CHAPTER 8

S.P. 535 - L.D. 1575

An Act To Assist Brascan, the Successor to Great Northern

Paper, in Paying the Property Taxes Due to the Towns of

Millinocket and East Millinocket

Emergency preamble. Whereas, Acts of the Legislature do not become effective until 90 days after adjournment unless enacted as emergencies; and

Whereas, Great Northern Paper, Inc., the owner of 2 large paper mills in the towns of Millinocket and East Millinocket, is currently in bankruptcy; and

Whereas, the bankruptcy of Great Northern Paper, Inc., is causing substantial economic hardship to the towns of Millinocket and East Millinocket, to the employees and suppliers of Great Northern Paper, Inc., and to the economy of the region; and

Whereas, part of the economic hardship occasioned by the insolvency of Great Northern Paper, Inc., is that $7.8 million of property taxes due to the towns of Millinocket and East Millinocket for the 2002-03 property tax year have not been paid, and the assets of the bankrupt estate will not be sufficient to pay the taxes; and

Whereas, Brascan Corporation, or its designee, has agreed to purchase the mills and has also offered to alleviate the hardship by paying the property taxes, and these payments will be made, in part, by applying loan proceeds secured by Business Equipment Tax Reimbursement program payments related to the mills; and