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Dam owner in Whitefield is protected by filing bankruptcy

Posted: Sunday, April 9th, 2017 at 12:39 am

In Northern Lincoln County an owner of a dam has filed for bankruptcy protection. Pleasant Pond Mill LLC reveals its liabilities far outweigh its assets according to the U.S. Bankruptcy Court.

The company that foreclosed on the dam over a year ago, Medius L3C, is owed $115,000 by the limited liability company. They also owe $350,000 in back taxes, credit bills, and legal dues.

Stacked granite, a laid fieldstone structure, and a broken computer are listed as assets.

The dam is confined to the lake that is between North Whitefield on Route 218 and north of the Route 194 intersection.

Due to filling Chapter 7 bankruptcy the Pleasant Pond Mill will have its assets sold and any thing left over will be used towards the creditor debt.

The dissolution manager for the Pleasant Pond Mill, Paul Kelly, said the decision to move forward with the bankruptcy was due to the overwhelming debts and the lack of a solution for repairing the dam.

Apparently, Kelly says the structure may or may not be a dam, if it turns out it is not a dam then it whether or not it can hold water is questionable.

The Federal bankruptcy trustee assigned to the Pleasant Pond Mill case will have to figure out the ownership of the dam stated Kelly.

Pleasant Pond Mill LLC is unclear of how the bankruptcy will effect the proceeding’s.

The state Department of Environmental Protection in January of 2014 issued an outlined course of actions in regards to water level. These actions were exactly what the Pleasant Pond Mill needed to repair and operate the decrepit dam. The Pleasant Pond Mill fought back by filing an appeal and sought mediation. However, over a year has gone by an there has been no resolution.

“It is now unclear whether, and how, the Order can be enforced,” said Sheldon.

The Department of Environmental Protection issued a notice of violation in September 2015.

Paul Kelly of Pleasant Pond Mill LLC is listed on the notice of violations. There is a laundry list of violations spelled out by Richard Smith and AquaFortis Associates LLC. The notice of violations lists the following offenses failing to meet the water level of 2014, failing to have DEP approval for water level management, not installing gauge, and not allowing the lake to raise between 2015 and August first gradually during the ice-out.

Arthur Enos who a decade ago sold the dam to Pleasant Pond Mill assigned the mortgage to, Medius L3C in July 2015. Medius L3C is a low profit limited liability company who organized the foreclosure and sale.

On January of 2016 Medius L3C held a public action for the foreclosed property on the steps of the Lincoln County courthouse.

No change of ownership has been noted in the Lincoln County Registry of Deeds. A man who owns lake front property in Clay Lake attended the auction and handed the auctioneer a sealed envelope. It has been 15 months since the even and still no change in ownership has been seen.

During the time the foreclosure was filed the DEP made sure to notify Medius L3C that if ownership of the dam were to change the new owners would be subject to the same conditions. The DEP would still subject the new owners to the water level order and they would need to review and approve an transfer.

The Lincoln County Registry of Deeds does however have a waiver of foreclosure of tax lien against Pleasant Pond Mill on file from September 2015.

Due to unpaid property taxes the Whitefield selectmen have never foreclosed on the dam.

“It’s not a big amount,” a chairman of the board of selectmen named Tony Marple, said. “We hope to be in the queue for whatever comes.”

The lake level needs to be restored and so town officials hope a solution can be found quickly.

During the drought of the previous summer grass has begun to grown on the upstream side of the dam. The Clary Lake level of water has been so low that many people are unable to use their docks and a boat landing built by the state in now unusable.

The Augusta Amory on May 1^st at 9 a.m. will host a meeting of the creditors.

 

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