FORT FRANCES, Ont. — The acrimonious relationship between the Town of Fort Frances and Riversedge Developments has taken a turn for the better.
In exchange for an agreement on how to deal with property taxes for the former Resolute pulp and paper mill, Riversedge is willing to allow potential buyers to tour the mill to assess its condition.
The municipality and the company issued a joint statement on Oct. 4 saying they had signed an agreement that settles the 2019 taxes and assures that any future taxes will be negotiated "in good faith."
Last month, the town tried to serve notice that it was seizing heavy equipment on the mill property because Riversedge owed more than $400,000 in unpaid taxes.
Company owner Justus Veldman described the dispute as a misunderstanding over the tax due date.
Friday's statement said that in exchange for resolving the tax issue, Riversedge has agreed to allow "any potential qualified buyer" to inspect the mill properties, buildings and machinery, and to receive pertinent environmental information for a period of 90 days.
"Working collaboratively with the town, the owner will work quickly and efficiently to qualify such a potential operator," the statement said.
During the 90-day period, Riversedge will continue its own business planning for the mill site, and will share with the town any pertinent information regarding its operations.
In August, the company announced that it was looking to establish a cannabis production facility on the property, and was working with "world-renowned" cannabis production partners.
Veldman has publicly questioned the feasibility of resuming paper production, saying much of the equipment, including the paper machine, is rust-damaged or seized beyond repair, and would require "hundreds of millions" of dollars to replace.
Fort Frances Mayor June Caul disputed his contention, saying "We had people go through who know what they're looking at, and they weren't too concerned" about the condition of the paper machine.
