City remaining silent on Domtar deal for now

The City of Prince Albert will remain silent on the details on a possible mutli-million dollar settlement with Domtar Pulp and Paper Products Inc. until later in this month.

Kiley Bear, the city’s communications manager, told paNOW in an email on Tuesday the city won’t comment on the issue until the March 27 city council meeting. She wrote a public report will be presented at that time as well as an official comment from the city following the meeting.

Last week, paNOW wrote a story that the city appears to owe Domtar roughly $5.1 million. The two appeared to have reached a settlement following a lengthy legal battle over property assessment values. Domtar argued the company’s property was assessed too high in 2009 and 2010.

Both the city’s school divisions are also involved as they collect a portion of property taxes.

The breakdown of the settlement, as laid out in an email by city’s director of financial services Steve Brown, is the city will pay roughly $2.8 million, Sask. Rivers Public School Division $1.5 million and the Prince Albert Roman Catholic Separate School Division approximately $678,000.

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The school divisions’ portions will be covered by the Ministry of Education.

It’s unclear at the moment how the city plans to pay its contribution.

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