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August 29, 2008

Councilor says town should seize mill

A Millinocket town councilor wants the town to look into seizing control of the Katahdin Paper Co. mill in town, which its owner wants to close indefinitely, to turn it into a public utility.

Town Councilor Scott Gonya, who is an employee at the mill, says the mill's shutdown would be harmful to the community and believes Millinocket should take the mill by eminent domain, which allows a governmental entity to seize private property without the owner's consent for civic use or economic development, according to the Bangor Daily News. Gonya argued that if the mill generated power for the community, it would lower town utility rates and make extra electricity to sell to the New England power grid. 

Brookfield Asset Management, the mill's owner, on Tuesday said it would close the mill indefinitely because of the high cost of oil. Gonya believes, however, that the mill is still profitable and that Brookfield is shutting it because the company can make more money selling electricity from the mill's hydro generators on the open market.

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