BUCKSPORT, Maine — Local municipal officials met with the town’s economic development committee Tuesday night to tell them what they know about how the town’s financial situation will change when the local paper mill closes on Dec. 1.
What they know, beyond the obvious fact there will be a significant decrease in property tax revenue from Verso, isn’t much at this point.
“There are a lot of unknowns,” David Milan, Bucksport’s economic development director, told the committee. “We just don’t have a lot of information yet.”
Town Manager Derik Goodine said he and Milan have had several “what if” conversations with state officials after Verso announced Oct. 1 the company plans to shut the mill down by the end of the year. Beyond that announcement, he said, Bucksport officials have not received any information from Verso about what might happen after Dec. 1.
Goodine said he thinks the town will overcome the closure of the mill, which employs 570 people, but added it has been frustrating not having specific figures to work with, as he and other Bucksport officials try to prepare for the immediate future.
Several unknown factors that likely will affect the town’s budget include whether the closure might affect the town’s tax-increment financing agreement with the company, whether Verso might sell the mill or move any of its valuable equipment out of town and whether the state might offer any immediate help in covering the town’s education costs.
Verso has indicated it plans to continue operating the power plant on the mill property. Milan told the committee Tuesday the power plant is eligible for the state’s Business Equipment Tax Exemption and Business Equipment Tax Reimbursement programs but said eligibility is tied to the site’s status as a manufacturing facility.
If no paper or anything else is being manufactured on site, Milan said, Verso will lose those tax breaks, which could have implications for the property taxes it pays the town.
Milan noted the status of the property next April 1 will most affect the town’s property tax revenue. That is the day Bucksport officials use as a “snapshot,” he said, to determine the assessed value of every property in town.
Despite all the open questions, Milan added, the town’s most immediate concern is the fate of mill employees Dec. 1. While the company has said it will offer severance packages, how much money they will include has not been revealed, he said, and employees have been told they won’t be eligible for severance packages if they leave before Dec. 1.
Milan said he has been telling mill workers and local residents not to rush into unnecessary changes, especially when it comes to their personal finances and health care. He said that, though a lot remains to be determined, people should be patient and wait until the dust settles a little and more light is shed on the situation.
“Slow down,” Milan said. “Don’t make bad decisions based on bad information and a lack of information.”
