From the NERAIL list. The waterfront rail yard contains the railroad's wooden roundhouse and turntable, dating back several decades into the steam era:

BELFAST & MOOSEHEAD LAKE RAILROAD TOLD TO LEAVE TOWN: Despite a last-minute
appeal by the Belfast & Moosehead Lake Railroad for leniency, the Belfast,
Maine City Council has voted to terminate the railroad's lease and ordered the
line to pack up and leave the waterfront rail yard. The council reached its
decision after a lengthy closed-door meeting with City Attorney William Kelly
Tuesday night. The council voted 4-0 Tuesday night to end its lease with
Railstar Corp., the operator of the excursion railroad. The vote to order the
railroad off city property by March 4 was unanimous.
Bangor Daily News - 2/03

From the NERAIL list, more light on the subject:

Hello All,
Here's the latest from Waldo county Maine:
1. The City Council from Belfast voted on Feb 1 to cancel the
lease on the Belfast yard property, and has evicted the Belfast and
Moosehead Lake Railroad from it.
2. There is a clause in the lease on the remaining property - if
the property in Belfast was lost - the lease would be lost on the rest of
the property as well.
3. Due to the clause - the new management has been evicted from
the property, no trespassing signs placed everywhere, locks changed, and is
under control of one person, representing the Clifford foundation. This
person, and the Clifford Foundation have, based on everything I have seen,
no intention of running a railroad.
If the property in Belfast cannot be recovered or renegotiated -
the railroad will be lost.
I am asking that all who care about this railroad, railroads in
general, or railroad history please send your comments to the Belfast Mayor,
and City council.
I have arranged a form that when submitted will open your mail
program and enter everything, except a subject line, for you:
http://www.rrnne.net/savebml.html
Alternatively, for those that wish to type up their comments-
they can be sent to savethebml@rrnne.net - and this will be forwarded to
the appropriate parties, automatically.
Thank you all!
Here is an article on the shut down:
http://waldo.villagesoup.com/Opinions/G ... oryID=2793
Send this to all mailing lists!
Lets Save a Railroad!
cya, Joey

--Joey Kelley, HAPT, L.J.L.P.T., Volunteer MNGRR, Webmaster RRNNE.net--