Friday, May 16, 2008
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Mud Breakfast looks at forestry after the paper companies
Barbara Tetreault
BERLIN — For generations, the paper companies owned thousands of acres of timberland in Coos County that they managed to provide wood for the mills.
But over the last 20 years the paper companies have sold off their land holdings in northern New Hampshire and closed all but the Fraser mill in Gorham.
At yesterday’s annual Coos Foresters “Mud Breakfast” workshop, the main topic was ‘Forestry After the Paper Companies”. The large crowd in attendance heard from representatives of the Timber Investment Management Organizations (TIMO) and the Real Estate Investment Trusts (REIT) that now control the land that once belonged to Brown Company, Boise Cascade, International Paper, and Mead.
Charlie Thompson of GMO said a TIMO acts similar to a mutual fund, investing in timberland to generate returns for investors. He said investors include a variety of institutional clients and pension fund operators.
GMO manages two million acres of timberland in the United States including 24,000 acres of former International Paper land in Coos County. It has a main office in Boston.
Thompson noted that TIMO bashing is in sport now but stressed that the TIMOs purchased timberland that was on the market.
“Nobody has made the former owners sell their lands,” he said.
He said one complaint lodged against the TIMOs is that their prime interest is generating financial returns. He suggested the paper companies were also interested in a profit.
Thompson said another complaint is that the TIMOs are not locally based. But again, he pointed out paper companies with headquarters in Connecticut, New York, and Toronto.
What is most critical for TIMOs, Thompson said, is the price paid for the land when it was initially purchased. If TIMOs pay too much, it is hard to make up that investment.
The GMO lands are actively managed by American Forest Management. AFM Regional Manager John Bryant said AFM manages 4.5 million acres across the country. Bryant said he worked as an industrial forester before becoming a consulting forester.
Compared to paper company ownership, Bryant said TIMOs provide less intensive but more extensive management. He said they do not have to respond to individual mill crises and can manage timberlands to generate their highest value.
Bryant said TIMOs have better access to investors and more influence over management decisions.
Wagner Forest Management, based in Lyme, both invests and manages timberland, with 2.7 million acres in five states and two Canadian providences.
Tom Colgan of Wagner said the TIMO’s job is to find ways to generate income from the timberland - through selling timber or leasing sites for camps or wind turbines.
Colgan said Wagner has a 50-year wood procurement contract for the former Mead lands it holds in the Thirteen Mile Wood area. The wood goes to the New Age mill in Rumford, Me.
Managing large tracts of land is not easy and Colgan said TIMOs have to be flexible, nimble, and unemotional in looking at the land. He said the fortune of wood investors is tied to the forestry industry, which he noted is not pretty right now. But Colgan said he believes there is going to be a demand for wood in the long term.
David Degruttola of Landvest echoed many of the points made by Colgan. He said it is important for land managers to understand the goals and objectives of their clients.
Plum Creek, which owns 33,000 acres in Wentworth’s Location, Errol, and Cambridge, is a Real Estate Investment Trust (REIT) which has a different tax structure than a TIMO. Overall, Plum Creek owns and manages eight million acres of land nationwide.
“Timber is our core business,” said Mark Doty.
Doty said his company’s experience in Coos County has been very good. He said as markets for wood are moving further away, fuel costs are becoming a concern. He also mentioned the condition of Route 16, to knowing nods from the crowd.
While Doty acknowledged wood markets are down now but said he expects them to improve. He said he looks forward to the proposed wood pellet and biomass plants in Berlin.
Fountain Forestry is not a TIMO or REIT. The firm manages 8,000 acres of the Bunnell Memorial Forest tract for a private family. The tract has a conservation easement as a working forest.
All of the speakers said the lands they manage meet Sustainable Forestry Initiative standards and allow public access. While some landowners allowed snowmobile access, most indicated they did not allow ATV use.
Yesterday marked the18th annual Mud Breakfast, held this year at the White Mountain Chalet. After the morning workshop, participants took a tour of the Wagner lands along the Thirteen Mile Woods.
County Commission approves new health insurance plan
Craig Lyons
LANCASTER— The Coos County Commissioners approved a new health insurance plan for any new hires made after July 1.
The commission met on Tuesday with Primex representative Carl Weber. Weber presented the board with a new insurance plan that would offer savings for the county and be beneficial to the employees.
The commission all voted to approve the new health insurance policy.
Weber said he estimates switching to this new plan would save the county between 10.5- 13 percent on health insurance. The plan, names HMO Low, focuses on preventative care, according to Weber.
“It’s quite a savings, even for the employees,” said commission Chairman Bing Judd. “I think it’s definitely something we should look at.”
Aside from the cost to the county, the new plan also offers a saving to the insurance pool.
The plan encourages policy holders to try using generic prescriptions, regular doctor visits and overall preventative measures, according to Weber.
If people in the policy group are in better health, the cost will be reduced to the pool, said Weber.
The plan adopted by the commission also included reimbursement for eyeglasses and lenses, as well as a reimbursement for gym memberships.
Weber said both of these options factor into the preventative care emphasis in the plan.
“Incremental changes have a big impact,” said Weber.
The plan introduces a $500 deductible for the new employees. This electable covers more major procedures like CAT scans, MRI procedures, skilled nursing and other procedures, according to Weber. He added that the electable is only paid once by the policy holder per year, if one of these procedures is done.
“I have no problem with switching to one of these plans,” said Commissioner Tom Brady.
