Cate Street, Millinocket seek to resolve tax debt
Cate Street Capital, the New Hampshire-based investment firm that purchased two mills in the Katahdin area in 2011, is seeking to resolve its tax debt with the town of Millinocket.
The Bangor Daily News reported that leaders from Cate Street met with Millinocket town officials in a closed-door meeting on Friday, with both sides after it ended saying they were encouraged, though they declined to discuss any details.
“It was a great conversation,” John Halle, Cate Street’s president and CEO, told the BDN after the meeting. “It was about our relationship.”
Town Manager Peggy Daigle told the newspaper the two parties have agreed to “try to work this out in a spirit of cooperation. [Cate Street is] an integral part of our economic future.”
The town has filed a lien against the company for $2.24 million in unpaid taxes. Cate Street has previously said the lien and any other liens filed by the towns of Millinocket or East Millinocket, where it owes $657,900 in taxes, would interfere with its revitalization efforts.
Cate Street has been planning to launch a $140 million wood pellet mill in Millinocket and reopen its mill in East Millinocket, which halted operations earlier this year and laid off 212 workers. But Halle and a spokeswoman for the company declined on Friday to say when those efforts would happen. The company formed Thermogen Industries to open the wood pellet mill and Greater Northern Paper Co. to operate the East Millinocket mill.
The towns of Millinocket and East Millinocket are both under extreme financial pressure because of the unresolved debt and the uncertain status of Cate Street’s mills.
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