BANGOR (AP) – The shutdown of the Georgia-Pacific Corp. tissue mill in Old Town and the layoffs of its 400 workers could affect an additional 1,000 jobs in the region, a business specialist says.

“If it turns out that the mill does not reopen in any form, then that employment and that payroll is lost. Then there’s going to be tremendous ripple effect throughout this region and also throughout the state,” said James McConnon of the University of Maine Cooperative Extension.

Georgia-Pacific agreed to work with the state to find a buyer for 60 days after the March 16 mill closing. That deadline, along with Georgia-Pacific’s involvement, expired more than a month ago.

Gov. John Baldacci said Friday that the state is in the midst of talks with three potential buyers. “We hope to have a much clearer picture and to pull things together by the end of the month,” he said.

Meanwhile, Old Town and surrounding communities are feeling the economic impact of the shutdown.

The ripple effect “is huge,” said Jack Cashman, state economic development commissioner. “We’ve got chip mills down. We’ve got loggers and truck drivers affected, as well as the small businesses that depended on them.”

The estimate of 1,000 other jobs impacted by the closure is derived from what economists call an employment multiplier – a figure used to determine how closely various sectors of the economy are linked.

“For every job in the pulp and paper industry, there’s an additional 2.5 jobs supported in the economy statewide,” McConnon said. “That’s a high multiplier compared to the average retail employment multiplier of about 1.7.

The impact is being felt by retailers and other businesses owners in the area, both in terms of reduced sales and in what they’re hearing from customers about their fears and anxiety.

“There’s a real uncertainty of the community right now,” Governor’s Restaurant owner Randy Wadleigh said. “I think people are just cautiously optimistic, but maybe the reality is it won’t open again.”

Wadleigh, like several others, cited a dropoff in business since the mill closure. He said it was most noticeable in May, but some of that loss could be linked to University of Maine students leaving for the summer.

The equivalent of two full-time employees were let go, Wadleigh said.

The Old Town food pantry reported that the number of families and individuals seeking assistance has risen significantly since the mill closed.

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Information from: Bangor Daily News, http://www.bangornews.com

AP-ES-06-17-06 1101EDT