FQ Tissue Expansion Gets Two Tax Abatements

FARWELL – Thursday was a good day for Clinton County officials and their effort to convince First Quality Tissue to locate its newest paper machine at its existing site in Castanea Township.

Mike Flanagan, head of the Clinton County Economic Partnership, went two-for-two Thursday, getting approval from both the Clinton County Commissioners and the Keystone Central School Board to okay First Quality’s participation in LERTA, a real estate tax abatement program used as an incentive to further commercial/industrial growth.

The Flanagan appearance at the commissioners’ meeting in Lock Haven and the school board meeting later in the day at Farwell were part of “due diligence,” the legwork to attract a third First Quality tissue machine at its existing site in Castanea Township.

The commissioners approved the LERTA designation in a 3-0 vote and the school board followed suit, voting 8-0 with board member Albert Jones, a First Quality employee, abstaining.

Flanagan told the school board the Castanea/Lock Haven site is one of the finalists for the new machine which he said would mean 184 new jobs, in addition to the 453 already working at the former International Paper site. He said the First Quality total investment would be more than $300 million.

The LERTA program runs for 10 years, Flanagan said, with a gradual increase in real estate taxes each year. The LERTA program has been used for the two existing tissue machines at the site, one almost complete, the other three years away from the full complement of real estate taxes.

Flanagan said the Castanea Township supervisors are expected to act on the LERTA request at their meeting Monday.