BIDDEFORD — The city could soon enter into an agreement to buy and shut down the Maine Energy Recovery Company trash incinerator for a purchase price of about $10 million, said Mayor Alan Casavant on Tuesday.

Although there are a number of “moving parts,” he said, any of which could jeopardize the deal, the “possibilities are endless” for the potential for growth of the city, especially in the downtown and mill district, if the plant is closed.

For years, many have blamed the waste-to-energy incinerator for the stagnant growth of both locations, which are in close proximity to the downtown facility.

Throughout the past 25 years or so, since the plant opened, the city has had an uneasy relationship with Maine Energy. It provides about $800,000 in tax revenue to city coffers and a significant number of well-paying jobs to the area. But, over the years, many have said the problems ranging from odor, pollutants, traffic and more have stifled downtown development and led to a stigma surrounding Biddeford.

By getting rid of Maine Energy, Casavant believes this will be the shot in the arm the city needs for greater growth and prosperity for Biddeford, the largest city in Maine’s fastest-growing county. It would also be a major accomplishment for the mayor, who voted in favor of bringing the incinerator to Biddeford more than two decades ago as a city councilor at the time.

Prior to Tuesday’s revelations, city officials have kept under wraps the meetings they’ve held behind closed doors with representatives from Maine Energy’s parent company Casella Waste Systems, based in Rutland, Vt.

Additional closed-door meetings to work on an agreement will take place between the MERC negotiating committee, which includes Councilors Michael Ready and Rick Laverriere, the mayor, several members of city staff and Casella representatives.

Some of the details of what’s being discussed, said Casavant, include the purchase of Maine Energy by the city for $10 million or less. The company would finance the purchase, and there would be no interest on the sum. It would be paid over time in part through a possible surcharge the city would attach to the waste-tipping fee. A condition of the sale is that Biddeford would continue to contract for its waste disposal through Casella.

A curbside-recycling plan is also part of the deal, said Casavant. The company would provide the initial outlay for containers and equipment, which has been a stumbling block in the city’s efforts to implement single-stream curbside pickup of residential recycling.

This program would cost the city about $260,000 annually, said City Manager John Bubier.

Another part of the deal is that Casella would be responsible for dismantling Maine Energy. Only the stack would remain. Bubier said there are phone lines on the stack, which would bring in about $3 million in revenue over 20 years to the city that could be used to help finance the purchase.

In addition, said Casavant, funds from a tax increment financing district ”“ taxes which result from new property value that are directed to improvements in the downtown and mill district ”“ will also be used to help finance the purchase.

There is a concern to find funding so that Biddeford taxpayers don’t face a significant increase in their property tax rate as the Maine Energy tax dollars vanish and the city finances the purchase of the facility, said Casavant.

Councilor Bob Mills, who represents Ward 5 where Maine Energy is located, also voiced concerns about the cost to taxpayers.

“I’m very excited,” he said about the possibility of the closure, but he wants to make sure the city can afford the deal.

In addition, new tax revenue will likely be generated with the removal of the Maine Energy incinerator, a perceived detriment to development, said Casavant. New development will hopefully flourish bringing with it new tax dollars, he said.

He stressed that the deal is only between Biddeford and Casella; Saco wouldn’t be involved in the purchase even though Biddeford’s twin city would reap many of the benefits. Casavant said Saco’s involvement would make the deal more difficult.

Although the city may be willing to make the deal, it hinges on issues at the state level. According to Casavant, one of the pieces that must fall into place before the sale to the city can go through is Casella’s plan to purchase the Juniper Ridge landfill in Old Town.

The company currently operates the state-owned landfill. According to Casavant, late in the day on Tuesday the legislative council voted to allow a bill to consider the sale of the landfill to Casella. Before being considered, bills that come in after the legislative deadline must be approved by the legislative council.

Even though it’s been approved for consideration, it’s unknown whether the Legislature will have time to consider the bill this session, said the mayor. If not, there would be a long delay until a new group of legislators are elected in November.

Casella officials said they want the bill to be considered during this legislative session, said Casavant, possibly because they think they’ll face an easier time with the current Republican majority.

But the condition of linking the sale of Maine Energy to the sale of Juniper Ridge concerns at least one member of city council.

“No one would be happier to see this gone than me,” said Councilor Richard Rhames, who has been a staunch detractor of Maine Energy since it opened.

However, he said, he’s concerned about the “moral issue” of putting Biddeford’s trash problem on an economically weak town in northern Maine.

Additionally, Rhames said, the deal was presented to the council “at the eleventh hour, and we were told this is a good deal, but how do we freaking know. ”¦ We haven’t done our own due diligence.”

He would prefer not to be bound to Casella anymore, he said, but instead bring Biddeford’s waste to a publicly owned incinerator like Ecomaine in Portland, which is what the City of Saco did rather than sign another contract with Maine Energy when the last one ran out several years ago.

Whether or not the sale and demolition of Maine Energy goes through, Biddeford must decide how it will deal with its municipal solid waste in the future, and soon. A five-year contract between the city and Casella, under which city waste goes to the incinerator, ends June 30.

— Staff Writer Dina Mendros can be contacted at 282-1535, Ext. 324 or dmendros@journaltribune.com.