Cabela’s withdraws request for tax exemption

Commercial development moving forward

By Zack Anchors

Staff writer

After months of uncertainty, it appears a Cabela’s outdoor store, along with a commercial development that is tied to it, will be coming to Scarborough. The company, which was waiting for a ruling on a tax issue from the Maine Revenue Service before committing to a Maine location, has withdrawn the request for the ruling.

New England Expedition (NNE), the company behind the proposed Scarborough Gateway project on the Haigis Parkway, is moving ahead with their plans to design a $75 million campus-like development that will include a hotel, restaurants, retail stores, office buildings and, most notably, a Cabela’s store. At a special meeting of the Planning Board on Oct. 24, NNE presented its current plans for the site to the board.

Before the development can go ahead, NNE must receive approval from the Planning Board as well as approval of a contract zone from the Town Council.

“This will go through two more Planning Board meetings and at least two Town Council meetings,” said Dan Bacon, Scarborough’s assistant planner.

Next month, the project is expected to be included on the agenda of the Nov. 15 Town Council meeting and the Nov. 20 Planning Board meeting. Both will be public hearings.

Because of the delay caused by the wait for a ruling on the tax issue and because of time limitations with some of their contractors, NNE is anxious for the project to go forward, said NNE’s Gene Beaudoin.

Planning Board members expressed concern that the process with the town would happen too quickly, without careful consideration of the plans and a chance for the public to offer input. But Rick Shinay, an attorney representing NNE, said overwhelming support in Scarborough should keep the process from being stalled.

“Quite frankly, we don’t expect a public hearing to be a packed room,” he said.

At the meeting, various aspects of the plan were presented separately to the board, with different experts presenting information on the overall site plan, landscaping, lighting, traffic, architecture and signage. Among issues of particular concern to the board were the project’s impact on traffic, its level of pedestrian accessibility and its overall layout.

Traffic is a huge problem in this town,” said board member Bill Shanahan. “I’m concerned with the concentric circles of traffic impact this will have throughout Scarborough…the traffic consequences are dire.”

Tom Erico, a traffic engineer contracted by NNE, said an extensive study of the developments projected impact still needs to be done.

    Planning Board chair Susan Auglis said the study should examine what impact the development will have on throughout the town, in areas such as the Black Point Road and Oak Hill.

    Erico said 75 percent of traffic heading to Cabela’s is expected to be coming from the interstate. He also predicted the impact fee of the development to be around $289,000.

The architecture designs presented to the board included buildings that were intended to create a New England style and campus-like feel. Auglis said at a later meeting she wanted the board to review each building in more detail. Some of the buildings she did not like the appearance of, she said.

The board pressed for as much “interconnectivity” within the development, envisioning the site as a campus-like environment in which pedestrians can walk from building to building.

Cabela’s has been seeking a request for an exemption on sales tax for its catalog and Internet sales, claiming that those aspects of its business are different from its retail store operations. The company had said they would not locate a store in Maine if they did not receive a favorable ruling. In a letter sent to the Maine Revenue Service, Cabela’s did not explain why it was no longer seeking the ruling.   

“Cabela’s is presently reevaluating its expansion strategy in the northeast, which may result in a modification of our approach in Maine,” the letter states. “We would like to withdraw our pending ruling request.”

Some involved in the project have speculated that Cabela’s may be planning to open a call center or distribution center in Maine, which could be the “modification” of approach they refer to. By opening such a facility, they would no longer be able to make a claim that their catalog and internet business is not located in Maine, and would be required to pay sales tax those sales.