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March 14, 2014

Town blames layoffs on mill's overdue tax bill

East Millinocket officials said they’ve laid off four municipal employees to help offset the impact of $657,900 in overdue tax bills from Great Northern Paper Co.

The Bangor Daily News reported spokesman Scott Tranchemontagne said the company is doing all it can to restructure its operations to restart its East Millinocket mill in May and pay its overdue taxes. The company also owes the town of Millinocket $2.3 million in property tax on its Katahdin Avenue industrial park. Tranchemontagne told the newspaper that passage of a bill to let the company profit from selling hydropower it buys at a discount from Brookfield Asset Management would help it to restart and pay its taxes, but he declined to say whether the mill’s reopening is contingent upon the hydropower deal.

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