MILLINOCKET – A Kennebunkport boat company that wants to locate a new manufacturing site in Millinocket will receive a $50,000 loan from the town.

The loan to American Boat Builder’s Inc., doing business as Avenger Boats Inc., will be paid from the town’s Community Development Block Grant Revolving Loan Fund, established several years ago. The company expects to employ about 600 people within three years and says an additional 2,000 support jobs could be created if departments in the Transportation Security Administration approve their proposal for a Homeland Security base or port security base in Maine.

Town Manager Gene Conlogue described the business proposal as a golden opportunity for Millinocket to bring an entirely new industry to the area. He said the company builds aluminum security boats used for purposes including military and commercial use.

“This town has never had an opportunity since 1899 to create 600 jobs at once,” said Conlogue. “To roll the dice for $50,000 to bring them here is a pittance compared to the possible benefit to this community and this area. The risk is much greater to do nothing and let this opportunity go.”

Some residents expressed mixed views about the risks of the proposal, while others encouraged the council to support it. “This could be the savior of this town,” said Ray Campbell.

Conlogue said the collateral for the loan included personal guarantees by the two company principles and a security interest in one of their prototype boats. He said the appraised value of the two boats was $775,000. He said there was a $500,000 loan against that value. He said the town would place a lien on one of the boats.

In other business, the council reversed an earlier action to reduce the hours in the tax collector-town clerk office from 40 to 36 a week and reinstated the hours cut at the library.

Councilor Matt Polstein, who earlier proposed the change, said he was troubled the council had asked one department to shorten its hours, but was not willing to make changes in other departments.

Councilor Gail Fanjoy said the move would likely be temporary. Once the future of Great Northern Paper Inc. becomes clearer in a few days, she said, the council would revisit this issue and others.

Chairman Don McLaughlin agreed. “Don’t think that we might not be back here next month reducing everybody’s hours,” he said. McLaughlin said one suggestion made to him was that all employees be cut one hour.