JAY – A public hearing on a proposed 20-year tax enhancement plan for a paper mill will be held Monday. International Paper proposes to invest an estimated $112 million at its Androscoggin Mill to upgrade a coated paper machine, wood operations, a bleaching plant and transformer system.

Voters will decide during a referendum June 23 if they want to give IP a partial tax break on its investment.

The town’s Budget Committee and selectmen will meet at 6:30 p.m. Thursday, May 8, at the Middle School library to discuss the proposal.

The public hearing will be at 6:30 p.m. Monday, May 12, at the Middle School cafeteria.

If the tax-increment financing program is approved by voters and the state, IP will be reimbursed 60 percent of the taxes it pays on the new investment and the town would keep 40 percent of the new taxes. It would establish two development districts – one for IP’s proposed investment of nearly $109 million to rebuild the No. 3 paper machine and upgrade its wood process and peroxide plant; and the other for a $3.5 million transformer system upgrade. The agreement would eliminate TIF districts established in 1995 that were not developed.

The mill would continue to pay taxes on the original assessed $120 million value of the equipment and machinery combined. The tax break would only be for new investment.

Based on a current tax rate of $15.80 per $1,000 of valuation, the town would gain a projected $6.1 million in tax revenues and IP would retain a projected $9.2 million in tax dollars over the life of the TIF.

dperry@sunjournal.com

Copy the Story Link