GO Lab Inc. of Belfast plans to convert the former Madison Paper Industries mill in Madison to manufacture three types of wood fiber insulation that has been sold in Europe for two decades. Company and town officials are working to finalize documents that will allow the project to continue moving forward. The project would be the first of its kind in North America. Morning Sentinel file photo

MADISON — A Belfast-based company is finalizing its financial package and preparing for equipment to arrive at the former Madison mill to launch a manufacturing operation unique to North America.

GO Lab Inc. earlier secured an $85 million bond and Town Manager Tim Curtis told the Select Board on Monday that “they hope to have their financials in place by the first week of December.”

The company is a building products manufacturer and closed on the former Madison Paper Industries mill in 2019 in a $1.9 million deal.

When it’s up and running, GO Lab plans to make three types of wood fiber insulation that have been on the market in Europe for more than 20 years. It will be the first manufacturing operation of its kind in North America.

GO Lab has contracted with Pittsfield-based Cianbro Corp. to complete site work necessary to install equipment that was shipped to Maine from Germany earlier this year. Officials from the company did not respond to an email inquiry Tuesday.

GO Lab requested that town officials sign off this week on several financial documents, including ones needed to lease a boiler and HVAC system.

The boiler was purchased by the town using federal money and will be installed by Cianbro. The town is required to retain ownership until the value of the boiler depreciates to less than $5,000. The lease is for seven years, during which GO Lab will pay $70,000 to the town to cover insurance costs.

The lease agreement is similar for the HVAC and air compression systems, which will be installed at the site this winter. The town received $1 million in federal funds and similar stipulations apply, though this lease is for 10 years and the town will receive $208,000 in compensation.

Madison Paper Industries closed in May 2016. The loss of the mill was a blow to the town’s tax base, with the Maine Supreme Judicial Court siding with the town in July over the valuation of the former mill.

When GO Lab is at full production in Madison, the mill will employ around 120 people. The cost of the project is expected to be $110 million, with funding sources that include Maine Technology Institute, Coastal Enterprises and the Finance Authority of Maine. The company also raised money for the project through private investors.