Town to seek TIF funds owed by Canadian firm

MILFORD – The town intends to pursue $160,000 in taxes owed by a Canadian company as part of a tax increment financing deal.

Daaquam, a Canadian company based in St. Juste, Quebec, had been scheduled to take over the former International Paper facility known as the old Costigan stud mill.

Daaquam was scheduled to have the mill up and running sometime in 2004, but postponed that plan earlier this year due to problems with the company’s operations in Canada.

Town Manager Jim Hancock met with Daaquam General Manager Francois Sequin more than a month ago, requesting that the company tell the town its intention for opening the facility.

Hancock expected a reply two weeks ago, but still has not received a response.

“We haven’t had any contact [with Daaquam],” Hancock said Friday.

Sequin is on vacation until next Tuesday and couldn’t be reached for comment.

Daaquam Finance Manager John Sirois said Friday that the project is still on hold, and he wasn’t sure if the company still was planning on opening the mill.

In the original agreement with the town, Daaquam Maine Inc., a subsidiary of the Canadian company, was to pay $160,000 as part of the tax increment financing plan.

When the mill failed to open and Daaquam didn’t pay the TIF, it put the town in a “precarious” situation, Hancock said previously.

“It’s our position that Daaquam owes that,” Hancock said Friday. “That was the minimum amount due regardless of whether the mill was operating or not.”

He noted that Town Attorney Jay Otis of Brewer and officials with Eastern Maine Development Corp. agree.

When the money didn’t come through, officials re-evaluated and increased the anticipated mill rate, Hancock said.

In June, the town manager estimated the tax rate to be $21 per every $1,000 of valuation.

He said Friday the rate was lowered to $19.80 once the town’s property revaluation figures came in.