Last Cannery May Be First Lobster Processor

by Brenda Tredwell

Gouldsboro selectmen unanimously reversed their decision, and will reconsider continuing the application process for a community development grant, but said they need more information from the Live Lobster Co. before they do so. Documents to be forwarded by Live Lobster include an equipment list with plant layout specs, along with three years of financial, and tax records.

It was announced on August 4 that Live Lobster Co. of Chelsea, Mass. would be the buyer of the former Bumble Bee-Stinson sardine plant. While the official closing date on the site is in mid-October, Live Lobster’s President, Antonio Bussone, has already run into red tape with the town of Gouldsboro and the proposed Community Development Block Grant (CDBG) application process. The town was applying for the $400,000 federal grant — for the benefit of the proposed lobster processing facility — when things came to an abrupt halt.

On August 11, Gouldsboro selectmen voted not to apply for the federal grant, because there were unanswered questions regarding Bussone’s business plans. Residents expressed concerns that the $400k would be used to buy and sell lobster, and bait, putting local dealers at a disadvantage. The purpose of the grant is to fund a lobster processing facility, not, as selectman James Watson put it, “to jumpstart a lobster buying station.”

While Bussone reassured the town the grant money will buy equipment, town selectmen are proceeding cautiously in order to make decisions that will be in the best interests of the town, and protect Gouldsboro’s future interests. The deadline for the grant application was extended two weeks by the Department of Economic and Community Development (DECD) to allow Gouldsboro time to carefully review Live Lobster Co.’s business plans. The deadline for Gouldsboro selectmen to file their letter of intent and apply for the federal CDBG funds is September 24.

The discussion will continue on September 2 in Gouldsboro town hall at 6 pm. Dana Rice, who servesz as chairman of the board of selectmen, is a lobster dealer. Rice withdrew from the voting process in order to avoid a conflict of interest and turned the meeting over to selectman Bill Thayer.

After a 4-0 vote, Gouldsboro selectmen opted to keep the grant option open to Live Lobster, but there were more questions. Town Manager Yvonne Wilkinson’s focus was on liability. If the processing facility failed, or unforeseen issues interfered with the success of this project, would the town be responsible for repaying the grant? Wilkinson wanted to assess the risks before making decisions as this decision will affect the region.

The grant issue isn’t a deal breaker for Bussone, who said,” The $400 K isn’t going to determine what we do with this plant. More important, do the people of the town want us here?” Selectman Watson replied, “We’re looking at something that can affect this community for years. There’s nothing personal here.”

Bussone outlined his plan: During the U.S. season, there would be lobster processing, in addition to his established live market operations. During late fall, he might process Novi lobster. Maine’s shrimp starts coming in during February.

Live Lobster Co. was established in 2001, is based in Chelsea, Mass., near Logan Airport, and ships lobster internationally. Bussone, the firm’s president, said while the $400K grant isn’t a deal breaker, “These are federal funds. Do we want to send these funds to a chicken farm in Arizona?”

Bussone mentioned that if this town doesn’t want him to process in Prospect Harbor, he has options to set up operations in Bucksport.

Toni Lillienthal of Live Loster (formerly Atlantic Lobster) in Jonesport confirmed that Bussone had looked into possible processing sites in Augusta, Lewiston, Auburn, and Belfast before he put down a deposit at the former Stinson Factory. Bussone’s offer on the Stinsons Plant was $1.2 million dollars. The purchase and sales agreement with Bumble Bee was signed on August 2, 2010.

Because his stated intent is to process lobster, the CDB grant voted on by Gouldsboro residents would put $400,000 into the venture. Currently, Live Lobster Co. deals only in the live product market and owns 7 lobster buying stations in Maine. (Five of them are in Rockland, Spruce Head, Jonesport, Phippsburg, and Stonington.) Live Lobster owns 12 businesses in Maine, and has 80 employees. They plan to be processing after extensive renovations are made to the former Stinson Cannery.

By March of 2011, Live lobster hopes to process 60,000 lbs. of lobster daily, and plans to hire and train 100-150 workers. Bussone projected that the company will start interviewing job applicants in January. Former Stinson workers showed visible relief as selectmen voted to reconsider the grant application process. After being let go by Bumble Bee, without warning last April, those 128 workers will be given job opportunities first.

Townspeople had questions for Bussone. One resident commented that, between the 10 million pounds of lobster Bussone reportedly moved last year, and the projected volume of lobster buying – could the local fishery deliver that much? And what about the resource? He felt that this was a lot of power – one company holding, selling, and buying that much lobster.

Bussone will buy locally if he can. He said, “If I can purchase 5 million pounds, good. 6 million, better – 7 million pounds, even better.” His bottom number – the minimum poundage of lobster he needs for processing – is 5 million. Bussone added, “That’s 5 million pounds of lobster that didn’t go to Canada. It will strengthen local business… The (Stinson Factory) property is very valuable, a strategic location to buy bait, if the buyers sell us 50 percent of the catch. We are not here to take over local business. We are here to start a new business, processing.”

Last year, Live Lobster bought 10.2 million pounds of lobster in Maine, purchasing 300,000 pounds during that period from the Corea Co-op, in Gouldsboro.

Dwight Rodgers of the Corea Co-op said, “I don’t know if we can give him all the lobster he wants or not.“ Jeff Alley of Prospect Harbor if he takes that money he was going to use for equipment, and turns around and buys lobsters…it could really shut us down..” Alley’s family leases a wharf to Inland Lobster.