City OKs funds for G-P mill planning

OLD TOWN – In preparing for whatever the future may hold for the city since Georgia-Pacific Corp.’s decision to close the Old Town mill, the council approved a maximum $50,000 expenditure for consulting services to help create a redevelopment plan for the facility.

The unanimous vote didn’t come without a couple of residents commenting in opposition to the expenditure, but councilors and City Manager Peggy Daigle stated that the investment is necessary to ensure the best use possible is found for the mill to keep it as a viable community asset.

“Yes, I think it’s a good idea,” resident Sara Lindsay said. “But is now the time?”

Lindsay said if money is to be spent from funds that the city receives from disposal fees as part of its agreement with the Juniper Ridge Landfill operator, she would rather see the money go to the school department.

She referenced the $740,000 budget reduction that the school board approved last week, noting that without a strong school system, the city will lose even more revenue from tuition students.

The board voted to scale back its proposed $1.5 million budget increase in order to keep the city’s tax rate at a more reasonable level.

Last week’s school budget cuts weren’t related to the mill shutdown, but there are more reductions to come as a result of lost tax revenue from the mill closing.

The council and school board have tentatively scheduled a special meeting for 7:30 p.m. Wednesday at the Old Town Public Library to discuss additional budget cuts that will need to be made because of the lost tax revenue from the mill. They also will discuss how the percentage of responsibility will be divided.

“The council and school board will determine how we move forward,” Daigle said.

The city expects to have a tax value assigned to the G-P mill at that meeting, which will help guide what happens next.

The city manager recognized residents’ concerns, but stated that the city needs to be willing to take a risk in order to make the facility as viable an asset to the city as possible.

“I think $50,000 is a small amount of money to get the reinvestment of a new owner,” Daigle said.

If the amount to be spent on the consulting process is to exceed the $50,000 limit set by the council, Daigle will bring the item back to the group for further discussion.

The city must consider all options, with the best case scenario being that the mill gets up and running at full capacity, where it is worth about $140 million and provides 34 percent of the city’s tax base. Worst case means no buyer is found, reducing the mill to its salvage value of $14 million.

As a result of Monday’s council vote, the city will retain the Eaton Peabody Consulting Group and forest products specialist Lloyd Irland as consultants.

Daigle assured residents that the city is working with state officials in their attempt to find a buyer before May 15, the date G-P has given for when it will no longer maintain the facility.

“This is out of the scope of probably everybody in this room. It is a very complicated deal,” Gary Sirois, council chairman, said. “We’re protecting the city’s interest in the best way possible. More of that will come out as we can reveal it.”