MILLINOCKET, Maine (NEWS CENTER) --- A project that could bring much needed jobs back to the town of Millinocket has now hit a road block.
Its been nearly two years since Cate Street Capital announced new plans for the paper mill in Millinocket. The company wants to take the closed mill and turn it into a wood pellet processing plant. Officials with Cate Street say if built the plant could employ up to 25 people.
To support the project the company says it needs a $25 million loan from the Finance Authority of Maine, which is also known as FAME. On Monday that group's board of directors held back on granting the loan saying they need to see more information from Cate Street. This came after staff at FAME reviewed the company's loan application for months and recommended denying the project.
"The staff's recommendation took into account all of the factors combined...to suggest to the board...whether we felt there was a strong likelihood to be able to repay the loan," said Elizabeth Bordowitz, who is the CEO of FAME.
A spokesperson for Cate Street says the company will continue efforts to get the loan. Company officials will be meeting with directors of FAME again on October 17, 2013 in Augusta.