Meriwether Timber approaches Encampment Town Council about lumber mill lease
While discussion of the Green Mountain zone change dominated the conversation at the July 8 Encampment Town Council meeting, it didn’t completely hog the spotlight.
During the meeting, Saratoga resident Lela Konecny spoke to the council regarding a lease on the lumber mill at Grand Encampment Business Park. Konecny gave a presentation as a representative of Meriwether Timber.
The lease on the mill is currently owned by TNT Forest Products. TNT currently has no business license, having been administratively dissolved in December 2019 for tax reasons. The lease for TNT was renewed in September 2020, contingent on “the tenant providing a letter updating the council on their opening date, future plans and how many employees they intend to have before the end of the month”. There was no evidence of a letter being sent to the council within the October meeting minutes.
Minutes from the December 2018 meeting show the Town of Encampment used a loan from the Economic Development Loan Fund in the amount of $106,875 for electrical repairs on the mill.
Konecny began her presentation by listing her credentials in the logging industry. She stated she has been in the industry for 25 years. “Meriwether sought me out in regards to the opportunity here in Encampment with the sawmill”.
A business license for Meriwether Capital Timber, LLC was filed in June 2021.
It was then noted the current tenant has been in the position for “quite some time”, with no production at the mill taking place.
“It’s not producing any jobs,” Konecny explained.
She added the mill would be able to be running in a short amount of time and discussed the economic development it could bring to the town.
Meriwether was stated to be open to a public-private partnership with the town. Konecny asked to meet with the Town to discuss the lease on the mill and a partnership with Meriwether.
The council did not engage in any discussion on the matter. Konecny asked if the council was going to take any action.
“We can’t take action because we are in a lease right now,” stated Councilmember Shannon Fagan Craig.
Konecny pointed out the lease was due to renew in September. She further asked to delay renewing the current lease until they could have a conversation.
Councilmember Stas Banach asked for Konecny to come back with a more specific proposal. He stated he was concerned if they were asked to invest in the property. Konecny stated they would not be asking for any money from the Town. Meriwether would be open to negotiating giving a portion of the profits to the Town.
“I’m asking for time to discuss this,” Konecny explained. She asked the council to give her a time to sit down and discuss the lease.
“If you have a written proposal that we can review, that’s going to create jobs and revenue - that’s payment in itself. To offer any kind of incentive beyond that, that puts up a red flag in my eye,” stated Banach. “As the Town’s representative, I would approach it like that”.
The council stated Konecny should return to the next meeting to discuss the proposal. The next Encampment Town Council meeting will be on August 12 at 7 p.m. in the Encampment Town Hall.
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