East Millinocket's financial future hinges on mill
East Millinocket is facing a major tax hike next year, but matters could get worse if the Great Paper Northern Paper Co. doesn’t reopen this fall or pay its overdue tax bill.
The Bangor Daily News reported the tax rate is set to increase 23% to $27 per $1,000 property valuation in order to support next year’s $6.8 million town and school budget.
If GNP doesn’t restart operations by August or September and doesn’t pay its $657,900 delinquent property tax bill, the town would have to raise taxes by 69% to $37 per $1,000 property valuation in order to support the town’s recently approved budget.
Cate Street Capital, the New Hampshire-based investment firm that bought the mill in 2011, had said it expected to reopen GNP by mid-May after halting operations and laying off 212 workers earlier this year, but that deadline has since passed.
Under next year’s tax hike, an owner of a $50,000 property would have to pay $253 more in property taxes, but if GNP doesn’t move on paying overdue taxes or reopening the East Millinocket mill, that owner would have to pay an additional $500. Town and school officials have already made deep cuts in their respective budgets, and it remains to be seen how they would react if the mill situation doesn't improve.
The Portland Press Herald reported the GNP workers impacted by layoffs were approved last week to receive Trade Adjustment Assistance from the U.S. Department of Labor.
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