Great Northern Paper Co. has reached an agreement with the town of Millinocket to settle a $2.24 million property tax dispute. The agreement also paves the way for the development of a $140 million pellet plant at the Millinocket mill.
The town council voted 5-0 yesterday to accept the agreement, which puts the town third in line for proceeds from Great Northern's auction of its No. 11 paper machine and other equipment. Ahead of the town are the auction company and the Internal Revenue Service. The auction is scheduled for Thursday.
The town issued a property tax lien on the Great Northern mill on May 21. If the auction doesn't generate enough cash to cover GNP's debt with the town, Council Chair Richard Angotti Jr. said Millinocket will revert back to the lien, according to the Bangor Daily News.
The agreement would allow Millinocket to close out this fiscal year, which ends June 30. It doesn't address the status of a second mill in East Millinocket, or the $657,900 due in property taxes there, the publication reports.
The Great Northern Paper Co. was formed by Cate Street Capital, which also established Thermogen Industries LLC, the company that intends to build the pellet plant at the Millinocket site.
