Powell River City Council has approved a new Agreement in Principle (AIP) with Catalyst Paper Corporation. The AIP continues with the Cityís objective to secure the future economic and social health of the City and the revitalization tax exemption program in relation to Class 4 Major Industrial land and improvements. The AIP reflects Catalystís commitment to assist the City in meeting its objectives. Generally, the AIP provides for the following:
The City will administer its revitalization tax exemption program so that property taxes payable to the City by Catalyst for its real property classified as Class 4 Major Industrial will not exceed $2,250,000 for calendar years 2012 through 2014, subject to Catalyst applying for the exemption in accordance with Revitalization Tax Exemption Program Bylaw 2304, 2011.
Catalyst will grant to the City of Powell River a 30-year licence of occupation and related agreements to use portions of Catalyst lands and foreshore area for barge facility operations.
Catalyst Paper Corporation, City Transfer and City of Powell River have executed a Term Sheet to provide for the transfer and subdivision of certain Catalyst lands to the City of Powell River for the barge facility operations. Under the Term Sheet, City Transfer will transfer ownership of the existing barge ramp to the City of Powell River in exchange for fair market value of the land, currently owned by Catalyst and leased to City Transfer, plus $160,000. The $160,000 represents extraordinary costs associated with the expedited construction of a temporary barge terminal facility and are funded from the Cityís Barge Reserve Account established through divestiture of the barge and tanker wharf from the federal government.
Once the subdivision of land currently in use as a barge facility is approved, Catalyst will transfer the barge facility land to the City for the consideration of $10.00. The City will lease this land to City Transfer to operate the barge facility.
Catalyst has agreed to accept $3,000,000 in full satisfaction of the mortgage it holds on the PRSC properties andto transfer its stake in the PRSC Limited Partnership to the City and Sliammon First Nation for a nominal amount. The unique three-way partnership was formed in 2006 to subdivide, sell and redevelop 800 acres of the companyís surplus property in support of the regionís economic future and official community plan. The City and Sliammon will each own a 50% interest in the PRSC lands mortgage-free. The Cityís $1.5 million would be borrowed from the sewer capital reserve.
Catalyst and the City will continue to seek out economic development opportunities and initiatives where community benefits can be optimized through combined municipal and industrial resources.
To view the Agreement in Principle (AIP) click here.
For further information:
Stan Westby, Chief Administrative Officer
Lyn Brown, Vice-President, Marketing & Corporate Responsibility