JAY – Absentee ballots will be available Friday for residents to cast their votes on a partial tax-break for International Paper. The company proposes to invest $112 million to upgrade machinery and equipment at its Androscoggin Mill.

If voters approve a tax increment-financing plan June 23, IP would get reimbursed 60 percent of the taxes it pays on the new investment over a 20-year period. The town would keep 40 percent of the taxes on the new investment over the same time period.

Based on a current tax rate $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 taxes over the longevity of the agreement.

The town will continue to collect taxes on the original assessed $120 million value of the equipment and machinery combined.

Voters will vote on the issue between 9 a.m. and 8 p.m. on Monday, June 23, at the Community Building. On Friday, absentee ballots will be available at the town office.

IP proposes to invest $109 million in upgrading its No. 3 paper machine that makes coated paper and upgrade its wood process and peroxide plant. The company also plans to invest another $3.5 million in a transformer system.

The company is proposing the investment to increase efficiency, lower manufacturing cost and provide higher quality paper to its customers.

The proposed TIF agreement also calls for the paper company to pay for legal and appraisal costs, administrative fees and voting costs.

The agreement also adjusts the economic partnership ration if the production of No. 1, 2, or 5 paper machines is severely curtailed. IP would receive a lower reimbursement on the tax increment-financing plan if it doesn’t meet outlined production on the above machines.

IP is also required to consider for employment qualified applicants for maintenance and production positions from Jay, Livermore, Livermore Falls and Wilton. The company has also agreed, where reasonable, to use in-state vendors and suppliers.


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