An eligible coastal municipality
                wishing to apply for a coastal management grant must fill
                out the required application materials provided by the
                Office. This will include a narrative description of the
                activities to be undertaken, documentation that the
                proposed activities are consistent with the intent of
                coastal implementation strategy elements of the applicant's
                comprehensive plan, an itemized cost schedule for each
                activity to be undertaken, and documentation that the costs
                are eligible. if proposed activities are not related to
                the four priority areas listed in section IV(E) above, the
                applicant must demonstrate that these-areas bave been
                adequately addressed or are not relevant.

                Municipal officials are encouraged to contact Coastal
                Program staff at the office to discuss potential coastal
                management activities prior to submitting an application.
                The   Office has worked with many coastal municipalities on
                waterfront zoning, harbor management and public_access
                projects and can assist you with the preparation of a grant
                application.





      Office of Comprebensive Planning      -7-









            G     Payment Procedures: Same as Section III(G) for
                  implementation grant program.

            X.    Local Approval for Funding: Same as Section III(H) for
                  implementation grant program,   except that the municipality
                  should approve the acceptance  of federal funds as well.

            1.    Role of the Regional Councils: Same as section III(I) for
                  implementation grant program.

            J.    Hiring Consultants: Same as section III(J) for
                  implementation grant program.

            X.    Record Keeping: Same as section III(K) for implementation
                  grant program.


       V.   Sample Warrant Article/Resolution:

            As described in Section H above, prior to receiving an irplementati    on
       qrant, your municipal legislative body must vote to accept these funds.
       Provided below and on the next page are a sample warrant article and
       resolution which you can use as a basis for your article/resolution.



                                SAMPLE WARRANT ARTICLE
               TOWN MEETING ACCEPTANCE OF IMPLEMENTATION GRANT FUNDS

       Art.         Shall the town vote to accept Implementation Grant funds       as
       provided by the Maine State-Legislature [or the Maine Coastal      *Program of
       the Department of Economic and Community Development], to raise the local
       funds required as a match to the grant, to appropriate the grant and
       required local matching funds for the development of an implementation
       program pursuant to the Comprehensive Planning and Land Use Regulation
       Act, to authorize the selectmen to contract with the'State Department of
       Economic and Community Development for the grant, and to authorize the
       selectmen to contract, as necessary, for materials and services needed to
       achieve the purposes of the grant?

       INFORMATION:     Estimate amount of grant:

                        Estimated amount of local match:





                                If the town does not plan to raise new funds for
       the local match, but rather plans to borrow the necessary funds or to
       transfer the necessary funds from an existing account, it should replace
       the word "raise" with "borrow" or "transfer from existing accounts."



       Office of comprehensive Planning











                                  SAMPLE RESOLUTION
                TOWN COUNCIL ACCEPTANCE OF IMPLEMENTATION GRANT rUN'DS

      WHEREAS the Maine State Legislature, through enactment of the
      Comprehensive Planning and Land Use Regulation Act, has recognized that
      local comprehensive planning is necessary to guide the future growth and
      development of Maine municipalities so as to maintain and enhance the
      quality of life for Maine citizens, and has established programs to
      financially assist local comprehensive planning efforts,, and

      WHEREAS the Office of Comprehensive Planning, within the State Department
      of Economic and Community Development, has offered a matching grant to the
      Town of                      to assist the Town's development of an
      implementation program in accordance with the Comprehensive Planning and
      Land Use Regulation Act,

      NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of
      that the Council authorizes the Town Manager to accept an Implementation
      Grant of $           as provided by the Maine State Legislature [or a
      Coastal Management Grant as provided by the Maine Coastal Program of the
      Department of Economic and Community Development], raise $ as the
      required local match to the grant, appropriate the grant and required
      local matching funds for the development of an implementation plan
      pursuant to the Comprehensive Planning and Land Use Regulation Act,
      contract with the State Department of Economic and Community Development
      for the grant, and contract, as necessary, for materials and services
      needed to achieve the purposes of the grant.
      This' the     day of                   19















                              If the town does not plan to  raise new funds for
      the local match, but rather plans to borrow the necessary funds or to
      transfer the necessary funds from an existing account, it should replace
      the word "raise,' with "borrow" or "transfer from existing accounts."



      Office of Comprehensive Planning     -9-

























                                  Belfast Waterfront Study
                                       Potential Uses








                                        Prepared for

                                Belfast Waterfront Committee
                                            and
                             The Waldo County Opportunity Zone





                                        Prepared by

                                  Market Decisions, Inc.
                                       P.O. Box 2,414
                              South Portland, ME 04116-2414




                                      September 1991











                                   Table of Contents


           Section                                                        Page

           Executive Summary

           Introductioni


           The Belfast Labor Market Area                                     2


           The Marina Market Area                                            9

           Marina Demand Potential                                         14

           Marine Related Retail Potential                                 19

           Hotel Potential                                                 21

           Office Space Potential                                          31








                                              MARKET
                                              DECISIONS

                                              Re,warch S Planning



                                    EXECUTIVE SUMMARY


                Market Decisions, Inc.'s role in the development of the plan
           was  to provide a brief overview of the market supports for a
           limited number of uses as they related to the waterfront
           redevelopment. The four types of development that were analyzed
           included:

                1)   Marina
                2)   Marine related retail
                3)   Hotel
                4)   office

                The market overview for each use included:

                1)   identification of market area
                2)   Demographic and economic overview
                3)   Demand analysis of potential market supports

                The  overview does not include a detailed evaluation of the
           competitive environment with respect to each use.         Therefore,
           though the demand analysis may indicate the overall market for a
           use, we cannot determine to what extent that demand is currently
           being satisfied by comparable facilities in the Belfast area.
           Because a comprehensive market study was not conducted for each
           use, definitive conclusions and recommendations concerning the four
           different uses, therefore, cannot be determined.

           Marina Potential

                Based on the trade area identified in the study by Market
           Decisions, there are estimated market supports for approximately
           100 marina slips in Belfast.    It is important to note that this
           estimate of demand is a "ballpark" figure based on available
           official data sources and extrapolating data from previous marina
           market studies conducted by Market Decisions in the mid-coast area.
           Since no survey of boat owners has been conducted to measure
           specific interest in Belfast Harbor, it is difficult to determine
           demand with a high degree of accuracy. However, Market Decisions
           believes that the analysis does provide an order of magnitude of
           the demand potential for the development of a marina in Belfast.
           Market Decisions cautions that previous marina studies have
           indicated a price sensitivity with respect to slip rents in the
           mid-coast area.     This sensitivity stems from, in part, the
           economics of the area and a loyalty of boat owners to inexpensive
           moorings at $30 (local) and $90 (nonresident) per season.

                Market Decisions recommends that a prerequisite of the
           development of a marina be a       comprehensive market study to



    22Cwtage Rd./P.0. Box 2414 South Portland, Maine 04116-2414 (207) 799-2226








          determine (1) cost analysis of a marina,       (2) a more specif ic
          determination of demand for slips in Belfast Harbor, and (3) the
          price sensitivity to those slips.

               Market Decisions recommends that the City of Belfast pursue a
          private developer for a marina project. Of the four uses analyzed,
          we believe this to be the best use alternative. A marina project
          should serve as a catalyst for the long-term overall development
          strategy of the waterfront.

          Marine Related Retail

               Much of the supply needs of boat owners in the Belfast area
          are currently being served by area marine retail stores such as
          Hamilton Marine in Searsport, the largest marine retail store north
          of Boston.

               Market Decisions believes that the marine retail use poses
          somewhat of a "chicken and egg" dilemma.   on one hand, the size and
          range of supplies offered by a marine store will be directly
          related to the size of the marina, including the number of boats in
          slips and on moorings as well as the number of transient boats
          using Belfast as a stopover point. The transient boat owner will
          have the greatest influence on the range of supplies to be offered.
          The other factor in the dilemma is that marine supplies must be
          available when the marina opens.

               Therefore, Market Decisions recommends that a marine supply
          store that sells a limited range of items be part of the overall
          marina development plan. Though most of the local boat owners will
          choose to shop at Hamilton Marine (or one of the other marine
          retail establishments in the mid-coast region) to purchase a
          majority of their supplies, a marine store on the waterfront can
          serve to fill their immediate demands. Any marine retail activity
          should position itself and provide for flexibility with respect to
          providing a range of supplies demanded by transient boat traffic.

