EUSTIS – There will be an informational meeting at 6 p.m. Monday at the Eustis Community Center to discuss a tax increment financing proposal presented by Stratton Lumber Inc.

Originally, the assessed value of Stratton Lumber’s mill in Eustis was $7.2 million. However, the company recently completed a $3 million modernization project, which significantly increased its value.

The proposal to be discussed at the meeting would return a piece of the new property taxes generated by the modernization project back to the company.

In return, the company will continue to pay full property taxes on its original assessed value of $7.2 million and be able to help the community maintain existing employment levels at the mill. Currently, there are 52 people working at the mill.

By receiving the annual TIF reimbursement, the mill would be able to lower its overall costs and remain competitive in the softwood lumber market.

Maine’s TIF law allows all or a portion of the new local property taxes generated by business developments or expansions to be set aside as an economic development incentive. The assessed value, on which the new taxes are based, is then not counted against the town in calculating county taxes, state revenue sharing or education aid.

Two of Stratton Lumber’s competitors have been recently approved for TIF assistance by their communities including the Pleasant River Lumber Co. in Dover-Foxcroft and Daaquam Lumber Inc. in Milford.

In April, Eustis selectmen unanimously approved bringing the TIF proposal to a special town meeting, which will be held at 6 p.m. Tuesday, May 27, at the community building.

Under the proposal, Stratton Lumber would get 69.2 percent of the property taxes the company had to pay for the modernization project. That percentage is an estimate of the new property taxes generated by the project that Eustis would lose in the form of reduced state revenue sharing, increased county taxes and decreased state support for education if the TIF does not pass.

In additional to Monday’s meeting, Stratton Lumber has sent information to Eustis residents through the mail and it will conduct plant tours throughout the day Monday.

“I can assure you that any money received back from the town will go to reduce our costs and hold down our product prices, and will not go into the owners’ pockets,” stated Luke Brochu, Stratton Lumber Inc. general manager, in a recent release that stressed the importance of approving the TIF proposal to preserve the company’s existing market share.

For more information about the TIF proposal, contact Luke Brochu, general manager of Stratton Lumber Inc., at 246-4500, extension 224.


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