An economic development organization has settled a $1.5 million debt to the IRS that was an impediment to marketing Millinocket’s former Great Northern Paper Co. mill site to tenants.
The Bangor Daily News reports that Our Katahdin agreed to pay $450,000 to remove the lien. The nonprofit bought the former mill site for a dollar from former owner Cate Street Capital LLC.
Sean DeWitt, president of Our Katahdin, said the lien caused a North Carolina firm to back out of a $30 million production facility for cross-laminated lumber.
Our Katahdin has raised $90,000 already to put toward repaying the IRS debt. Once the full $450,000 settlement is paid, Our Katahdin will receive a $5.3 million U.S. Economic Development Administration grant for infrastructure improvements.