          Hotel Potential

               Based on the trade area identified, in the market study,
          indications are that the market supports do not exist at this time
          for a moderate size (40 - 50 room) hotel on the Belfast waterfront.
          The demand for transient rooms is generated by two broad markets:
          leisure or pleasure travel and business travel (including
          conventions and conferences). Based on hotel industry standards
          and requirements, a new moderate size project would need to achieve
          a minimum annual occupancy rate of 65% in order to be profitable.
          Based on historical occupancy rates of Belfast area hotels and
          previous tourism market studies conducted for the Maine State
          Development Office, it is doubtful that this level of performance
          could be achieved. Market Decisions recommends that this use not
          be pursued at this time.









           Office Potential

                Market Decisions (with assistance from the Waldo County
           Opportunity Zone) estimates that there are approximately 125,000 -
           130,000 square feet of office space in the Belfast area.         This
           figure does -not include office space that is associated with
           manufacturing facilities such as Penobscot Frozen Food or Stinson
           Canning.   The demand for office space depends on new business
           formation in the area, on businesses relocating to the area, and on
           local businesses expanding.

                Based on national standards, on average approximately 200
           square feet of office space is allocated per white collar employee.
           According to the Maine Department of Labor, there was an annual
           average of 640 white collar employees working in the Belfast  LMA in
           1990. Based on an average of 200 square feet per employee, there
           is a current estimated demand of 128,000 square feet of       office
           space in the market area.

                Current market conditions indicate that much of the      office
           space being absorbed in Belfast (primarily at the Belfast     Center
           building) is by firms seeking more space with better amenities,
           such as parking, for the same or lower lease rates. Professionals,
           including doctors, lawyers, accountants, etc., also have the option
           of purchasing single family homes and converting them to office
           space.

                The Maine Department of Labor data does not suggest that the
           Belfast area will likely experience growth in white collar jobs
           that will justify the need for the development of moderate to large
           amounts of office space in Belfast during the next five years.

                Market Decisions recommends that development of office space
           not be a primary focus of the Belfast waterfront plan.

                Any future potential for the creation of an office space
           project on the Belfast waterfront will need to offer quality space
           in flexible sizes, with amenities such as ample parking, in order
           to be successful. It appears that the current demand for office
           space in the Belfast IMA is being adequately served.          Market
           Decisions believes that, unless a moderate to large employer moves
           to the area or Belfast can position itself as a strategic location'
           for a satellite office for firms serving the mid-coast, there will
           not be adequate growth in the employment sectors that demand office
           space to make an office project feasible.













                                      INTRODUCTION


               The Belfast Waterfront Committee requested Market Decisions,
          Inc., to analyze the demand potential for four types of
         ,development. These uses include:

               1)   Marina
               2)   Marine related retail
               3)   Hotel
               4)   Office

               Market Decisions conducted a market overview for each use.
          The overviews included:

                    Identification of the market area, that is, the area from
                    which a majority of the users will originate.
                    Demographic and economic overview of the market area.
                    Demand analysis to determine the potential market
                    supports for the selected use.

               The overview did not include any detailed evaluations of the
          competitive environment as it relates to each use.        Therefore,
          though the demand analysis might indicate the potential for a type
          of development, no determination has been made as to the portion of
          the identified demand that may be available to support waterfront
          redevelopment.

               Based on the findings of previous market studies conducted by
          Market Decisions, the primary market area for the City of Belfast
          equates to those communities that compose the state-defined Belfast
          Labor Market Area (LMA).    The I14A includes the communities that
          comprise Waldo County, less the Town of Winterport. This market
          area applies to both the analysis for hotel potential and office
          space potential. The marina market area is considerably larger and
          includes not only the Belfast LMA but also part of the Bangor area,
          Augusta area, and the Bucksport area. The marine related retail
          market area includes those boat owners that currently use or may
          use Belfast Harbor when and if a marina is constructed.

               A discussion of the Belfast LMA serves as a reference point
          for the market research portion of the Belfast Waterfront Study.
          The next section provides an overview of Belfast and the area it
          serves.








                                                                                                                                    2


                                     DESCRIPTION OF THE BELFAST LABOR 14ARKET AREA


                  Overview

                           The City of Belfast is located in eastern Waldo County,
                  approximately 27 miles north of Rockland and 34 miles south of
                  Bangor. It is linked to Rockland and Camden to the south via Route
                  1, Bangor to the north via Route 1A, and Augusta to the west via
                  Route 3. Route 1 is the major north/south coastal route and Route
                  3 is a major east/west route.

                           Belfast has historically been primarily a blue collar
                  community that serves as the economic hub for most of Waldo County.
                  This community has an urban character because of its location on
                  Belfast Harbor and Route 1. Belfast has established itself as the
                  retail center of eastern Waldo County and is the county seat. The
                  city has a variety of chain and independent retail stores that
                  cater to area residents and summer tourists.

                           Belfast is part of a state-defined labor market area (LMA)
                  that encompasses Waldo County, less the town, of Winterport.
                  Historically, this LMA has had unemployment rates well above the
                  state average. As of June 1991, the date of the latest published
                  data, the Belfast LMA was suffering 11.0% unemployment compared to
                  a statewide rate of 7.6%. The number of jobs in the LMA has grown
                  moderately from 5,710 in 1984 to 6,730 in 1990. (See Table 1.)

                           The Belfast LMA's economy is rooted in manufacturing, the
                  service sector, and the tourism industry. Since 1988, the number
                  of jobs in the INA has grown at less than half the average rate as
                  the previous four years. During the later two years, the LKA lost
                  jobs in both the durable and nondurable manufacturing sectors as
                  the area shifted toward more service oriented jobs. This shift is
                  indicative of Belfast's growing importance as a service and retail
                  center for most of Waldo County. The substantial growth in the
                  construction sector, fueled in part by tourism during the mid-
                  19801s, has been eroded during the last two years.

                                                                     TABLE I
                                                                                                 Av. Am.           Av. Ann.
                                                                            Preliminary          % Change          % Change
                           Sector                             1984     1988    1990              19 84-98          1968-90

                           Total                              5.710    6,550   6.730              3.5%               1.4%
                               facturing                      1,860    1,510   1,350             -5.1%              -5.5%
                             Durables                           510      570      480             2.8%              -8.2%
                             Nondurebtes                      1,350      940      870            -8.6%              -3.8%
                           Nonmenufacturing                   3,840    5,040   5,370              7.0%               3.2%
                             Construction                       230      550      420            24.3%             -12.6%
                             Trans./Utilities                   310      290      310            -1.6%               3.4%
                             Whotesate Trade                    110      130      ISO             4.3%              17.7%
                             Retail Trade                     1.060    1,520   1.600              9.4%               2.6%
                             Finance, ins.                      100        90      90            -2.6%               0.0%
                             Services & Mining                1,020    1,260   1."0               5.4%               6.9%
                             Goverrvwnt                       1,010    1,190   1,320              4.2%               5.3%

                           Source: Maine Dept. of Labor, 1984, 1988, and    1990 (preliminary)











                                                                              3

                The State Planning office has characterized Belfast itself as
          a Small Economically Diversified City (Economic Distress and the
          Changing Nature of Rural Maine, 1979). Such communities are small
          job centers with populations of between 2,400 and 7,800. They are
          relatively compact, with 55% - 90% of the communities' housing
          located in their centers, and between 15% and 30% of the housing is
          multifamily.

                Penobscot Frozen Foods, a producer of baked potato products
          located in Belfast, has just over 165 employees. Stinson Canning,
          which produces canned sardines and fish products, employs
          approximately 200 people in its Belfast Plant. As evidence of the
          shift away from the manufacturing sector, Etonic closed its 'Men's
          shoe factory in Belfast within the past two years, idling 75
          workers.'

                Additionally, a substantial number of people are employed by
          the major retailers in Belfast. The retailers are supported both
          by Waldo County's population of 32,000, many who treat Belfast as
          a regional center, and by an active trade among summer tourists
          visiting downeast coastal Mainel including points along Penobscot
          Bay and Acadia National Park. Taxable consumer retail sales in the
          Belfast area (including Belfast Economic Summary area) increased by
          an average of 9.2% per year from 1984 - 1990, according to State
          sales tax data: from $44.8 million to $76.7 million. The City of
          Belfast accounts for 85% of those sales.

