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Sheri McWhirter
Sale of former G-P plant to become final
GAYLORD -- The sale of Georgia-Pacific's factory in Otsego County's Bagley Township is set to become final on the second anniversary of the day the plant closed and more than 200 workers lost their jobs.
The property sale is expected to close on Thursday, and is a major hurdle in a $46.5 million redevelopment plan for the particleboard plant left idle -- save for security guards -- during the last two years.
"It's all going to happen. The entire community will benefit with a number of jobs and hopefully, there will be more jobs created along the way," said Bill Giles, Bagley Township supervisor.
About 160 positions are estimated to be directly created by coming forest products companies. Spin-off jobs in logging, transportation and service shops are expected to increase across the region.
This week's expected property deal was confirmed by G-P officials.
"We are working toward the closing," said Julie Davis, G-P spokeswoman.
Davis did not reveal the company's asking price, but said the property remained on the market since the factory closed.
The factory and surrounding land carry an assessed value of more than $15 million and remaining equipment was appraised at $2 million.
Plans to revive the industrial site include three companies setting up a wood pellet production facility, a hardwoods sawmill and a forestry supply operation. The companies are Forest Resource Group, Gaylord Lumber Company and Woodland Harvesting, all owned by Alpena-based developer Roger Glawe.
Glawe could not be reached for comment this week, but previously told the Record-Eagle he wants to create a "timber center" at the Gaylord site and help fill a void in the regional forestry industry created when G-P closed.
The land sale comes fast on the heels of news that the state approved a $2.5 million Community Development Block Grant for the project. That will buy existing equipment in the factory, as well as pay for railroad and road improvements.
At least 160 employees must be on the companies' payrolls within two years of grant approval, according to a separate agreement with the township.
A tax-free renaissance zone also was created for the development, allowing the companies to avoid paying taxes for 15 years, except for bonded millages to the schools and library. Early estimates put the annual tax break around $778,000, township officials said.
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