Committee turns down request
Posted By STEPHEN UHLER SUHLER@THEDAILYOBSERVER.CA
Posted 3 months ago
-Laurentian Valley's finance and administration committee is not in favour of giving ATC Panels' tax relief, even on the interest payments.
On Monday, committee members heard from township CAO John Baird that as of October 2009, the municipality's fibreboard plant owed them $648,000 in taxes, which includes $33,000 in penalties and interest alone.
The CAO said the company has asked the township to waive those penalties and the interest, so it can work towards reopening the plant. Currently, ATC Panels is in receivership, having declared bankruptcy for the property in July.
None of the committee members were enthusiastic of the plan, which would take revenue away from the ratepayers, and may not help the plant get underway anytime soon.
Mayor Jack Wilson said he is really concerned if the municipality grants this, council will be opening the door to others who will be asking for the same treatment.
"If we do waive it we'll be asking for a real problem," he said.
The mayor added he doubts waiving these penalties will help the plant get back on its feet alone, as it is his understanding based on meetings he's attended ATC needs to have both Ontario Hydro reduce its rates and the provincial government slash its taxes before it can afford to restart operations.
Coun. George Hodgkinson said he couldn't support tax relief to ATC when so many residents are hurting. He said some ratepayers have been paying their taxes using credit cards in the hope things will improve, as they can't afford to pay them right away.
Coun. Steve Bennett said he can understand where the company is coming from, but he also couldn't back this idea. He said if there was more of an indication the township would get its money back at some future date, he might consider it, but it doesn't appear likely.
Mayor Wilson said if ATC wants to sit down and talk with the committee or council, the door is always open.
Mr. Baird said the township will have to wait another year and a half, as per regulations, before it can put this property up for a tax sale to try and recoup some of the money it is owed.
Stephen Uhler is a Daily Observer reporter
