-13 C
Prince Albert
Saturday, December 2, 2023
Home News City approves $5.1 million settlement with Domtar Inc.

City approves $5.1 million settlement with Domtar Inc.

City approves $5.1 million settlement with Domtar Inc.
Ward 4 Coun. Don Cody speaks during a Prince Albert City Council Meeting. -- Herald file photo.

After several years of negotiation, the legal battle between the City of Prince Albert and Domtar Pulp and Paper Products Inc. is coming to an end.

On Monday, city councillors voted overwhelmingly to approve a settlement that will see Domtar receive $5.1 million, $2.85 milllion of which will be paid by the City of Prince Albert. The Saskatchewan Rivers Public School Division and Prince Albert Catholic School Division will cover the rest of the settlement, with payments of $1.58 million and $678,403 respectively. Both school boards have approved the settlement.

The move proved to be an unpopular one with city councillors, who grudgingly approved the deal.

“This is just unforgiveable,” said Ward 4 Coun. Don Cody, who was the most vocal councillor on Monday night. “It really is unforgivable that this city should give $2.81 million to people who had a free ride … of $60-70 million dollars over the time of that tax agreement that the people of Prince Albert handed them.”

The disagreement stems from an outstanding assessment appeal case over the valuation of the pulp mill site purchased by Domtar in 2006.

For the rest of this story, please see the March 29 online or print edition of the Daily Herald.