                Belfast serves as a major employment center. Commuting data
          from the 1980 U.S. Census indicates that approximately 82% of the
          labor force in Belfast held slightly more than 52% of all jobs in
          Belfast. Additionally, 63% of all.the town of Waldo's workers, 43%
          of Morrill's workers, and 37% of both Searsmont's and Belmont's
          workers commuted to Belfast.

          Population and Household Growth

                Between 1970 and 1980, the population of the Belfast LMA
          increased at an average annual rate of 1.9% to 25,739. The City of
          Belfast itself grew at a slow average annual rate of 0.5% to 6,243,
          gaining about 290 people during the period. The population in the
          rest of the LMA increased at an average annual rate of 2.4% to
          19,496, gaining approximately 4,100 people. (See Table 2.)

                Based on the 1990 U.S. Census data, the LMA has grown since
          1980 to a current population of 29,843, for a slower average annual
          growth rate of 1.5%. The City of Belfast's population is estimated
          to have remained relatively stable, increasing at a -slow average
          annual rate of 0.2% (similar to the previous decade), or about 110
          people, to 6,355. The population of the rest of the LMA (excluding
          Belfast) has experienced an average annual increase of 1.9% -- or
          about 4,000 people -- to 23,488. According to the 1990 U.S. Census
          lata, 410 people reside in group quarters in the LMA (149 of those
          in Belfast).











                                                                                          4


                                            TABLE 2
                                   Belfast Waterfront Study
                               Population and Household Change
                                          Belfast LMA


                            U.S.       U.S..       U.S.    Av. Annual            AV. Ann.
                           Census     Census     Census       Change     1995     Change
     Population             1970       1980        1990     1980-192.0   Proj. 1990-1995

     Belfast IMA            21,365     25,739      29,843      1.5%      31,922       1.4%

     City of Belfast         5,957      6,243       6,355      0.2%        6,465      0.3%

     LMA less City          15,408     19,496      23,488      1.9%      25,457       1.6%

     Households


     Belfast IMA             6,548      8,929      11,298      2.4%      12,358       1.8%
           Group Quarters                   317        410                    410

     City of Belfast         1,981      2,288       2,579      1.2%        2,699      0.9%
           Group Quarters                   112        149                    149

     LMA less City           4,567      6,641       8,719      2.8%        9,659      2.1%
           Group Quarters                   205        261                    261

     Household Size


     Belfast IMA               3.21       2.85        2.61                   2.55

     City of Belfast           2.95       2.68        2.41                  2.34

     LMA less City            N/A         2.90        2.66                   2.60









     Sources: U.S. Census
                National Planning Data,Corp.
                Market Decisions, Inc.









                                                                                   5

                 The number of households in the IMA increased during the
           1980's. Based on the 1990 U.S. Census data, between 1980 and 1990
           households in the IMA increased at an average annual rate of 2.4%,
           or by 240 households per year. This 26.5% increase has brought the
           total number of households to an estimated 11,298.

                 Looking at the City of Belfast alone from 1980 - 1990,
           according to the available 1990 U.S. Census data, the number of
           households has increased at an average annual rate of 1.2% from
           2,288 to 2,579 (or 28 - 32 households per year).

                 In the rest of the Belfast IMA (less the City of Belfast) the
           number of households has increased at an average annual rate of
           2.8% (or 200 - 210 households per year) from 6,641 to 8,719.

                 Over the next five years the number of households in the LMA
           is projected to grow at a somewhat slower average annual rate of
           approximately 1.8%, to 12,358.       The number of households in the
           City of Belfast is projected to increase at an average annual rate
           of 0.9% (or 20 - 25 households per year), reaching about 2,700 by
           1995.    In the rest of the LMA, the number 'of households is
           projected to increase at an average annual rate of 2.1% (or 185 -
           190 households per year), to about 9,660 households in 1995.

                 According to distribution estimates of National Planning Data
           Corporation, the fastest growing head of householder cohort in the
           Belfast LMA and the City of Belfast during the past ten years has
           been the 35 - 64 year old age group. In the rest of the LMA, the
           households headed by a person 35 - 64 and 65 years old or older
           grew at approximately the same rate. The households headed by a
           person 35 - 64 years old is by far the largest group in the LMA as
           well as the two submarket areas. (See Table 3.)

           Characteristics of the Population

                 The Belfast LMA's work force is a mixture of blue collar and
           white collar workers.      According to the 1980 U.S. Census data,
           approximately 41% of the labor force worked in blue collar
           occupations such as producers, craftsmen,. operators, or laborers
           (versus a statewide average of nearly 37%).         Another nearly 18%
           held positions in sales and administrative support (versus a
           statewide average of about 23%), while slightly more than 13%
           worked in service occupations. Approximately 20% were employed in
           executive/professional positions and about 2% were employed in
           technical positions. Slightly more than it of the LMA's work force
           were employed in farming (versus a statewide average of slightly
           less than 4%).

                 By industry, in 1980 slightly less than 29% of the Belfast
           LMA's work force were employed in manufacturing (versus a statewide
           average of 27%) and about 27% were employed in the service sector.
           Slightly more than 14% of the labor force worked in the retail
           industry.        The   public    administration     sector    and     the
           transportation/public utility sector each accounted for about 6% of
           the work force. Approximately 7% of the labor force worked in
           construction.










                                                                               6


                                          TABLE 3
                                 Belfast Waterfront Study
                                Estimated Household Change
                                       By Age Group
                                             1990



                                           1980            1990       Chancfe
           Households    Belfast LMA

           <35 years old                   2,719           2,821        3.8%
           35 - 64 years old               4,228           5,840      38.1%
           65+ years old                   1,982           2,636      33.0%

           Households - City  of Belfast

           <35 years old                      631             597     (5.4%)
           35 - 64 years old               1,039           1,287      23.9%
           65+ years old                      618             695     12.5%

           Households - Belfast LMA
           less Belfast


           <35 years old                   2,088           2,224        6.5%
           35 - 64 years   old             3,189           4,553      42.8%
           65+ years old                   1,364           1,941      42.3%


           Note: Household numbers may not add   to match  those in Table 2 due
                 to rounding.



           Source: U.S. Census
                   National Planning Data Corporation
                   Market Decisions, Inc.










                                                                              7

                In 1980, slightly more than 33% of the Belfast LMA's residents
           over the age of 25 had not completed high school. About 40% had a
           high school diploma only, approximately 13% had some college, and
           more than 13% had a college degree.

                Income levels in the Belfast LMA are in the lower range. In
           1979, the per capita income of residents was $4,651, approximately
           19% less than the state per capita income of $5,768. The 1990 per
           capita income for the LMA is estimated by the National Planning
           Data Corporation to be $10,286.

                Median household income in the Belfast LMA in 1979 was
           $11,407, approximately 17% less than the statewide median of
           $13,816. The National Planning Data corporation estimates the 1990
           median household income in the LMA to be $22,400.

                In 1990, nearly 33% of all households in.the LMA are estimated
           to have incomes below $15,000 and about 41% are in a moderate range
           with incomes of between $15,000 and $35,000. About 27% percent are
           estimated to have incomes exceeding $35,000. (See Table 4.)












                                                               TABLE 4
                                                      Belfast Waterfront Study
                                             Estimated Household Income Distribution
                                                             Belfast LMA
                                                                  1990




                                   All        All         HH's       HH's       HH's       HH's       HH's        HH's
             income Range          HH's       HH's       <35         <35        35-64      35-64        65+        65+

             Total households      11,298     100.0%     2,821       100.0%     5,840       100.0%     2,636       100.0%
                 under  .$15,000   3,696      32.7%        863       30.6%      1,378       23.6%       1,452      55.1%
             $15,000 - $24#999     2,622      23.2%        787       27.9%      1,302       22.3%         532      20.2%
             $25,000 -   $34,999   1,988      17.6%        567       20.1%      1,092       18.7%         327      12.4%
             $35,000 -   $49p999   1,889      16.7%        446       15.8%      1,232       21.1%         214        8.1%
             $50,000 -   $74,999      785       7.0%       127         4.5%        590      10.1%          74        2.8%
             $75,000+                 317       2.8%         31        1.1%        245        4.2%         40        1.5%


             Note: Some columns   may not add  exactly due to rounding.                         -


             Source: U.S. Census
                     National Planning Data Corp.
                     Market Decisions, Inc., August 1991











                                                                               9



                                 THE MARINA MARKET AREA


           Boundaries

                The marina Is prospective primary market area is the contiguous
           area from which 70% - 80% of slip users can be expected to be
           drawn. The remaining 20% - 30% would come from fringe areas or
           from beyond the market area.

