Lien discharge will allow for new phase of redevelopment to begin on the Millinocket mill site
We’ve been waiting for this outcome for two years! Our Katahdin is pleased to announce that we have reached a $450,000 settlement amount with the Internal Revenue Service (IRS) that will allow for full discharge of the $1.5 million federal lien on the 1,400-acre former Great Northern Paper mill site in Millinocket. This federal lien is a legacy debt that came with the property and has been a primary impediment to redeveloping the mill site.
Our Katahdin purchased the former paper mill site in January of 2017 and has been in active negotiations with four departments of the IRS over a period of two years before reaching settlement with the Appeals division located in New Hampshire.
Support from the Town of Millinocket, Governor Mills and her economic development team, the federal delegation, Eaton Peabody, Bangor Savings Bank and from local business and community leaders in the Katahdin region has been key to finalizing the settlement. “This settlement allows the redevelopment phase to begin. We will no longer have to focus on cleaning up the past, we can now refocus on building for the future,” said Sean DeWitt, President of Our Katahdin. “And every dollar that we don’t have to spend cleaning up the past is a dollar we can invest to grow jobs and opportunity in the Katahdin region.”
Upon IRS lien discharge, Our Katahdin will be eligible to activate its $5.3 million grant from the Economic Development Administration (EDA) that rebuilds and reconnects critical infrastructure on the Millinocket mill site, including power, water, wastewater, road, rail and fiber optics. The engineering selection process is expected to begin in late July.
The Town of Millinocket is a joint partner in the redevelopment of the mill site. “On behalf of the Town Council,” said Town Manager and Economic Development Director John Davis, “we are delighted that the sun is starting to set on this event. The redevelopment of the former mill site is an integral ingredient of the town’s economic future.”
Our Katahdin intends to develop the site into a multi-tenant industrial park hosting both traditional and innovative forest products businesses that can use Maine’s rich wood fiber resources. The site has also been of interest to potential tenants in the aquaculture, food production and data center industries.