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July 29, 2013

Cate Street reaches tax-repayment plan

Cate Street Capital, owner of the Great Northern Paper Co. mill in East Millinocket, has reached a tentative agreement to pay the town $350,000 as a half-year payment on its past-due property taxes.

The Bangor Daily News reported the Portsmouth, N.H.-based investment company also has made a verbal commitment to pay $900,000 in property taxes it owes for the 2012-13 fiscal year in Millinocket, where its subsidiary Thermogen Industries plans to build a torrefied wood plant on the site of a vacant paper mill. 

Millinocket Town Manager Peggy Daigle told the newspaper she will seek a written commitment from Cate Street to pay its property taxes, which would allow the town to apply for a $1 million Tax Anticipation Note, or loan, to get the town through a cash-flow crisis stemming from the unpaid property taxes. Scott Tranchemontagne, a Cate Street spokesman, confirmed with the BDN the property tax agreements with both towns.

Earlier this spring, when news of the unpaid property taxes first surfaced, Tranchemontagne attributed Cate Street’s money woes to a seasonal rise in wood prices during mud season and poor market conditions.

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