Fort Frances may have to pay mill $2M, mayor shocked

The mayor of Fort Frances says he is shocked to learn the town may have to pay AbitibiBowater more than $2 million.

Mayor Roy Avis says if a property assessment review of the AbitibiBowater Fort Frances site is successful, the town will be required to make a retro-active payments to the company of about $2.2 million.

The appeal covers the period from 2009 to 2011, and would decrease the property's value from $28 million to$15 million.

Avis said being forced to make the payment "is like trying to plug a hole in a dyke after the water's already leaked, because that money is already spent.''

The reduction would also cut annual tax revenues by $800,000.

That would translate into an 8.5 per cent residential tax hike.

Avis said the municipality will immediately start looking for ways to reduce costs.

No date has been set for the appeal hearing.