The town of Terrace Bay and AV Birla have reached an agreement on the assessed value of the local mill.
Terrace Bay council voted on a deal Friday that will result in hundreds of thousands of dollars in lost revenue. But officials say it was the safest way to move forward and keep the town financially stable.
The mill's assessed value for 2013 was $23 million. AV Birla filed an appeal with the assessment review board in an attempt to have the mill valued at just $2 million.
But the two sides were willing to negotiate and have settled on a value of $15.4 million. The deal will cost the town $530,000 in annual tax revenue.
Terrace Bay will also have to repay AV Birla $600,000.
Council will ask the province for financial assistance. A draft plan on how to handle the lost revenue will be presented at an upcoming public meeting.
Former Mayor Mike King stepped down late last year in opposition to the negotiations.
He wanted to fight the reassessment.
(Thunder Bay Television)