ERVING — With higher demolition estimates than initially anticipated for the International Paper Mill, the town will return to the Capital Planning and Finance committees to evaluate next steps.

Three of the four new estimates surged beyond the initial $1.8 million price tag presented in late January, with a total demolition of all structures on the site topping $4 million, according to Town Planner Mariah Kurtz, who presented the revised demolition estimates at Monday’s Selectboard meeting.

“Unfortunately, the costs were much higher than I hoped,” Kurtz told the board. “That was a surprise to me.”

Four demolition concepts of varying levels were presented: Concept 1 would demolish a handful of buildings for $1.1 million; Concept 2 would tear down the buildings mentioned in the first proposal, followed by a second round of demolition that would preserve only buildings 2 and 8, for a price of $2.07 million; Concept 3 would demolish all buildings except for 2 and 8, and would include repairs to Building 2 for $3.2 million; and Concept 4 would tear down every structure on the site for just over $4 million.

The town has a $600,000 Site Readiness grant from MassDevelopment and would have to fund the rest of the demolition itself. Selectboard Chairman Jacob Smith said the grant “doesn’t seem so big” when considering a $4 million cost.

Speaking by phone Tuesday, Kurtz said the original $1.8 million figure was a placeholder derived from previous demolition studies and also wasn’t for a full demolition. She noted a 2017 study had determined a full demolition would cost $1.1 million.

“The numbers have gone up significantly. … We had hoped that might be closer to the $2 million range,” she said. “I think a lot of that is just labor and material costs for everything.”

Kurtz said the town has questions for engineering consulting firm Tighe & Bond regarding potential engineering costs and water management solutions for a structure that may be preserved on the site. The cost could also change depending on the bidding process because potential salvage opportunities for contractors can “cause some swings,” she added.

While the estimated demolition costs have gone up, the Selectboard signaled that demolition remains the town’s best option for getting the property at 8 Papermill Road back on the tax rolls.

“I presume the general feeling is that we don’t want to retain that property,” Smith said. “We do this with the hope of something going in there and paying taxes.”

The property, valued at nearly $1.49 million between the land and buildings, has sat vacant for two decades. After a century that saw eight buildings built from 1902 to 2000, International Paper “suddenly shuttered the mill” before selling it “to a private developer who left the complex vacant and delinquent on property taxes,” Kurtz said previously.

Fellow board member William Bembury echoed Smith’s sentiment about turning the property into a viable revenue source. Although he signaled his support for borrowing money to fund the project, Smith and Town Administrator Bryan Smith disagreed.

“The property continues to be a liability and it has to come down,” Bembury said. “The sooner we take it down, the sooner and quicker we can turn that property into revenue and tax base.”

Selectboard member Scott Bastarache calculated an estimated interest cost, set at a 7% rate, of at least $30,000 per month for 20 years if the town were to borrow money for the $4 million demolition project.

The town took control of the property in 2014 and conducted feasibility studies and evaluations regarding the property’s future before eventually issuing a formal request for interest in fall 2021. A request for proposals was then released in March 2022, but closed without success.

Outlining the next steps for the process, Kurtz said she will be returning to the Capital Planning and Finance committees, as well as the Selectboard, with different demolition and funding scenarios. Additionally, she said town officials will probably schedule a community engagement session in the coming month to solicit resident feedback.

Chris Larabee can be reached at clarabee@recorder.com or 413-930-4081.

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