MILLINOCKET, Maine — It won’t be paid, but a Bangor rental company is the first to drop a lien filed against an industrial park owner who owes the town $2.3 million in delinquent property taxes, officials said Friday.
NES Rentals of Bangor dropped its $16,461 lien against GNP West filed last year. The discharge of the mechanic’s lien NES filed was logged by the Penobscot County Registry of Deeds Friday, according to penobscotdeeds.com.
NES dropped the claim because officials at Cate Street Capital said they wouldn’t do business with any of the lienholders, said Kevin Jarvis, a branch manager at NES. Cate Street is a New Hampshire investment firm bankrolling Great Northern Paper Co. LLC, which owns a temporarily closed paper mill in East Millinocket and the Katahdin Avenue industrial park, where a $140 million pellet mill is proposed.
“My feeling isn’t that we will be doing business with Cate Street, but we will be doing business with a company that will be doing business with them. We have companies contacting us to do work up there. We have good relations with those companies, and we want to keep them,” Jarvis said Friday.
“We just hope that we have made the right business decision so that we can continue to do business in the Katahdin region,” Jarvis added. “We hope to work with anyone who would be taking equipment out of there or building” in the industrial park.
Elizabeth Baldacci, Cate Street’s spokeswoman for its Maine affairs, declined to comment Friday.
GNP has run up a $6.8 million tab with nearly a dozen vendors, East Millinocket, Millinocket and the Internal Revenue Service since mid-2013, according to liens and attachments filed at the Penobscot County Registry of Deeds.
Millinocket town leaders said they plan to file a lien for the $2.3 million. Town Manager Peggy Daigle will report on that effort for the town council at its special meeting Tuesday, she said Friday.
NES filed the lien after a Massachusetts company that worked on the Katahdin Avenue site went bankrupt, Jarvis said. The company rented an 80-foot boom lift from NES to clear buildings and equipment from the park.
Cate Street made news Tuesday, when an auctioneer posted an advertisement on several websites listing the No. 11 paper machine and other Millinocket paper mill equipment as up for auction next month. For about one and a half years, workers had been razing buildings and disassembling the mill site, once home to 17 paper machines.
The removal of No. 11 and other machinery is expected to effectively deprive Millinocket $2.3 million of about $6.5 million in net local revenues within the 2015-16 budgets, Daigle said.
Town and school leaders will meet with their employees May 27, to discuss the impact of that funding loss.
The NES Rentals office in Bangor has about 250 pieces of industrial equipment available for rent. It is among 80 stores east of the Mississippi River, Jarvis said.