                The Belfast waterfront and its location within the region
           strongly suggests that the market area will take on a north-south
           orientation along the Route 1/1A corridor, which roughly follows
           the coastline and along the Penobscot River-to Bangor. The inland
           east-west axis (from Belfast to Augusta) is also served by a
           highway network.      Though Route 3 does not offers boaters
           intervening opportunities (with the exception of China Lake), it
           does provide generally easy access to the water at points in the
           Belfast area.

                Based on previous marina studies conducted by Market Decisions
           in the mid-coast area, as well as the locational characteristics of
           the Belfast waterfront, the primary market area's basic outline
           will be Waldo County, Bangor metropolitan area, the immediate
           Augusta area, and the Bucksport area. These boundaries have been
           modified to reflect roadway patterns and distance from the site:
           25 - 30 miles to the north, 10 miles to the southwest, 45 miles to
           the west, plus nearby towns in Hancock County that do not front on
           Penobscot Bay. This results in a 41-community primary market area:

                Waldo Cou=
                Belfast                   Morrill
                Belmont                   Northport
                Brooks                    Palermo
                Burnham                   Prospect
                Frankfort                 Searsmont
                Freedom                   Searsport
                Islesboro                 Stockton Springs
                Jackson                   Swanville
                Knox                      Thorndike
                Liberty                   Troy
                Lincolnville              Unity
                Monroe                    Waldo
                Montville                 Winterport.

                Penobscot  County
                Bangor                    Hermon
                Brewer                    Holden
                Glenburn                  Newburg
                Hampden                   Orrington









                                                                             10


                Kennebec County
                Augusta                   Vassalboro
                China                     Windsor


                Hancock County
                Bucksport                 Verona
                Orland

           Democrraphics of Marina Market Area

                Population: The market area I s population is growing slowly
           and, according to the 1990 U.S. Census, the area's current
           population is 133,482, up from 123,237 in 1980. The average annual
           change during the decade is estimated at 0.8%. The population is
           projected to grow by 3% - 4% over the next five years to
           approximately 138,000. See Table 5. The Penobscot County portion
           of the market area represents one-half of the population, the Waldo
           County portion approximately a quarter, the Augusta portion
           slightly less than one-quarter, and the Hancock County portion
           about 5%.


                Households: The rate of increase in number of households has
           been nearly twice the rate of population growth.       This is the
           result of the full entry of the "baby boom" generation into its
           household creation years, combined with fewer persons in each
           household. According to the 1990 U.S. Census, there are currently
           51,700 households in the market area, up from 44,046 in 1980, for
           an average annual rate of increase of 1.6%.         The number of
           households is projected to increase by 6% - 7% over the next five
           years to nearly 55,000. See Table S.

                occupations: The market area's diverse occupational profile
           reflects the regional service and white collar role of Bangor,
           state government in the Augusta area, the tourist economy of the
           coast, and a few sizable manufacturers (Champion International in
           Bucksport, Eastern Fine  Paper in Brewer, Ansewn Shoe in Bangor,
           Bangor Publishing Co. in Bangor, GE and GTE in Bangor, Penobscot
           Frozen Foods in Belfast, Stinson Canning Co. in Belfast). As of
           1980, about 23% of employed persons were in executive/
           administrative/professional positions and 30% were in other white
           collar positions. About 15% were service workers and 30% were blue
           collar workers. Slightly more than 2% were in farming and fishing
           occupations. See Table 6.

                Householder Age: As the baby boom generation ages, the market
           area is "middle-aging." In 1980, about 1 in 6 householders was 35
           -
             44 years old. Today, more than 1 in 5 are in this cohort. And
           in 1995, slightly more than I in 4 will be in this group. over the
           next five years, 45 - 54 year old householders will gain shares as
           well, as the first "baby boomers" begin to enter that cohort.
           Young adults will decline as a percentage of all householders. see
           Table 6. The demographic trend is significant, because 35-to-54
           are the prime boat buying years.







                                     --now







                                                           TABLE 5
                                              Belfast Marina Demand Potential
                                              population and Household Change
                                           1970, 1980, 1990, and 1995 projections



                                                                               Av. Ann.              Av. Ann.
                                                                                 % Ch.      1995       % Ch.
                                                 1970       1980       1990    1980-90      Proj.     1990-95
                Population
                Belfast Marina Market Area       112,440   123,237    133,482      0.80-t  138,072       0.68%

                Households
                Belfast Marina Market Area        34,155    44,046     51,700      1.62%    54,958       1.15%
                persons per Household
                Belfast Marina Market Area          3.13      2.71       2.50                  2.44



                Source: U.S. Census 1980,    1990
                         National Planning  Data Corp.
                         Market Decisions,   Inc., 1995 projections



                Market Decisions,, Inc., August 1991











                                                                                               12


                                                  TABLE 6
                                           Marina Market Study
                                Selected Demographic Characteristics
                                      Belfast Marina Market Area

                                                                        Est.               Proj.
             occupation                             1980                1990               1995
             Executive/Admin./Prof.                 22.8%               N/A                N/A
             Technical/Sales                        13.6%
             Administrative Support                 16.3%
                   Subtotal White Collar            52.7%
             Production/Crafts                      13.2%
             Operatives/Laborers                    -16.7%
                   Subtotal Blue Collar             29.9%
             services                               14.9%
             Farm/Fishing                            2.5%

             Householder Age
             Under 25                                9.0%                6.3%                5.8%
             25 - 34                                23.3%               21.5%              18.8%
             35 - 44                                16.5%               21.5%              22.5%
             45 - 54                                15.4%               15.5%              18.2%
             55 - 64                                15.3%               13.6%              12.7%
             65+                                    20.6%               21.7%              22.01%

             Household Income                                           Est.               Proj.
             (Unadj. for Inflation)                 -1979               1990               1995
             Less than    $15fOOO                   55.4%               28.0%              20.3%
             $15,000 -    $24,999                   27.4%               21.1%              17.0%
             $25,000 -    $34,999                   11.0%               16.43%             15.9%
             $35,000 -    $49,999                    4.5%               18.2%              18.1%
             $50,000 -    $74,999                    1.3%               11.9%              17.2%
             $75,000 -    $99,999                    0.3%                2.8%                7.9%
             $100,000 or more                        0.1%                1.6%                3.6%
             Median                               $13,405            $25,506             $32,937
             Median - Maine                       $13,826            $26,735             $34,684
             Median   - Portland MSA              $15,568            $33,128             $44,205






             Sources: U.S. Census
                          National Planning Data Corp.
                          Market Decisions, Inc.










                                                                                  13

                 Income: The market area can be characterized as moderate-to-
            middle income.     Its median household income is estimated at
            $25,506, or about 95% the statewide level (and, for further
            comparison, about 77% the level for the Greater Portland area; see
            Table 6). About 49% of market area households are estimated to
            have less than $25,000 income, while about 16% are estimated to
            have $50,000 or more income. By 1995, it is projected that about
            29% of households will have $50,000 or more income. Most of this
            will be attributable to inflation (assuming an average rate of 4.5%
              5.0%)   However, there will also be real income growth as the
            households with the highest incomes -- those headed by a person 35
              54 years old     become more prevalent in the market.










                                                                               14



                                 MARINA DEMAND POTENTIAL

           Boating Trends in Maine

                Different indicators suggest that the recreational boating
           trend in Maine is relatively stable-to-increasing:

                      The long-term (20-year) trend nationally shows the
                      percentage of adults who participate in motorboating to
                      be stable (16% in 1966, 15% in 1985). [Source: Gallgr)
                      Leisure Activities Index, 1986)

                      The long-term trend nationally shows the percentage of
                      adults who participate in sailing to be on the rise (2%
                      in 1966, 5% in 1985).

