EUSTIS – Voters have given a tax increment financing proposal presented by Stratton Lumber Inc. the thumbs up.

At a special town meeting Tuesday night, residents passed the proposal, 36-27.

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 newly approved TIF will immediately be effective, returning 69.2 percent of the new property taxes generated by the modernization project 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 employed at the mill.

“I am happy that it passed,” said Luke Brochu, Stratton Lumber’s general manager. “The fact that it was approved sends us a strong signal that they recognize the importance of this business to the community.”

Over the past few months, residents in the town have been inundated with information fliers about the TIF from both those for and against. The mill has also conducted a series of tours for community members, all with the goal of helping people become more informed about the business and the proposal, he said.

“I would have been happier if it was a unanimous vote,” Brochu admitted, “but it’s a controversial issue. It’s a vehicle that the state has made available to assist us and the people of Eustis showed that they agreed it was the right vehicle for Stratton Lumber at this time.”

Two of Stratton Lumber’s competitors have been recently approved for TIF assistance, including the Pleasant River Lumber Co. in Dover-Foxcroft and Daaquam Lumber Inc. in Milford, and Brochu said this will also help his business stay competitive in the softwood lumber market.

sdepoy@sunjournal.com

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