Millinocket Discussing Tax Proposal for Sale of Katahdin Paper Mills
Town leaders in Millinocket are meeting to decide whether to support tax proposals that could lead to the sale off the shuttered Katahdin Paper mills to a company in New Hampshire. Selectman in East Millinocket already voted Tuesday morning to move forward with the project by supporting some revisions to the offer by Cate Street Capitol.Board Chairman Mark Scally says it will now be sent on to the company in hopes officials sign off on it. Although he wouldn’t talk about the specific changes, Scally says the revised proposal is fair, just as the one that was sent from Cate Street was fair. The Millinocket Town Council started their meeting to at 4:30 p.m. Tuesday. Town manager Gene Conlogue says he believes councilors will vote in support of a plan to push the sale through.Union members are scheduled to vote on a new labor agreement with the company on Wednesday. Richard Cyr, a senior vice president for Cate Street, says the sale of the two mills has to go through by Thursday or the deal is dead. He says the company is facing a tight deadline to re-open the mill and start making paper to fill orders overseas.