MILLINOCKET, Maine (AP)   Officials with a North Carolina group say a federal tax lien is preventing them from building a $30 million factory on the site of a former paper mill in Maine.

The Bangor Daily News reports an official behind the project’s financing says the tax lien is preventing significant improvement to the former site of Great Northern Paper’s mill in Millinocket.

LignaTerra Global LLC previously announced plans to open a facility at the site that would manufacture cross-laminated timber and create more than 100 jobs.

The owners of the site, Our Katahdin, are responsible for the lien. Group President Sean DeWitt said Tuesday the IRS has rejected two compromise offers and they are appealing the decision.

LignaTerra has not ruled out building a facility once the lien is resolved.