EAST MILLINOCKET, Maine — Town leaders discussed but did not opt to press liens against Great Northern Paper Co. LLC for the company’s delinquent personal property and real estate taxes, they said Monday.
The Board of Selectmen emerged from a nearly 1½-hour executive session Monday and took no action on the issue, which was added to the meeting agenda after Wednesday’s disclosure that the land and buildings of GNP’s Main Street mill would be auctioned Oct. 15 by one of its creditors, Northern Construction Services Inc.
The town’s attorney, Dean Beaupain, and board Chairman Gary MacLeod stressed, however, that no immediate action was necessary. Great Northern is delinquent on $658,657 in real estate and personal property taxes for the 2013-14 fiscal year, which ended June 30, and owes about half that amount for the 2014-15 fiscal year, officials have said. The company owns the Katahdin region’s last paper mill, which has been shut down since Feb. 6.
The town’s debt position, officials said, was being well-guarded by the town’s attorneys, who will be watching the situation closely.
“The town will be prepared to act at the appropriate time,” Beaupain said. “The town is not in a position to interfere directly with the auction. The creditor does have certain rights.”
Selectmen will meet Oct. 9 to discuss whether to press a personal property tax lien on the company, Selectman Mark Marston said.
Earlier this month, the town filed a 30-day warning notice that a real estate lien would be placed on the property, MacLeod said. He didn’t remember the date by which it was filed — Sept. 3 or 8 — but said the 30-day period would lapse before the auction.
The town’s attorneys said they need time to prepare a personal property tax lien on the company, Marston said.
Selectmen, Beaupain said, want to protect the town’s position and preserve the mill, the town’s largest single employer, and its ability to make paper. The board also wants the town to be paid its outstanding taxes and wants the building to be heated and maintained through the winter, Beaupain said.
Gov. Paul LePage told millworkers last month that several investors are interested in buying or investing in the mill but not with Cate Street Capital as a partner. Cate Street bought the East Millinocket and Millinocket mills for $1 in 2011 and created several Great Northern Paper corporations to represent various aspects of their investment.
Marston said he spoke to Great Northern officials within the last several days, and they expressed confidence they and Northern Construction would resolve their debt well before the auction.
Northern Construction seeks to recoup a $242,719 lien it placed on the property after Great Northern failed to pay it for mechanical, electrical and plumbing work.