                      Even a stable rate of participation indicates an absolute
                      growth in boating, since there are more adults today than
                      20 years ago (when the baby boom was still in youth).

                      Revenues from sales of boats in Maine have grown rapidly,
                      from $35.8 million in 1984 to $97.1 million in 1990, or
                      an average annual rate of growth of 18.1%. (Source:
                      Maine Bureau of Taxation)         This burst in sales
                      undoubtedly is related to the baby boom's entry into the
                      "boat buying" cohort of 35-to-54 years old, and to the
                      state's strong economy during 1984 - 1988.

                      However, the number of boats registered in Maine and used
                      for pleasure has actually declined during the last six
                      years, from 106,281 in 1984 to 102,991 in 1990, or an
                      average annual rate of decline of 0.5%. [Source: Maine
                      Dept. of Inland Fisheries and Wildlife]

           Boater Profile

                Past surveys conducted by Market Decisions of owners of boats
           that are 20 feet or longer provide an overall profile of serious
           boaters in the midcoast region of Maine. It is important to note
           that these previous studies did not include the Augusta area. It
           @ust be cautioned that the profile is not precise, but nevertheless
           is a useful approximation.         Following are some applicable
           highlights:

                ≥:   Between 45% and 50% of boat registrants are 35-to-54
           years old, and 40% - 50% are 55 or older. Less than 10% are under
           35. The Bangor area and Waldo County tend to have more middle-aged
           (35-to-54) registrants, while Hancock County has a higher
           proportion of retiree aged (65+) registrants.











                                                                                  15

                Occupation: 40% - 45% of registrants are in professional or
           other white collar occupations.         20% - 25% are retired, and
           slightly less than 20% are in fishing or other marine-related
           occupations.

                Incomes: More than 50% have household incomes of $50,000 or
           more. This ranges significantly among registrants from the areas
           that comprise the market area.

                Boat Length: Slightly more than 50% own boats that are 251 to
           391 long.    Approximately 40% own boats of 201. - 251 length, and
           less than lot own boats of 401 or more.

                Type:    Three in five own powerboats, while two in five own
           sailboats.

                Excursions: Day trips are the typical type of excursion for
           three-quarters of the boaters.        Less than 10% typically take
           excursions of a week or more. About 40% never stop at another port
           before returning to their home port, while 35% - 40% occasionally
           do, and 20% - 25% almost always do.

           Demand for Slips

                Within the marina market area (Waldo County, the Bangor area,
           the Augusta area, and the Bucksport area), there are a total of
           1,274 state-registered boats of 20 feet or longer.       (See Table 7.)
           This represents about 9.54 such    boats for every 1,000 people in the
           population. This ratio varies      by geography:

                               No. Boats      1990           No. 201+
                Area             201+         Pop.        Boats/1,000 Pop.

                Waldo Co.           524       33,018          15.87
                Bangor Area         445       62,707           7.10
                Augusta Area        220       30,612           7.19
                Bucksport Area       85        7,145          11.90

                      TOTAL       1,274      133,482           9.54

                Based on previous marina market studies conducted in the area,
           the large majority -- 70% to 80% -- of large boat owners rent or
           own a mooring for their boats. Only 5% - 10% rent a slip., In very
           large part, this small percentage is due to a paucity of slips in
           the area. Based on an extrapolation of past survey results, given
           the choice of a mooring or a marina slip, approximately 55% - 60%
           indicated that at least in theory they would choose a marina slip.
           Applied to the population of 1,274 owners of 20-foot-plus boats,
           this would suggest interest in the concept of a marina among 700
           750 of them.











                                                                                16


                                          TABLE 7
                             Belfast Marina Demand Potential
                           20 Foot or Longer Registered Boats
                               Belfast Marina Market Area


                                                   1990            of 201+
                                4 201 Boats    Population    Boats/1,000 Pop.

         Waldo County:                    524        33,018               15.87
                                (94 Belfast)
        ,Kennebec County:
              Augusta                     132        21,325
              China                        43         3,713
              Vassalboro                   32         3,679
              Windsor                      13        -1,895
                                          220        30,612               7.19
         Hancock County:
              Bucksport                    39         4,825
              Orland                       33         1,805
              Verona                       13            515
                                           85         7,145               11.90
         Penobscot County:
              Bangor                      188        33,181,
              Brewer                       59         9,021
              Glenburn                     30         3,198
              Hermon                       27         3,755
              Hampden                      56         5,974
              Holden                       34         2,952
              Newburg                      12         1,317
              Orrington                    39         3,309
                                          445        62,707               7.10

                   TOTAL                1,274       133,482               9.54




         Source: Inland Fisheries and Wildlife
                  State of Maine
                  Market Decisions, Inc., August 1991










                                                                                17

                                 Preference for marina slip

                                Weighted
                                 Total     Waldo     Bangor   Augusta Bucksport
            201 Boat Owners      1,274      524       445        220       85
             Choosing Slip          57%       52%      721%       40%      50%
                 Total             722,     272       320         88       42

                 The number of  boat owners who have  a preference for a marina
            slip drops by more than a half when a minimal cost for a slip
            ($45/foot/season) is incorporated. An estimated 26% of those who
            are estimated to have a preference for a marina slip would be
            willing to pay at least that much for a slip. Extrapolated to the
            population of 20-foot-plus boat owners yields 300 - 350 boaters
            still interested in the concept:


                   Willingness to Day $45/foot or more for marina slip

                                Weighted
                                 Total     Waldo     Bangor   Augusta Bucksport
            201 Boat Owners      1,274      524       445        220       85
             Choosing Slip          26%       22%      31%       - 25%     23%
                 Total             328      115       138         55       20


                 Without a survey of the   owners of boats 20 feet or greater in
            the market area, it is impossible    to predict what the level of
            interest is with respect to slips in Belfast. Not all those who
            are interested, in concept, in a marina slip  would be interested in
            a marina in Belfast Harbor.       "Interest" frequently does not
            translate into behavior.    A rule of thumb is that 80% of those
            expressing a high level of interest and 20%   of those expressing a
            lesser level of interest may actually act     upon that interest if
            given the opportunity.    Assuming that boat owners in the market
            area would have a similar level interest in a slip in Stockton
            Springs as they would in Belfast, approximately 30% of the boat
            owners could be expected to be both interested and to act on that
            interest.


                          Estimated Intergst in Belfast Maring
            (Adiusted to reflect level of interest and a willingness to Pay
                           S45/foot or more for a marina-slip)

                                Weighted
                                 Total     Waldo     Bangor   Augusta Bucksport
            201 Boat Owners        328      115       138         55       20
            with interest           31%       40%      30%        18%      20%
                 Total             101        46       41         10         4








                Care must be used in accepting the results of this analysis as
           an indication of demand potential. Since no survey was conducted
           specifically to measure interest in Belfast Harbor, it is difficult
           to determine, with any great accuracy, demand potential. However,
           combined with a review of the market area's demographics and
           conversations with knowledgeable people in the local boating
           industry, we believe a reasonable estimate of total potential
           demand for the marina is 100 - 110 slips.

                As seen earlier, population growth in the market area is
           projected to be modest over the next five years -- only about 0.8%
           per year. However, growth in households headed by persons 35 - 54
           years old -- the prime boat buying years -- will increase by five
           tines that rate (about 3. 8 %/year) .      Demand for slips can be
           expected to follow this trend line.      if so, in five years total
           potential demand is projected at 120 - 130 slips.

           Current B oat Accommodations in Belfast

                There are currently 245 moorings and 8 mooring floats (which
           hold two boats) in Belfast Harbor. According to the Harbormaster,
           approximately 95% of these boats are used for pleasure. The number
           of moorings has increased 133%, from 105 in 1985. The mooring fee
           for Belfast residents is $30 per year, and the fee is $90 for
           nonresidents.

                The City provides   a public launch, gas and diesel pumps, and
           sewage pump-out.

