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Maine towns grapple with economic futures after mill closures

Created at 9 Aug · 9:11 AM1 source↑ Market-relevant
IN SHORT

Two Maine towns, Lincoln and Jay, are navigating the economic fallout from paper mill closures. Lincoln is developing its former mill site into a technology park and planning for future business closures, while Jay faces uncertainty as developers may be backing out of a data center project on its former mill site.

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Key Numbers

1882year first paper mill built in Lincoln
2015year Lincoln Paper and Tissue filed for bankruptcy
$60 millionchemical cleanup cost for Lincoln mill site
400acres acquired by Lincoln around the mill
2023year first business leased space in Lincoln Technology Park
2027year largest battery system slated for construction in Lincoln
200jobs expected from Biofine Developments Northeast refinery
$147 milliongrant secured by Form Energy for battery system
$550 millionplanned investment for Jay data center project

Who's Involved

Lincoln Paper and Tissue
former owner of mill in Lincoln, Maine
Lincoln
Maine town redeveloping former mill site
Ruth Birtz
Lincoln's economic development administrator
Rick Bronson
Lincoln Town Manager
Biofine Developments Northeast
company leasing space for biorefinery in Lincoln
Form Energy
company receiving grant for battery system in Lincoln
Androscoggin Paper Mill
former mill site in Jay, Maine
Jay
Maine town facing setback in data center project
Sentinel
developer potentially backing out of Jay data center project
JGT2
owner of the Jay mill property
Janet Mills
Governor of Maine
Maine towns grapple with economic futures after mill closures

↳ Why This Matters

The economic transition of former industrial towns like Lincoln and Jay highlights the challenges of diversifying local economies after the closure of major employers. Their strategies, from proactive financial planning in Lincoln to the uncertainty in Jay, offer insights into how communities can adapt to changing economic landscapes and the potential risks associated with large-scale development

Key facts

  • Lincoln, Maine, is redeveloping its former paper mill site into a technology park, with plans for a biorefinery and the world's largest battery system.
  • Lincoln is implementing new policies requiring companies to establish funds for future closure and cleanup expenses.
  • Jay, Maine, is facing uncertainty as developers may withdraw from a $550 million plan to convert its former paper mill into a data center.
  • Governor Janet Mills supports a moratorium on data center projects while acknowledging disappointment over the setback in Jay.

Two towns in Maine are grappling with the economic consequences and future planning challenges following the closure of major paper mills. In Lincoln, the town is actively redeveloping its former mill site into a technology park, aiming to avoid past mistakes by implementing new financial safeguards for future business closures. The town acquired the mill and surrounding land after its closure in 2015 and has since worked to clean the site and attract new businesses. Lincoln is now requiring incoming companies to establish funds to cover potential future closure and cleanup expenses, a measure designed to prevent the town from bearing the financial burden again. The town has already secured leases for a biorefinery expected to create nearly 200 jobs and a grant for what is planned to be the world's largest battery system.

Meanwhile, the town of Jay is facing uncertainty as developers may be withdrawing from a significant $550 million plan to convert its former Androscoggin Paper Mill into a data center. This project had been a focal point of political debate, including a gubernatorial veto on a related moratorium bill. Governor Janet Mills expressed disappointment over the project's hold and supports a temporary moratorium on data center developments, though she advocated for an exemption for the Jay project. The owner of the Jay mill property is reportedly in discussions with other potential investors following the setback with the initial developer.

Frequently asked questions

The Lincoln Paper and Tissue mill closed in 2015 after a boiler explosion forced it into bankruptcy. The town acquired the site and is redeveloping it into the Lincoln Technology Park.

Lincoln is requiring companies developing on the former mill site to create funds that will pay for expenses from future closures and potential cleanups, giving the town more control.

The $550 million plan to convert the Androscoggin Paper Mill in Jay into a data center has encountered a setback, with developers potentially backing out of the project.

Governor Mills supports a temporary moratorium on data center projects but would have signed a bill exempting the Jay project. She is confident her newly created Maine Data Center Advisory Council will help balance benefits and risks.

What Happens Next

01The owner of the Jay mill property will continue discussions with other interested parties.
02Form Energy's grant for the battery system in Lincoln is in the final stages of being awarded.
03The biorefinery in Lincoln is set to start construction this year.

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Cadence

How It Developed

Lincoln Paper and Tissue mill closed in 2015 after a boiler explosion, leading to bankruptcy.
Lincoln acquired the mill site and surrounding land, razing buildings to create the Lincoln Technology Park.
Lincoln is planning for future business closures by requiring companies to create funds for rehabilitation expenses.
Biofine Developments Northeast signed a 20-year lease to construct a biorefinery at the Lincoln mill site, expected to bring nearly 200 jobs.
Form Energy secured a $147 million grant to build the world's largest battery system on the former Lincoln mill site.
A $550 million plan to convert the Androscoggin Paper Mill in Jay into a data center has faced a setback as developers may be backing out.
Jay's town manager stated that Sentinel has notified the local developer of their intent not to move forward with the data center project.
Governor Janet Mills expressed disappointment that the Jay data center project is on hold and supports a temporary moratorium on data center projects, with an exemption for Jay.

Sources

T1
A Maine Town, Once Dependent on a Paper Mill, Tries to Move OnThe New York Times
T2
A former Maine mill town is planning for its future with an eye on past ...emdc.org
T2
Jay town officials say developers may be backing out of plans for ...wgme.com

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