JAY – Selectmen will receive an update on a tax-break proposal Monday for International Paper and its plan to rebuild a paper machine.

Selectmen will also consider an offer of 26 acres off Elm Street to the town for $35,000, discuss extending the sewer line and adding a sewer hookup and decide what action to take on a tax-acquired property.

Town Manager Ruth Marden said she hoped to have a tax-increment financing agreement finalized to present to selectmen for consideration at 6:30 p.m. Monday at the Community Center.

If the board approves the agreement, a timeline would be set for a public hearing prior to it going before townspeople for a vote.

Last month, selectmen discussed a tentative tax-increment financing agreement that would allow IP to keep 60 percent of the taxes on a $90 million to $100 million rebuild of its No. 3 paper machine and the upgrade of the company’s wood process. The town would keep 40 percent of the taxes on the TIF district, if voters approved the deal.

Under that proposal, if IP invests $100 million in the TIF district, it would receive a tax bill of $1.58 million, using the current tax rate of $15.80 per $1,000 of valuation. IP would pay the taxes, and after a certain period of time – usually 15 days, $948,000, or 60 percent of the taxes, would be returned to IP and the town would keep $632,000, or 40 percent.

The board also included provisions to protect the town from any other tax losses in case other paper machines went down during the longevity of the agreement. The company would also be responsible for annual administrative fees that gradually increase during a 20-year TIF agreement.

dperry@sunjournal.com