                John Holmes of Consumer Fuel installed 16 slips for seasonal
           rentals in 1989. According to Mr. Holmes, currently 15 of the 16
           slips are rented for the season and one slip is being used for
           transient  and short-term rental. The lease rate schedule for the
           slips is:                                                       I

                4 of  Boats      Seasonal Lease Rate        Length of Boat
                      6                $1,200               up to 2741
                      8                $1,400               281 to 34h'
                      1                $1,700               351 to 431

                The marina offers services    such as water and electricity.

                other than moorings, the transient boat owner has very limited
           options currently in Belfast Harbor.            The City Dock has
           approximately 460 feet of floating dock. Space is rented for $0.75
           per foot per night.     (Example:   a 35 foot boat would be charged
           $26.25 for an overnight stay.) The facility is designed primarily
           to accommodate small to moderate size boats; however, it can
           provide accommodations for one boat up to 80 feet. The number of
           boats that the dock can accommodate at one time depends on the size
           of the boats.    Additionally, there is one slip at John Holmes,
           marina, and the Belfast Boat Yard occasionally will accommodate a
           transient. The City Dock has space for up to three smaller boats.











                                                                             19



                            MARINE RELATED RETAIL POTENTIAL


                According to the previous surveys of boater owners in the mid-
          coast area, only three features were clearly deemed "essential" for
          a marina: fuel, deep water, and security. Features that were rated
          somewhere between "essential" and "desirable" include water supply
          to the slips and rest rooms. Services clearly rated as "desirable"
          include repair service, equipment to haul boats, electricity at the
          slip, ice, marine supplies, winter storage, and beverages/snacks.
          Less important to consumers were a launch ramp, sewage pumping,
          showers, laundromat, restaurant, nearby retail stores, and on-shore
          lodging.

                marina services vary by boater characteristics.         Market
          Decisions has found that year-round residents of the local area
          near a marina consider the basics of fuel, water supply, security,
          rest rooms, winter storage, and sewage pumping as "essential," as
          well as groceries, lodging, and stores (though it is unclear why or
          how they would use the latter services).       None of the listed
          features was rated by this group as generally unnecessary.

                The size of a marine-related retail operation will be
          determined by the size of the marina (number    of boats in slips),
          the number of boats on moorings in a harbor, and the amount of
          transient boat traffic. The amount of transient traffic will be
          important with respect to the range of supplies offered.

                Based on mooring information supplied to Market Decisions by
          the Harbormaster in Belfast, of the 238 mooring users identified on
          the list, there are 125 sailboats, 104 motor boats, 8 row boats,
          and one dingy. The following table provides a complete breakdown
          by type of boat.

                               Motor Boats
          Sail Inboard     Outboard    Inboard/Outboard     Row Boat Dingy
           125     37         43             24                8        1

                The Belfast area is currently serviced by a number of nearby-
          marine retail stores. The most noteworthy is Hamilton Marine in
          Searsport. This store  reportedly offers the fullest line of marine
          suppliers of any store north of Boston. Hamilton Marine offers a'
          complete line of marine hardware including chain, buoys, paint,
          rope, fiberglass, fastenings, electronics, books, charts, and
          safety equipment. Hamilton Marine also offers merchandise through
          a discount catalog. Two other marine retail stores, Rockland Boat
          in Rockland and Stetson & Pinkham in Waldoboro, also provide marine
          supplies to boaters in the mid-coast area.

                Because of the presence and proximity of Hamilton Marine, the
          market for a mArine-related retail shop on Belfast waterfront will










                                                                            20

          primarily be those boats either on moorings or in slips in the
          Harbor plus transient boat traffic.    Area boaters who choose to
          locate their boats in Belfast Harbor are likely to obtain a
          majority of their marine supplies from sources such as Hamilton
          Marine. The transient boat traffic is likely to require a greater
          range of marine supplies than those boaters who live in the area.
          The number of boaters who either utilize Belfast as a stopover
          point or who recognize Belfast as providing a variety of marine
          services will be a determining factor in the size and type of
          marine supplies. offered.   However, a small marine supply store
          located on the Belfast waterfront could likely be supported by a
          marina that contains 75 to 120 slips and upward to 250 boats on
          moorings.

               To determine the actual size and range of supplies offered
          would require a survey of marine retail stores that are affiliated
          with marinas. This survey would provide insights into the range of
          retail supplies offered and the number of boat owners served, both
          local and transient.

               Market Decisions recommends that a marina store be considered
          as part of the waterfront plan in conjunction with a marina. The
          range of supplies offered should be limited to those that meet the
          immediate needs of boat owners..      Examples of these supplies
          include: rope, cleats, paint, brushes, sponges, bumpers, and non-
          direct marine supplies such as coolers, flashlights, etc.        The
          range of supplies offered should be adjusted depending on the size
          and type of boats in the harbor and the amount of transient
          traffic. Wayne Hamilton of Hamilton Marine expressed interest in
          the potential for a satellite marine retail store on the
          waterfront.










                                                                                   21


                                       HOTEL POTENTIAL



                 The Belfast lodging market area compares closely with what the
            state has identified as the Belfast Labor Market Area (LMA). As
            discussed in the section that provides an overview of the Belfast
            LMA, the LMA includes the communities that comprise Waldo County,
            less the Town of Winterport.

            Resident employed

                 The resident civilian labor force in the Belfast market area
            has been increasing at an average annual rate of 1.9% since 1984:
            from 11,250 in 1984 to 12,610 in 1990. The unemployment rate among
            this labor force has historically been above the statewide average.
            For all of 1984 the unemployment rate in the Belfast LMA was 11%,
            versus a statewide average of 6.1%. In June 1991, as previously
            indicated, the unemployment rate for the Belfast LMA was 11.0%
            versus a statewide average of 7.6%.

                 As of 1980, according to the U.S. Census data, nearly 29% of
            the Belfast LMA's residents were employed in manufacturing
            positions. Services, led by health and social servicest accounted
            for one-quarter of all jobs held by IMA's residents. Retail trade
            accounted for another 14% of the work force.

            Analysis of Demand Potential

                 The demand for transient rooms is generated by two broad
            markets: business travel (including conventions and conferences)
            and leisure or pleasure travel. .

                 In   1988,   the     State  Development    office    sponsored     a
            comprehensive statewide study of travel in Maine of both
            nonresidents and residents.       The study divided the state into
            regions, one of which was the mid-coast region (of which Belfast is
            a part). The study measured the economic impact of travel and the
            tourism industry in the region. Measurements were made for 1986,
            with estimates for 1987. The study evaluated the seasonality of
            travel, the purpose of trips, and the type of accommodations used,
            including hotels/motels.

                 Another study, which was carried out by the U.S. Travel Data
            center, provides valuable statistics that assist in quantifying
            demand for rental lodging. According to the study, during the year
            August 1984 - August 1985, a total of 1,586,000 person-trips was
            received by the mid-coast region.









                                                                                   22

                 Table a displays some characteristics of these person-trips.
           Slightly less than half the trips were by nonresidents.           A half
           were taken in the summer months and slightly less than one-quarter
           were taken in the fall. Only 3% of the trips were for business,
           conventions, and meetings (compared to 7% for the purpose
           statewide).

                 The proportion of the mid-coast visitors who used rental
           lodging was 36%. This is slightly higher than the proportion of
           statewide visitors (30%) that did so.

           Business Demand

                 Major employers in the market area generate demand for
           overnight accommodations in varying degrees. The Belfast area has
           only a few large employers. The market area also includes a number
           of satellite facilities including Stinson Canning and Ducktrap,
           Inc.    Penobscot Frozen Foods in Belfast and Delta Chemical in
           Searsport are two of the largest employers in the market area. The
           region's largest employer is Champion Paper in Bucksport.

                 The extent to which these firms generate overnight room demand
           depends on market area served (the larger the market, the more
           demand), size and type of business, and out-of-state vs. in-state
           ownership (out-of-state ownership generates more-demand) . Based on
           interviews with a sample of the principal area firms and
           institutions, there appears to be very little business traf f ic into
           the Belfast area that generates demand for overnight rooms.

                 In our discussions with Stinson Canning, they indicated that
           any activity that would generate overnight room demand would be
           associated with the main plant in Prospect Harbor.          Most of the
           business trips to the Belfast plant are day trips and very rarely
           require an overnight stay. Harborside Graphics estimates 2-3 per
           month and then an annual sales meeting that requires 12 rooms for
           3 nights.     Ducktrap, Inc., estimates 1-2 per month; Penobscot
           Frozen Foods estimates 4 - 5 per month; and Mathews Brothers
           estimates 2-3 per month.

