Ashland receives $99,999 grant on behalf of mill
Staff Writer
ASHLAND — A local mill is that much closer to reopening, thanks to the recent announcement the town would be receiving a grant for approximately $100,000 that will be used toward new equipment for Northeast Pellets LLC.
Northeast Pellets LLC’s Ashland mill is nearing completion, with a tentative opening date set for sometime in June. The mill was destroyed by fire in March 2009. Since then, owner Matt Bell has been working with town officials to obtain funding to reopen the facility. Pictured, from left: Town Manager Jim Gardner and Matt Bell, owner, met recently to discuss plans for a $99,999 grant from the USDA’s Rural Development Program.
“The mill is nearly 90 percent complete. Pretty much all that’s needed now is some plumbing, lighting, fixtures and furniture,” said Matt Bell, owner. “This money will be used to purchase equipment.”
Bell did not specify exactly what equipment would be bought with the funds.
Sens. Olympia Snowe and Susan Collins announced Ashland would be receiving the grant on behalf of the mill earlier this month. The funds will be used to assist in the acquisition of equipment to help restart the mill. Town officials had pledged to seek state and federal assistance to help rebuild the facility, following last year’s fire. The town will use the grant to purchase equipment and lease it to the company, helping save about 22 jobs in Aroostook County.
“This funding will help save much-needed jobs in Aroostook County, which has been hard-hit by the recession,” said Sens. Collins and Snowe in a joint statement. “We are pleased the USDA Rural Development recognizes the importance of supporting economy opportunities in Maine’s rural communities.”
A fire in March 2009 destroyed the mill — one large structure that housed the entire operation. When Bell decided to reconstruct the facility, plans were made to separate the various aspects of the mill.
“Production begins in the raw material storage unit, goes to the hammer mill room, then to the storage bin crews have been working on recently. From there, it’s on to processing and the building where the pellet press is housed, and then to the cooler/shaker. The silo was set up about two weeks ago,” said Bell.
The silo, according to Bell, will allow the product to be loaded into trucks for bulk delivery, primarily for commercial users.
“We also have a bagging building, an office and storage for the finished product,” he said.
In all, the facility will consist of eight structures.
“We’re shooting for a June opening. This latest grant, in addition to the $400,000 in CDBG funding the town’s helping obtain, will go a long way to help get the mill back online,” Bell said.
Town Manager Jim Gardner said the actual grant is for $99,999 and would be available, once Bell determines what equipment will be purchased with the funding. The money is made possible through the U.S. Department of Agriculture’s Rural Business Enterprise Grant Program.
“Once the equipment is determined, we just need to make sure all the invoices are together — it’s a fast-moving process,” said Gardner.
Gardner stressed the importance of getting the mill up and running as quickly as possible.
“We want to be able to get this year’s product out and in the field. That’s part of the process of going forward with the grants. This is just one piece of the puzzle,” said Gardner.
The town manager said this is the type of economic boost the community needs.
“The quicker we can get Matt’s mill operational, the quicker we can put people back to work. This means jobs. Our (town officials) focus is with Matt right now,” said Gardner.
Gardner explained the $99,999 will allow Bell to lease equipment, going through the town’s PILOT (payment in lieu of taxes) program.
“The taxes/lease money was money the town wasn’t going to get but will now. It’s a win/win situation,” he said.
Bell said the majority of his staff plan to come back, once the mill reopens.
“A few relocated or found work elsewhere, but the majority are coming back,” Bell said.
That factors into the town and mill qualifying for the CDBG grant.
“Receiving that money is contingent on job creation and retention. That means up to $400,000 if we can prove that’s the case,” said Gardner.
Bell said he’s looking forward to June.
“It’ll be great to have the mill running again. It’s been a long, and sometimes difficult, process — one made easier by the support of family, friends, staff and the community,” said Bell.
PAINTING and other finishing touches are being done at Northeast Pellets LLC’s Ashland mill, with the facility scheduled to open in June.
A PELLET SILO was recently put in place at Northeast Pellets LLC. The rebuilding of the Ashland mill is nearly complete. Eight structures now stand where the original building — destroyed by fire in March 2009 — once stood.
