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Opponents Of Plum Creek Plan Cite Economic Woes

The Associated Press

BANGOR, Maine (AP) — Conservation and environmental groups opposed to Plum Creek Timber Co.'s massive development plan for the Moosehead Lake region raised a new argument as regulators began final deliberations Tuesday: The economic meltdown has eroded the economic underpinnings for the proposal.

Two of the primary opponents, Maine Audubon and the Natural Resources Council of Maine, contend there's no way to justify such a development in the current economic climate.

There are upward of 125 home lots in the Moosehead region on the market, and Maine's real estate market has tanked, said Brownie Carson of the Natural Resources Council of Maine.

"This makes no sense at all," he said.

The Maine Land Use Regulation Commission heard final arguments from organizations supporting and opposing the development on Tuesday. The planning agency for Maine's unorganized territories is expected to render a final decision this summer.

All told, Seattle-based Plum Creek is proposing 975 house lots, two resorts and protection of 430,000 acres in the Moosehead Lake region.

Plum Creek's first proposal came four years ago, and the plan was revised three times before LURC approved it last fall.

But that was before the economic meltdown, critics said.

"Since September, the global economy has fallen into its most perilous condition since the Great Depression," Carson said. "The housing market has collapsed and foreclosures are at an all-time high. Credit markets are described as 'frozen.'"

Because demand for home lots has dried up, one of the requirements necessary for LURC to approve the proposal has evaporated, Carson said. He said applicants must demonstrate a need for the project.

Even if the economy were in better shape, Maine Audubon and the Natural Resources Council of Maine would still oppose the development. They say it's just too big for the region; they also oppose the creation of a resort on Lily Bay.

"We are urging the commission in the strongest possible terms to pause, reconsider, and restructure Plum Creek's proposal into a much smaller development plan," Carson said.

Supporters said Plum Creek's proposal represented a balance of interests and that a planned development over 30 years was better than haphazard development.