East Millinocket Announces Purchase of Mill Site

Posted on July 22, 2020 | Success Stories
East Millinocket Maine Town Office

The Town of East Millinocket has announced that it has successfully negotiated and purchased the former Great Northern Paper Company mill site from Katahdin KI 50, LLC (a subsidiary of North American Recovery Management NARM) for $1,450,000.  This purchase was funded through $1,450,000 in grants. 

The Board of Selectmen, in an attempt to provide industrial redevelopment of the former GNP paper mill site, agreed to negotiate a purchase and sale of most of the former mill property from Katahdin KI 50, LLC, who are the current owners of the now defunct Great Northern Paper Company site in East Millinocket (also known as GNP East).  The Town has worked with the

East Millinocket Industrials, Inc. Board of Directors to develop a strategy to acquire, redevelop and market this industrial property.  Currently, there is about 215 acres of industrial zoned land along the West Branch of the Penobscot River which has about 222,200 square feet of reusable space within a collection of several buildings. 

On May 28, 2019, the Town voted in a Special Town Meeting to appropriate and approve allocating up to $75,000 in Fund Balance to fund the legal, consulting and other expenses related to the purchase.  On May 14, 2020, the Town voted to appropriate an additional $250,000 to fund the operations at the mill site for one year upon purchase. 

The Town signed an Asset Purchase Agreement with Katahdin KI 50, LLC and a Memorandum of Agreement with Metro Industrial Wrecking and Environmental Contractors on April 28, 2020 which was ratified at the May 14, 2020 Special Town Meeting of the Town’s Legislative Body.  Closing was completed on July 21, 2020.

Katahdin KI 50 and Metro Industrial Demolition & Environmental Contractors will commence demolition of the steam plant/biomass facility which should be completed within 18 months of the town’s purchase of the site.

The Town will develop the property as an industrial complex with multiple industrial users.  The Town will seek funding from a number of identified grants, foundation monies and low interest loans to assist in mill site improvements, building modifications and repairs, and final demolition/remediation.  Plans include efforts to market and manage the usable remaining buildings and land. 

We want to recognize the efforts of the East Millinocket Board of Selectmen and the East Millinocket Industrial Board of Directors who have been working diligently since February 2019 to bring this project to fruition.  We want to express our gratitude to the Northern Border Regional Commission and the State of Maine in their efforts to assist the town with the purchase of the property.

In addition, the Town has had tremendous support from the Congressional Delegation; Senator Susan Collins, Senator Angus King, Representative Jared Golden and their staff, as well as Governor Janet Mills, Attorney General Aaron Frey and DECD Heather Johnson and the DECD staff.  In addition, the Town wants to thank Senator Jim Dill and Representative Stephen Stanley and EMDC CEO Lee Umphrey and EMDC Director/Community Initiatives Vicki Rusbult for their efforts on the Town’s behalf.  The Town also wants to thank Maine DEP (including Chris Redmond) and Erik Phenix and his staff at Ransom Consulting for the Environmental Site Review Phase I and cost estimate work done on the site along with advancing the ball forward for Phase II remediation.

The Town’s attorney, Chris Howard of Pierce Atwood was a tremendous guiding force with negotiating and developing the necessary documents for a successful purchase of the facility.  We want to recognize the former owners, Jason Inoff, Robert Katz and Tom Zahorec of Katahdin KI 50, LLC and thank them for a smooth transition in ownership.  We wish the former owners much success in their future endeavors.

East Millinocket Board of Selectmen:
Margaret N. Daigle, Chairman
Kyle Leathers, Vice Chairman
Clint Linscott
Michael H. Michaud
Anthony Moscone

East Millinocket Industrials, Inc. Board of Directors
Steve Fraser, CEO
John Doe, COO
Steve Peabody, CFO
Michael H. Michaud
Margaret N. Daigle

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