                 District Court-Belfast indicated that a majority of the
           lawyers that are involved with cases commute less than one hour.
           Rarely is there a lawyer from out-of-state or somewhere else in
           Maine who would generate an overnight stay.

                 Delta Chemical estimates 3-6 per month.

                 Champion Paper in Bucksport estimated         10 - 15 Champion
           personnel from other plants require overnight        accommodations per
           month.    Champion was not able to provide an estimate on other
           sales/business people who stay overnight when doing business at
           Champion.      The Jed Prouty Inn, near the          plant, serves as
           accommodation for most of the business that         requires overnight
           rooms.











                                                                             23


                                        TABLE 8
                            Belfast Hotel Demand Potential
                       Selected Characteristics of Person-Trips
                                  To Mid-Coast Region
                               August 1984 - August 1985

          1.   Resident vs. Nonresident

               Nonresident        766,000         48.3%
               Resident           820,000         51.74;

          2.   Pers on-Trips by-Season

               spring                             13.2%
               Summer                             49.4%
               Fall                               21.7%
               Winter                             15.6%

          3.   Person-Trips by Purpose of Trip

               Visit friends and relatives          21%
               For business/convention                3%
               For outdoor recreation               23%
               For entertainment                    36%
               For personal/family                    1%
               For other purposes                   15%

          4.   Persgn-Trips by Type of Accommodations

               Rental lodging (hotel, motel, bed & breakfast, etc.)         36%
               Campground                                                   24%
               Nonrental                                                    32%
               other                                                         1%
               Day trips                                                     8%





          Source:   Maine Tourism Study, 1984-85, Volume 1, Market Analysis
                    Market Decisions, Inc., August 1991











                                                                              24

                Most of the employers interviewed indicated little difficulty
           in locating rooms most of the time.      However, several mentioned
           that there is a lack of selection and quality associated with
           lodging facilities in the Belfast area.
                Membership organizations also are potentially important
           sources of demand.     Many membership organization meetings and
           seminars are one-day affairs., with minimal overnight demand.
           However, most hold annual meetings and training programs that last
           2-5 days.   Because of a lack of bed base combined with function
           rooms and restaurants, this potential market has not developed in
           Belfast. At present the Samoset in Rockport has positioned itself
           to capture a majority of this business in the mid-coast area.

           Pleasure/Personal Demand

                Pleasure and personal travel is generated by a wide variety of
           activities, from weddings and funerals to shopping and vacations.

                The Belfast market area is not a prime vacation destination
           area, with the exception of China Lake to the west.          it is,
           however, a convenient stopover point for travellers to points
           downeast, including Bar Harbor, Acadia National Park, the Ellsworth
           area, and the maritime Canadian region.       Local 'motel operators
           report this as an important source of business.

                The U.S. Travel Data Center estimates 1,500,000 - 1,600,000
           annual person-trips into the mid-coast region for pleasure,
           personal, and entertainment purposes. The mid-coast region extends
           from Brunswick to Stockton Springs.

                Thirty-six percent of these trips are for -entertainment,
           another nearly 23% are for outdoor recreation, and 21% are to visit
           friends and relatives.    Nationally, only about 36% - 39% of all
           pleasure/personal/weekend/vacation     trips   involve     commercial
           lodging.   The share in the mid-coast region is in line with the
           national averages, since there are a number of resort hotels in the
           area. (See Table 8.)

                Of those who are travelling in the mid-coast region for
           pleasure or for personal reasons and who do use commercial lodging,
           the Camden/Rockport market probably captures about 30% - 40% of the
           total mid-coast region's person-trips taken for such purposes. The
           Belfast area captures only about 3% - 5% of such trips.

           indicators of Demand

                The travel network -- in particular, the highway system -- is
           a valuable indicator of change in overnight traveller potential.

                The annual average daily traffic along Route 1 at the
           Belfast/Northport town line increased by more than 1,900 vehicles











                                                                              25

           per day between 1983 and 1987 (the date of the latest information) .
           This represents an average annual rate of growth of about 8.7%.
           (See-Table 9.)

                Annual average daily traffic counts on Route 1 on the
           Belfast/Searsport town line increased at an average annual rate of
           5.2%, from 7,680 vehicles in 1983 to 9,390 vehicles in 1987 (the
           date of the latest data for the location).            This increase
           represented an average of approximately 1,700 vehicles per day.

                On. Route 3 at a point referred to as Hayford Corner
           (approximately 2 miles west of the Route 3/Route 1 interchange in
           Belfast), the annual average daily traffic count increased by an
           average 1,360 vehicles from 1983 to 1990.       This represents an
           average annual rate of growth of approximately 4.5%.

                It is not known what portion of these vehicles carry overnight
           @ravellers.   Data by quarter, which would give a sense of the
           importance of summer traffic and its role in tourism, is not
           available.

                A final indicator of potential demand is the taxable retail
           sales records compiled by the Maine Bureau of Taxation. Lodging
           sales within the City of Belfast have declined slightly from $1.64
           million in 1989 to $1.61 million in 1990. on a quarterly basis,
           during the summer months (peak tourist months) , taxable lodging
           sales in Belfast increased from $943,000 in 1989 to $961,500 in
           1990. (See Table 10.)

           Seasonal Fluctuations

                There are clear seasonal swings in demand for commercial
           overnight lodging in the Belfast market.      First quarter lodging
           sales, according to state retail sales tax data, were about 4% of
           the annual total in 1990; second quarter sales were about 18% of
           the total; third (summer) quarter sales were about 60% of the
           total; and fourth quarter sales were about 19% of the total. (see
           Table 10.)

                According to the Maine Tourism Study 1985-1986, the peak-
           months for occupancy at hotels, motels, and resorts in the mid-
           coast area were June, July, August, and September. (See Table 11.)
           The occupancy rate during the four-month period ranged from 96.2%
           in June to 99.9% in August. May and October were shoulder months
           in which occupancy rates were 81.8% and 84.6%, respectively. Of
           the lodging facilities that are operating in the off-season, the
           occupancy rates are estimated to range from 10% - 30%.










                                                                              26


                                          TABLE 9
                                 Belfast Hotel Potential
                                      Traffic Counts
            North Route 1           1983        1986     1987      1988     1990
            Belfast/Searsport.      7,680      8,250    9,390      N/A       N/A

            South Route 1
            Belfast/Northport       4,895        N/A    6,830      N/A       N/A

            Belfast
            Hayford Corner
            Route 3                 3,786      4,060    5,050      N/A     5,140

            Belmont
            Route 3                 3,525        N/A      N/A      N/A     5,020






            Source: MDOT, Bureau of Planning
                     Market Decisions, Inc., August 1991











                                                                                     27


                                           TABLE 10
                                   Belfast Hotel Potential
                                    Taxable Lodging Sales


                         1989 Quarter           1990 Quarter       1991 Quarter
          Jan.         60.0)                  13.4)                12.2)
          Feb.         50.0)  155.6           28.9)     60.2       24.2) 83.1
          March        45.6)                  17.9)                46.7)
          April        49.6)                  26.2)                 25.6
          May          79.9)  279.3          106.8)  288.4
          June        149.8)                 155.4)
          July        316.6)                 345.8)
          Aug.        366.7)  943.3          419.0)  961.5
          Sept.       260.0)                 196.7)
          Oct.        115.1)                 113.6)
          Nov.         35.6)  260.4           62.5)  303.9
          Dec.        109.7)                 127.8)
          TOTAL    1,638.6                1,614.0                    N/A



          Source: Maine Department of Taxation
                   Market Decisions, Inc., August 1991











                                                       TABLE 11
                                       seasonality of Hotels, Motels, Resorts
                                                Percent of Rooms Open
                                          for Mid-Coast Region and by Month
                                                         MAINE
                                                          1986


        REGION            Jan.   Feb.    Mar.   Apr.    May    June   July    Aug.  Sept.   Oct.    Nov.   Dec.
         Mid-Coast         48.2   49.2   49.5    54.7   81.8    96.2   99.8   99.9    97.2   84.6   55.5   50.0
        State Average      57.5- 57.8    59.6    64.1 . 86.1- 96.5     98.8, 99.2    96.1. 85.4     65.3   61.5


      Source:    Maine Tourism Study, 1985-1986, Economic Analysis
                 Maine Development office
                 Market Decisions, Inc.t August 1991









                                                                                 29

                 In Belfast, there are a total of 278 lodging rooms in motels,
           bed and breakfasts (B&B Is), and cottages.       The rooms by type of
           lodging facility are:

                 Motels          156 rooms
                 B&B's            41 rooms
                 Cottages         81 rooms

           Of the 7 motels and cottage facilities, 3 are open year-round; and
           of the 10 B&B's, 6 are open year-round, and 4 are open from May to
           October.


