City/Celgar reach accord
By Kyra Hoggan
The City of Castlegar got a stunning early Christmas present last night when they received the first real break in negotiations with the city’s primary rate payer, Celgar.
The pulp mill has been in discussions with the city since July of this year, when Celgar declined to pay it’s $3.6-million municipal tax bill and filed suit against the city in the BC Supreme Court instead, but it seemed little headway had been made … until last night.
“Zellstoff Celgar paid the City of Castlegar $469,960 yesterday to clear the outstanding portion of their 2009 external tax requisitions,” Mayor Lawrence Chernoff told The Source, explaining the paymnet figure represents the amount owed other juristdictions like the school board and the health region, which the city was forced to pay in Celgar’s stead.
“There is a further $2,734,639 that remains outstanding to the City of Castlegar for 2009 taxes and penalties.”
He said this agreement represents one small step in getting the original bill paid, and one giant leap in city optimism that a resolution to the situation is in the offing.
“In addition, Celgar has agreed to make monthly payments against the outstanding balance provided the City and Celgar continue in constructive discussions,” he said, adding the city’s 2010 budget process and five-year plan will reflect the city’s efforts to address Celgar’s concerns and help ensure the longterm viability of the mill.
“That’s a huge shift for us,” he said. “We’ve come a long way to get here … and we have a long way to go yet.”
He said they haven’t yet hammered out concrete numbers in terms of city tax breaks or Celgar’s monthly payments, but this show of good faith gives him much hope that the details can, indeed, be worked out between the two parties.
Celgar officials were not available for comment in time for this publication, but The Source will post updates as soon as they become available.
There is no word yet as to how this may impact pending court proceedings between the city and Celgar.
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