In April 2011, Harpswell Oceanic Center Inc. presented to the town of Harpswell its concept for a land-based aquaculture business and research center. The Center expressed interest in leasing the newly created Marine Business District at Mitchell Field. Lease negotiations began in June 2011.

At their Nov. 1 meeting, Harpswell selectmen decided to deny the Harpswell Oceanic Center proposal to lease town property.

We firmly believe Mitchell Field is well suited for marinerelated businesses, particularly an aquaculture business park. We feel the Harpswell Oceanic Center concept is an excellent fit for the Master Plan.

Since we first proposed this concept, the Harpswell Oceanic Center and its affiliated commercial entity, RAS Corporation, received multiple grants from the Maine Technology Institute allowing us to advance our technologies and to assist with site planning at Mitchell Field.

Together, we have expended more than $150,000 and hundreds of volunteer hours — time and money the Center indicative of our commitment to the Mitchell Field site.

Why does the Center need a lease now? A specific site is needed for site plan design. Rights, title and interest are required for various long-lead time permits. And investors want a specific site to show commercialization potential.

Harpswell Oceanic Center has requested no funds from the town, no tax relief or other subsidy. The town and Harpswell Oceanic Center agreed to pursue a market-based, arm’s-length lease for the Mitchell Field Marine Business District, with the town responsible for infrastructure outside the district.

Despite more than a year of negotiations, the town and Harpswell Oceanic Center have not been able to reach agreement in some critical areas.

— Annual lease payments. Land values indicate rent less than $50,000, using the town’s own conversion formula. The Center has proposed rents higher than market to offset lower rents in the initial, inactive years. But the town feels market rents are higher.

— Additional lease fee. The Town is asking for 1.5 percent of gross revenue from the commercial operator — a clause not commonly found in ground or building leases, which would impede our ability to attract investors.

— Viability of business. The Center has agreed to performance and development milestones which, if not met, would trigger reversion of the lease to the town. We understand the town’s interest, but we believe investors and lenders are the ones to make this decision.

— Guarantors of performance. The town insists that principal officers be personally liable for environmental issues and fraud. The proposed aquafarm is a very “green” business to be run to the highest industry standards. The Harpswell Oceanic Center feels there are no meaningful environmental risks and that liability insurance would cover any losses.

— Transfer of ownership. The town requires approval of all subleases and change in Harpswell Oceanic Center ownership — not a normal requirement.

— Subordination. Banks typically require first call on any assets up to the level of indebtedness. They require the town’s claim for lease payments to be subordinate to bank debt. No subordination will preclude any bank financing by HOC or RAS Corp, almost surely killing any prospects for needed borrowing.

We’re disappointed we have not yet been able to come to an agreement on these terms and do not have a lease that would allow our activities to move forward here in Harpswell.

It has become increasingly important that RAS Corporation secure a definitive site. The company is actively working to secure additional grants from various sources and to secure significant financing.

RAS Corporation has been forced to focus on alternative sites, in locations not as strategically desirable as Mitchell Field but which offer advantages in timing, cost and commercial flexibility.

The encouragement from the citizens of Harpswell is gratifying, and we sincerely thank the community for its support.

Perhaps someday a project like the Harpswell Oceanic Center can be developed at Mitchell Field.

JOANNE ROGERS is president of the Harpswell Oceanic Center, a nonprofit organization.