Though, this new plan would only be available for new hires. Weber said it’s possible to switch to this plan in the future for the current employees during contract negotiations.
In other business, the commissioners voted to increase the private rate at the county nursing home.
Administrator Jeannette Morneau said currently, Coos County’s private rate is the lowest in the state. She added with the low Medicaid rate and to prevent an extra cost being passed to the taxpayers, she recommended to raise the rate.
Morneau recommended raising the private rate to $200 per day, from the current rate of $175 per day.
“I just can’t support that,” said Judd. “Not in these times.”
Rather than going as high as $200, the commission settled at raising the rate to $190 per day.
Donations are the key to summer learning opportunity
Gail Scott
GORHAM — Thanks to donations from several organizations and businesses, 21 Gorham students will be able to take advantage of a remarkable summer learning opportunity called “Mindflight” at Plymouth State University in Plymouth.
For six days and five nights the sixth, seventh, and eighth grade students will live at Plymouth State, living in the dormitories, eating in the school cafeteria, and learning from Plymouth State University teachers.
The middle schoolers had the choice of one of five curricula: Ecological Expeditions, Multimedia Madness, Mythic Masks of Creative Expression, Sights & Sounds of Space, and Video Ventures. Nine of the students have chosen Ecological Expeditions; seven have chosen Multimedia Madness; one has chosen the Mythical Masks of Creative Expression; four have chosen Video Ventures.
Only one hundred “high achieving, motivated students” are accepted for this program, according to the program brochure.
“We’ve been sending students to the program for six years,” said Gorham Middle High School Counselor Matt Saladino. “The first year just two went, then four, then ten. Now we’re up to 21. I’m impressed by all the interest. This means a week out of the summer for academics and the kids come back energized about going to college. The programs really pique the kids’ interest in academics.”
But the program is not cheap. To send 21 students, Saladino said $10,500 was needed. Fortunately community-minded organizations have stepped forward. The non-profit Gorham/Randolph/Shelburne Education Fund, a fund maintained by donations from Gorham Middle High School alumni, has donated $4,000.
“The purpose of the fund is to enhance the education of Gorham, Randolph, and Shelburne students,” said spokesperson Jackie Corrigan, “providing something that will not ordinarily be provided by the taxpayers.”
The Randolph Foundation contributed $1,500 to support the three Randolph students who will be going. By its charter, the Randolph Foundation is limited to helping residents and causes directly related to the town.
Other donors include Berlin City, The Gorham Boosters Club, the Kiwanis, the Rotary and Saladino’s Italian Market. Saladino said he expected other donations that will bring the sum to the necessary total so that all the students who have expressed interest will be able to go. This year the program is from July 20-25.
Three repeat students couldn’t say enough about the program.
Cassandra Poulin, 13, wouldn’t miss it. Last year she was in the multimedia program. They studied dreams, learned how to create a personal web site, and created a remarkable web performance piece that incorporated “buttons” and “links” and carries the viewer from one intriguing location to another.
“It was really fun,” she said.
Sam Jensen and Brett Labnon, both 13, both from Gorham, were in the Space program. Among other things, they visited a planetarium and created a web site on super nova, keeping a journal on every day’s activities.
“It was so cool and huge!,” they said of PSU, "and it's not even one of the big colleges."
“The library was great! I felt like I was in Star Wars,” they said.
“It’s a phenomenal program,” said Saladino. “We are really grateful to everyone who is helping the students attend Mindflight.”
Coos economic development bills pass
Barbara Tetreault
COOS COUNTY — Two bills benefiting economic development efforts in Coos County - one at a state level and one at the national level - passed their respective legislative bodies Thursday.
The Coos County Tax Credit bill passed the state Senate yesterday. It had earlier passed the House.
As amended, the bill provides a business that creates a job in Coos County paying at least 150 percent of minimum wage a $750 credit against its business taxes for each of the first five years, while a company that creates a job paying 200 percent of minimum wage would receive a $1,000 credit. Also, the cost of health benefits can be added to a wage to determine whether the newly created job qualifies for a tax credit.
"I believe strongly that this is one of the best investments we can make in the North Country and our state's economy. I want to thank the Senate for its strong support of this new economic development tool." said Gov. John Lynch. "It is very clear that Coos County is struggling, and struggling even more than other parts of New Hampshire. This legislation will help provide some much needed relief."
The U.S. Senate passed the Farm Aid bill which would create the Northern Borders Regional Commission. The NBRC would invest $30 million per year in federal resources for economic development and job creation in the most economically distressed areas of Maine, New Hampshire, Vermont and New York. It will be able to provide federal funding to bring improvement in roads, rail, broadband, job training, energy generation, and health care in Grafton, Coos, Sullivan, and Carroll counties in New Hampshire.
The Farm Bill has already passed the U.S. House and heads to the desk of President George Bush who has threatened to veto it. The bill, however, passed both the House and Senate by large margins.
The Northern Borders Regional Commission bill was originally sponsored by Rep. Paul Hodes, (D-N.H.).
“The Commission will help bring investment, leadership, and focus to the North Country’s economic development efforts,” said Hodes.
“The people of the North Country need a new start and more resources to rebuild their communities for a new economy. There are already efforts underway to help build industries throughout the region and this Northern Border Regional Commission, coupled with serious efforts on the state level led by Governor Lynch, will help revitalize this region and rebuild communities looking for help,” Hodes said.
A spokesman for Hodes said the bill authorizes the commission. Hodes and the bill’s cosponsors will work to get the money included in the appropriations bill this summer.
