Terrace Bay mayor resigns over likely assessment reduction at town mill

Terrace Bay Mayor Mike King has resigned.

According to a letter issued by the North Shore community’s town council, King stepped aside due to “irreconcilable differences” surrounding the decision by AV Terrace Bay Inc. to file for a 2013 Municipal Property Assessment Corporation reassessment of its taxable value.

The mill, the centrepiece of Terrace Bay’s economy, is the community’s largest taxpayer.

The letter states council is well aware its revenue stream will likely be drastically cut. They point to the reassessment of Domtar’s mills in Dryden and Espanola and the change in MPAC’s methodology for calculating assets.

“We certainly have to be realists as there is no doubt that the outcome of the negotiations for the 2013 year and MPAC’s reassessment beginning in 2014, will result in a significant loss in tax revenue in our community,” says the Oct. 30 letter, signed by Councillors Jody Davis, Gino LeBlanc, Jamie Robinson and Rick St. Louis.

“The decisions being made by the Assessment Review Board are consistent decreases in excess of 65 per cent in favour of the pulp and paper mills in Ontario.”

The councillors went on to say they are preparing the 2014 Terrace Bay budget accordingly and reviewing operations with an eye to minimize the impact on services for community residents. The status quo is not acceptable, they said.

“Changes have to be made that will affect all of us,” they said, promising to deliver their ideas to the community through open public forums and mail outs.

“We hope you will participate and provide us with your feedback.”