Optimism Fades on Getting New Tenant for Closing Erie, Pa., Paper Mill.

Byline: Peter Panepento

Oct. 25--As Erie officials begin their effort to find a new industrial tenant for International Paper Co.'s pulp and paper mill on East Lake Road, they are finding that their toughest foe could be the paper company itself.

While bringing a new owner to the 213-acre site would require navigating a maze of environmental and governmental regulations, the biggest concern is that IP may be unwilling to part with its soon-to-be-fallow lakefront property.

International Paper announced last week that it plans to close its Erie paper and pulp plant -- ending 103 years of paper production at its 213-acre lakefront plant and leaving 760 employees looking for …