                 Based on a conversation with Jim -Lovejoy, president of the
           Belfast Chamber of Commerce, historically the middle two weeks in
           July and the first three weeks in August account for the period of
           highest occupancy.     During this period, occupancy rates among
           Belfast's lodging facilities average between 70% and 80%.            The
           foliage season (mid-September to Columbus Day) accounts for the
           second highest occupancy period, with rates ranging from 60% to
           70%.   During the shoulder month of June, occupancy rates range
           between 35% and 40%. These rates reflect the occupancy rate among
           those units that are open during each period.

                 A second indictor is the data from the U.S. Travel Center's
           study, which indicated that about 16% of all trips to the mid-coast
           region are taken in the winter, 13% in the spring, 49% in the
           summer, and 22% in the fall. This breakdown shows less variation
           than the lodging sales tax data because it includes travellers who
           are not using commercial lodging (for example, relatives who are
           visiting for holidays) as well as those who are.

           Hotel Potential

                 Based on the indicators of demand, Market Decisions does not
           believe that the necessary market supports exist for a moderate
           size (40 - 50 room) hotel.

                 Based on national performance averages that are available,
           moderate sized hotels (40 - 50 rooms) require a minimum average
           annual occupancy rate of 65% in order to be a going concern. Using
           an example of a 50-room hotel, a 65% occupancy rate would equate to
           11,800 room nights (based on a total of 18,250 room nights -- 50
           rooms x 365 days = 18,250). Based on a minimum 65% occupancy (or
           11,800 room nights), each of the 50 rooms would have to be filled,
           on average, 236 nights per year. To state it another way, the 50
           room hotel would need to be full, on average, 8 months out of the
           year. Evaluating the potential for a 50-room hotel in th     .e current
           @odging market in the Belfast area provides similar insights. As
           indicated, there are currently 279 lodging rooms in Belfast. As
           discussed earlier, the facilities experience wide fluctuations in
           occupancy during the year. Assuming all the units were open year-
           round and an average occupancy rate of 40%, this assumption would
           equate to approximately 41,000 room nights (279 rooms + 40% = 112
           rooms x 365 days = 40,880 room nights). As indicated, a 50-room









                                                                            30

          hotel at a minimum 65% occupancy would generate approximately
          11,800 room nights.    The addition of this hotel project would
          increase the number of room nights in Belfast by about 45%.

               Based on the indicators of demand and the requirements of a
          new 50-room hotel, Market Decisions does not believe that the
          necessary market supports currently exist for a moderate sized
          hotel in Belfast. However, economic development in the Belfast IMA
          may make a hotel project possible. If, for instance, the Searsport
          Cargo facility were to be built, this could serve as a catalyst for
          a hotel on the waterfront in Belfast.










                                                                                31


                                  OFFICE SPACE POTENTIAL



                The demand for office space depends on new business formation
           in the area (either by new business start-ups or regional or
           national firms opening satellite offices), on businesses relocating
           to the area,and on local businesses expanding. @

                The market area f or of f ice space, or the area f rom which a
           majority of office space users will originate, is the Belfast LMA.
           This area is identical to the area that was identified as the
           market area for hotel rooms.        Therefore, the demographic and
           economic information discussed in the last section is applicable to
           the analysis for office space potential.

                A widely accepted measure of demand for office space is the
           number of white collar employees in an area times 200 square feet
           per employee. This figure is then subtracted from the amount of
           office space that currently exists in the market area.              The
           difference will indicate either the amount of pent-up demand or the
           potential amount of surplus space that exists.

                According to the Waldo County Opportunity Zone, there are
           approximately 120,000 - 130,000 square feet of office space in the
           City of Belfast. This office space is comprised of small, second-
           and third-floor units in the downtown area (primarily above retail
           space) and a number of significant office-oriented buildings. The
           most notable of these is the Cobb Medical Building adjacent to the
           Waldo County General Hospital.       This building is owned by the
           hospital and is oriented to medical professionals. It is two-story
           and contains approximately 16,400 square feet.

                The Belfast Center building (previously the Etonic plant)
           contains approximately 45,000 square feet.         This building was
           purchased by Cave Co. in February 1991 and is being leased to both
           office users and light manufacturing            firms.       Currently,
           approximately 15,000 square feet have been leased as office space
           and 15,000 square feet have been leased as light manufacturing
           space. of the remaining 15,000 square feet, the building's owner
           expects that a majority will be renovated and leased as office
           space. Currently, the office suites that are being rented range
           from 300 square feet to 3,000 square feet.        All the users have
           reportedly moved from other locations in Belfast. Currently, eight
           of the office space tenants are social service agencies. The base
           rent for office space is $0.55 per square foot (all utilities
           included) per month. This rent rate equates to $6.60 (gross) per
           square foot per year. This rent rate is adjusted if a tenant is a
           high electricity user or if additional amenities are added to the
           unit (such as air conditioning).      The absorption rate of office
           space for this project has been approximately 2,500 square feet per
           month.











                                                                               32

                The old Steego Auto Parts building at the corner of Franklin
          Street and Front Street contains a total of 5,800 rentable square
          feet of of f ice space.   The building's owner indicated that the
          average rent is $0.50 per square foot (utilities included) per
          month. The top floor, about 1,900 square feet, rents for $0.60 per
          square foot (or $1,150 per month).

                Based on national standards, on average approximately 200
          square feet of office'space is allocated per white collar employee.
          According to the Maine Department of Labor, there was an annual
          average of 640 white collar employees working in the Belfast LMA in
          @990. Based on an average of 200 square feet per employee, there
          is a current estimated demand of 128,000 square feet of office
          space in the IMA.

                A survey of existing office space in the City of Belfast,
          conducted by Waldo County Opportunity Zone and Market Decisions,
          indicates that there is an estimated 120,000 to 130,000 square feet
          of rentable office space in the City of Belfast. This space does
          not include office space associated with manufacturing facilities
          such as Penobscot Frozen Foods and Stinson canning or owner-
          occupied professional space such as doctors' and lawyers' offices.
          Additionally, based on Market Decisions' knowledge of Waldo County,
          there does not appear to be comparable leasable office space in the
          balance of Waldo County.

                Based on these assumptions and square foot estimates, the
          current demand for office space in the market area is being
          adequately met by existing supply. The Belfast Center project has
          placed a temporary strain on the officemarket in Belfast. As we
          understand, all of the office s]@ace tenants in the project (a
          current total of 15,000 square feet) relocated from other space in
          Belfast. According to the building's owner, he has offered most of
          the tenants "twice as much space at the same lease rate as they
          were paying prior to relocating."        This project is currently
          offering an additional 15,000 square feet of office space that has
          yet to be renovated or rented (but is included in the estimated
          total of office space).

                According to data provided by the Maine Department of Labor,
          the number of white collar jobs in the IMA increased by 50 jobs
          from 1984 to 1990. If the rate of growth were to continue at the
          same pace over the next five years, there would be the potential
          for an additional 8,000 to 10,000 square feet of office space in
          the Belfast LKA. It is important to note that many professionals
          such as doctors and lawyers purchase single-family homes in the
          Belfast area (for reasonable prices) and convert them, in part or
          whole, into office space to suit their needs. Therefore, some of
          the estimated increase in demand may not be capturable by projects
          offering rentable office space.











                                                                              33

               Any future potential for the creation of an of f ice space
          project on the Belfast waterfront will need to offer quality space
          (of which there is little in the Belfast area) in flexible sizes,
          with amenities such as ample parking, in order to be successful.
          @s indicated, it appears that the current demand for office space
          in the Belfast IMA is being adequately served. Market Decisions
          believes that unless a moderate to large employer moves to the area
          or Belfast can position itself as a strategic location f or a
          satellite office for firms serving the mid-coast, that there will
          not be adequate growth in the employment sectors that demand of f ice
          space to make an office project feasible.



          File: 91107.Rpt
                 Sebago Technics
























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