MANISTIQUE - The Manistique City Council has accepted a payment plan by Manistique Papers Inc. to pay back taxes owed to Schoolcraft County and the city. The 24-month payment plan was approved during a recent city council meeting.
Manistique's Downtown Development Authority met earlier this week in a special session to review the proposal presented by Manistique Papers General Manager Jon Johnson.
"The bankrupt mill owes $228,773.70 to the county and $385,496.40 to the city in taxes due in 2011, which they cannot pay," DDA Chairman Rick Demers said.
The DDA board recommended the city accept the payment plan.
Under the plan, MPI will pay $23,000 per month to the county and $5,000 per month to the city from May through January. Then in February, it will pay $21,773.70 to the county and $6,000 to the city per month. From March 2013 to April 2014, MPI will pay $23,892.60 per month to the city.
"We want the paper mill to know that the city appreciates their presence and we want them to remain a presence in the city," said City Manager Sheila Aldrich. "We just want to make sure the paper mill is still operating in Manistique and that we don't lose the mill and the jobs that go with it."