News

Joint Leaders dispute over Pennell
By Elizabeth Prata

Gray-The Joint Leaders of Gray, New Gloucester, and SAD 15 meet monthly to discuss issues common to the Boards of the towns that comprise the School Administrative District. The Chairs of the elected Boards along with the Administrative leaders (Managers and Superintendent) meet at SAD 15 Central Office at 7:30 a.m. for an hour.

Building relationships

The purpose of the meetings, begun by former Superintendent Judith Lucarelli over five years ago, is for the leaders to keep abreast of common issues and to build relationships between them.

That relationship was dented last week when Gray Council Chair Pam Wilkinson and Manager Mitchell A. Berkowitz delivered the news that the town intends to sue over Pennell Institute.

The Pennell property comprises five acres and two buildings that has been in trust with the School Administrative District since the SAD was formed in 1962. The Pennell will established two trusts, one was to build an institute for the cause of "learning, education, and good morals," and the other was a $35,000 trust to go toward fuel and teachers' salaries. The smaller trust is in Gray's possession.

They want Pennell, no matter what

The Town has been attempting to obtain Pennell for almost two years, and has been using a variety of means to complete their mission. Initially, talks were of expanding town offices to the adjacent Post Office, which had recently been emptied. The Manager and Council told taxpayers that the administrative offices needed more room and requested that townspeople buy the Post Office so they could expand. Taxpayers approved the $160,000 expenditure in 2002.

No moving plan was ever implemented, though, and when the SAD decided to close Pennell the Council thought that option might be even nicer than the Post Office.

However, Gray officials became angered when the SAD requested information from the AG on proper school closure procedures, because the AG's response indicated the SAD could close Pennell without having to go through the School Closure Act, but could also sell or swap it for "fair market value." The AG's reasoning is that the trust must have an asset in it in order for the trust to perpetuate. Giving the building away would extinguish the trust. Hence the 'fair market value.' Gray officials were upset because they had wanted to receive the building for free. They sent a civil counter-suit up to the AG. The AG asked both entities to work it out without suing. Gray decided to shelve this first suit for a year.

The impediment to the Pennell-as-town-office idea was that the trust stipulated that the building be used for education. With only Municipal administrative offices occupying the building, that stipulation would not be met. So the Council decided to share the building with the SAD Central office staff and the education stipulation would be covered.

Although the SAD had not indicated that they needed to move from their present offices, they hesitantly began discussing a joint tenancy with Gray, discussions that lasted over 18 months. Finally Memo of Understanding (MOU) was drafted. SAD officials were not fervent about the idea because the Memo as drafted actually extinguished the trust after 25 years. In the end, the SAD's split 'yes' vote in August 2004 confirmed their hesitancy. Gray ended up voting no, killing the MOU.

Undeterred by setbacks

Back to square one, Gray still pursued the idea of obtaining the building. New information had come to the Council and Manager indicating that a 1954 deed transfer may have split Pennell from the rest of the trust and that as a result Gray might own the building free and clear. That is the argument that the Mr. Berkowitz, Councilor Matthew Sturgis, and Councilor Gary Foster went to the AG with in October. Attorney William Dale argued on the town's behalf while SAD Facilities Chair Peter Pinkerton, Superintendent Victoria Burns and their attorney Bruce Smith argued on behalf of an intact trust.

Second trust little discussed

Meanwhile, the SAD was getting ready to winterize the building, and heat it only minimally for the Gray Historical Society. The SAD requested that Gray share that cost, and requested $5,000. Gray declined in no uncertain terms, although they are Trustees of a $35,000 Trust that was set up expressly to offset fuel costs.

Asked if Gray's $35,000 Pennell trust has ever been executed, Ms. Wilkinson said "No. It has been overlooked."

After two months of waiting the AG decided in late December that the 1954 deed transfer did not give Pennell to Gray.

Actions from Executive Session

Undaunted and vowing to continue, Gray held an executive session on Tuesday, January 4. The stated purpose of the executive session was to mull the implications of the AG decision, but in addition to deliberating the Council decided to take actions at that time. (see related article, Was Council's action illegal?)

The decided to ask the AG for a reconsideration. They urged the AG to decide within two weeks. If the AG declines or the answer is the same, the Council will send a suit to Superior Court petitioning the judge for a verdict. The Attorney General would be the entity arguing against the Town in court.
Grays first suit still languishes on the court's shelf, its shelving expires at the end of March and Gray will have to either withdraw it or move forward with it. If they move forward, there would be two suits from Gray over Pennell toward the SAD.

Who said what at Joint Leaders

This latest chapter in the Pennell saga was reported morning after the Executive session to the Joint Leaders; SAD Board Chair Alan Rich, Ms. Burns, Business and Finance Director Terry Towle, New Gloucester Selectmen Chair Steve Libby, and NG Manager Rosemary Kulow.

"It is the Attorney's belief that we should continue to Superior Court. He thinks the 1954 action has merit," Ms. Wilkinson explained. "We've gone 85% of the way and after all, the AG only sent us an opinion, not a decision. We decided to move forward to court so that this would be 100% decided. We've gotten to this point, we might as well go further."

"Ou legal involvement will be poassive from this point," Dr. Rich said. "We are not spending one more dime and we are certainly not following Bill Dale up to the AG's office at $1,000 a day. The ball is in your court."

Mr. Berkowitz said that the suit would also ask the question of how will the inhabitants of Gray benefit if the building is to be sold.

Answering promptly, Dr. Rich responded that the SAD has shepherded the trust appropriately for over fifty years with Gray students benefiting from the trust and they would continue to do so.

He also reminded the group that they should not "lose sight of the fact that we are heating the place for the Gray Historical Society and are being charitable in that respect. By that token, however, asking New Gloucester taxpayers to fund another town's historical society is inappropriate. We are being good sports in this. My preference is to mothball the building."

Mr. Libby noted Dr. Rich's rejoinder and said, "Let's move our Historical Society in there."

Laughter broke the rising tension but the point was made, with both Mr. Berkowitz and Ms. Wilkinson responding, "So noted."

The Gray Council will discuss the Pennell litigation at their January 18 meeting.