City closer to buying Catalyst lagoon

The City of Alberni is applying for a $5.75 million loan from the Municipal Finance Authority to purchase the Catalyst lagoon.

The city’s deal for the Catalyst Paper Corp. lagoon has taken another step towards closing.

Port Alberni city councillors authorized city staff to apply for a $5.75 million loan from the province’s Municipal Finance Authority to purchase the lagoon.

The lagoon is located on the Somass Estuary, across the river from the mill, and sits on land owned by the Port Alberni Port Authority.

Catalyst ceased using its lagoon after they upgraded the Alberni mill with a sludge treatment facility. The facility will enable the city to meet new stringent federal and provincial effluent standards.

The loan would be paid out over two years: $5 million in the first year and $750,000 in the second year. The loan amortization rate would be over 30 years to give the city flexibility to pay it back earlier if it could.

Council’s approval is one of several steps that need to be taken for the loan to be approved. The process is expected to be finished in February.

“This is a legislative process that sets out very specific requirements that have to be met before the loan can be approved,” City Finance Manager Cathy Rothwell said.

In August, the city announced that it reached an agreement-in-principle with Catalyst that included the tentative purchase of the lagoon and key road for a waterfront industrial truck route.

The city has already applied for federal grant monies to purchase equipment to renovate the lagoon. The loan will pay for the acquisition of land and equipment.

The city must upgrade and expand its sewage treatment capacity to remain in compliance with federal and provincial regulations and to handle population growth.

The process will move through a 30 day quashing period before being re-submitted to the province for a provincial inspector’s approval. Afterward, it must pass a third reading in council before the package is sent to MFA for final approval.

Just Posted

Fun had by all at the Rock and Gem Show

Alberni Valley Rock and Gem Club hosts largest event so far

Huu-ay-aht mother reunited with newborn daughter after court case

Mother and child will reside in Port Alberni with supervision and support

Young Nuu-chah-nulth boy remembered by his big, beautiful smile

A six-year-old boy died in a Port Alberni home on March 13

Gord Johns calls on Liberal government to act on unfair newsprint tariffs

U.S. anti-dumping tariff could have “devastating impact” on Island communities

Port Alberni council endorses climate, food security measures

Pared-down list includes market-garden, home conversion incentives

Vancouver Island’s Best Videos of the Week

A look at some of the best video stories from the past week ending March 16, 2018

Experts: Society has a role in trying to prevent domestic violence

Experts are speaking out following the murder of a woman and her son in Ontario

Progress on fixing Phoenix pay system backlog could be short-lived: Ottawa

Feds have said they won’t try to recover money overpaid until all outstanding issues are fixed

Northern lights chasers in Canada discover new type named ‘Steve’

Phenomenon linked to a powerful current created by charged particles in Earth’s upper atmosphere

Washington state backs B.C. in pipeline dispute

Governor Jay Inslee says he is ‘allied’ with the province on Trans Mountain expansion projection

Dead rabbits found at Comox Valley Exhibition Grounds stoke concerns about Nanaimo virus

A B.C. wildlife veterinarian says a few of the dead bunnies will be sent for diagnosis next week.

SAY WHAT? Readers weigh in on high-speed rail to U.S.

B.C. to contribute $300,000 to a million-dollar business study on the proposed project

B.C.-based CEO charged with conspiring to sell unhackable phones to criminals

Vincent Ramos of Richmond, was arrested last week in Seattle in years-long undercover operation

Saanich resident facing numerous charges in north Courtenay shooting incident

Richard Daniel Vigneault, a 27-year-old Saanich resident is facing numerous charges in… Continue reading

Most Read