Wausau Paper, the Wisconsin-based company that signed an agreement to buy Missota Paper Co., will seek business subsidies from the city of Brainerd.
The Brainerd City Council Monday, on behalf of the city and the Brainerd Economic Development Authority, set a public hearing for its Oct. 18 meeting for a request from Wausau Paper to receive tax benefits through the JOBZ program.
The public hearing also would cover Wausau's request to assume Missota's Minnesota Investment Fund loan with the EDA.
While the amount of business subsidy Wausau Paper requested wasn't included in the resolution to set a public hearing, the resolution document the council reviewed noted the subsidies are anticipated to be "substantially more than $100,000."
"One contingency of the purchase agreement is that financial programs be available," said Sheila Haverkamp, Brainerd Lakes Area Development Corp. executive director. Haverkamp is working with the city and Wausau to develop the documents.
The purchase agreement of $9.6 million between Wausau Paper and Missota was finalized late Friday afternoon and the closing period will take about three weeks. The northeast Brainerd paper mill will become part of Wausau Paper's printing and writing business segment.
"How exciting for our community," Haverkamp said.
Haverkamp noted the city also would need to amend its JOBZ zone ordinance to include the paper mill itself. The council passed a motion to seek approval from the Crow Wing County Board and the Brainerd School Board to modify its JOBZ zone to include the paper mill.
Council member Mary Koep said she had no problem setting the public hearing but requested more financial information be made available to the council before the public hearing and before the council makes its final decision. Haverkamp said the information to be presented at the public hearing should be available at city hall later this week.
MATT ERICKSON can be reached at email@example.com or 855-5857.
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