Bill Hopes to Create More General Criteria for Purchase of Paper Mill
A bill was introduced by Duluth State Representative Liz Olson this week that created more general criteria for those who would be eligible for the purchase of Verso's paper mill.
DULUTH, Minn. – A bill was introduced by Duluth State Representative Liz Olson this week that created more general criteria for those who would be eligible for the purchase of Verso’s paper mill.
The bill itself did not name a specific buyer and left it fairly open so that multiple buyers of the Duluth mill would be eligible.
The bill would provide $3 million for a loan for the conversion of the existing mill for the manufacture of new paper grades. In order to be eligible for this loan, the company that owns the mill must invest $25 million by May 21st, 2023. The bill states that loan funds may be used for materials, supplies, and equipment.
Additionally, at least 80 full-time employees must be retained for five years. City officials say that this impacts a larger chain of local businesses, including the timber industry and utilities like Minnesota Power.
“We really think it’s an important employer within the city to have that manufacturing base and it does support other businesses around the Duluth area so we do believe it’s really important, it’s vital,” said Chris Fleege, the director of planning and economic development for the City of Duluth.
The paper mill was a major employer in the area and idled in the summer after getting hit hard by COVID. About 250 employees had worked there.
Representative Liz Olson says that it’s important to invest in the mill to help spur on the local economy with jobs paying up to $60,000 a year.
“So obviously, we want to retain and keep jobs in Duluth,” said Rep. Liz Olson. “That’s really important and get the mill up and running. It has a ripple impact across the community, not just for those employed at the mill but with all of what the mill touches.”
The Wisconsin-based group ST Paper has made comments about the legislation proposed by Representative Olson and could be a series of potential buyers for the mill. WE reached out to that company for comment but have not heard back.
