Mainebiz

V O L . X X V I N O. X X V I I N OV E M B E R 1 6 , 2 0 2 0 8 B U S I N E S S M A I N E B U S I N E S S M A I N E B U S I N E S S N E W S F RO M A RO U N D T H E S TAT E passage of a higher minimum wage, rent control and development restric- tions aimed at increasing affordable housing "a victory for the working people who make up the core of our community." Business groups and developers said the new ordinances will hurt, with the most immediately painful being the emergency mini- mum wage. Portland International Jetport now offering COVID-19 tests Portland International Jetport, with backing from the state, launched an onsite coronavirus test service, which offers the public free testing with results delivered in three days. A rapid test, with a one-hour turnaround time, is available for $25. Both tests are available to anyone — whether or not a traveler, whether or not from Maine — and don't require referral from a health care provider. Reservations are required. ree-day testing is also available at Auburn's Downtown Transportation Center. Army Corps of Engineers Issues permit for NECEC line e U.S. Army Corps of Engineers has issued a Avangrid Inc. permit for the 145-mile New England Clean Energy Connect corridor, clearing the way for construction to begin. e line would deliver 1,200 mega- watts of renewable energy generated by Hydro-Quebec to Massachusetts. e corridor runs from Beattie Township, in Franklin County on the Quebec border to a converter station in Lewiston. e project will create more than 1,600 jobs during its two years of construction, according to the Connecticut-based company. It also has announced $300 million in contracts for the project. Municipal- level permitting is still required, and NECEC must still get a permit from the U.S. Department of Energy. $5.2 million marine center upgrade slated for Walpole e University of Maine's Darling Marine Center in Walpole will A S K AC E B R I E F A n s w e r e d b y C a r r i e Y a r d l e y , a n a t t o r n e y a t Y a r d l e y E s q . P L L C The Association for Consulting Expertise (ACE) is a non-profit association of independent consultants who value "Success through Collaboration." The public is welcome to attend its regular meetings to share best practices and engage with industry experts. For more information go to www.consultexpertise.com. Q. I'm an employer, and I'm concerned about the current economic forecast. I have a variety of staffing needs from backroom support to project expertise; can you tell me more about how I might fill them legally with gig workers? ACE advises: As my colleague, Terry Johnson, has noted: "From an employer's perspective, independent contrac- tors, hired on a project basis and free to take on other gigs, may make more sense than a full-time hire in a bad economy." It's unlikely that most employers will look at a downturn as an opportunity to replace their workforce with a fleet of gig workers. There are also legal limits on when it can be done. Not all cases are clear-cut, and misclassification can be costly. In general, though, these are the hallmarks of an independent contractor: The worker is responsible for a result, as opposed to series of incremental tasks, and is free to determine how the result is achieved The worker has a skill set achieved through education or experience qualifying as a trade (electrician), profes- sion (optometrist), occupation (hair stylist), or business (distributor) The worker keeps profits associated with accomplishing the result cost-effectively The worker is free to hire or contract with others to assist in accomplish the result The worker free to offer her skilled services to others, provided she fulfills her contractual obligations to her customers and clients When these factors are pres- ent, the worker (in most cases) could be an independent con- tractor or could also be hired as an employee. At this point a business can look at economics, which will obviously include mat- ters such as insurance, access to benefits, withholding, and pay- roll taxes, and the cost of mis- classification. Carrie Green Yardley is an attorney at Yardley Esq. PLLC, a law firm pro- viding services to small businesses and their owners from start-up through estate planning. She can be reached at carrie@yardleyesq.com To learn more on this topic, see "What an employer should know about the gig economy" at consultexpertise.com/blog/9340266 @ Not all cases are clear-cut Portland voter initiatives get thumbs down from real estate investors B y P e t e r V a n A l l e n Portland — New measures approved by voters in Portland were designed to create additional affordable housing, give renters more protections and offer a range of workers greater compensation. But at least two of the referendums that voters passed Nov. 3 could have the opposite effect, putting the brakes on development and potentially driving developers to surrounding markets, several local real estate investors told Mainebiz. The referendums, introduced by People First Portland and approved by voters, could have a broad impact. In a letter to the city, shared with Mainebiz, the nonprofit urged the city to inform affected city departments immediately. Two areas that come out of the Green New Deal referen- dum might have the greatest effect on real estate develop- ers — and, by extension, future development. The new regulations call for an increase in affordable housing allotments. Up to now, a multi-family building with 100 units needed to offer 10 units as affordable housing. Under the Green New Deal, that same unit will need to pro- vide 25 affordable housing units. The provision also requires the use of union labor, which could further drive up skyrocketing construction costs, real estate investors say. "We couldn't have created a more difficult situation. It basically guarantees no new housing will be built," said Brit Vitalius, principal at Portland-based Vitalius Real Estate Group. "It ensures there will be no new housing … The best operators will leave the city. They'll just go somewhere else." Tom Watson, whose Port Property Management has 1,300 rental units in Portland, is developing a 171-unit apartment building at 52 Hanover St. and is redeveloping a Marginal Way apartment building with 200 units. "It will not be possible to build," Watson said. "It's strik- ing that this group that wants to build housing has essen- tially stopped that from happening. I say that with sadness because now basically every project is not doable, financially." Another landlord says the new regulations could backfire. "I see this blowing up in renters' faces. I think you'll see more conversions [of apartment buildings to condos] now," said Ron Gan, who owns a 6-unit apartment building and ran unsuccessfully for Portland City Council as an at-large candidate. "A lot of people are going to move to Westbrook, Biddeford and Brunswick." From left, Brit Vitalius, Tom Watson and Ron Gan L E F T A N D C E N T E R P H O T O S / T I M G R E E N WAY ; R I G H T P H O T O / P E T E R VA N A L L E N M I D C O A S T & D O W N E A S T C E N T R A L & W E S T E R N

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