Officials in Millinocket have struck a tentative deal with Great Northern Paper to pay the town nearly $1.2 million in overdue property taxes.
GNP owns a shuttered paper mill in Millinocket, and another one in nearby East Millinocket. According to documents sent to MPBN by Millinocket Town Manager Peggy Daigle, GNP - which is controlled by New Hampshire-based investment firm Cate Street Capital - will pay $225,000 by the close of business today.
Three further payments are due to be made, with balance paid in full by July 21.
Daigle says the town needs the money to continue operating through the summer. "We're going to be bumping up against a difficult period of time if we don't start getting payments to be able to continue to operate," she says.
Daigle says the deal with Cate Street is dependent on money generated from the recent sale a key piece of GNP property - the Number 11 paper-making machine, which is reported to have fetched about $2.5 million at auction last month.