Riversedge Developments faces $ 2.2 million lawsuit for Red Rock plant tax bill (4 photos)


The company, which was once based in Sault Ste. Marie, bought the old Red Rock stationery for ten dollars in 2014 and appealed the tax assessment. Now the city goes on

RED ROCK – The Township of Red Rock has filed a lawsuit against Riversedge Developments, asking for $ 2,270,000 in property taxes it claims owe the current owner of the former Norampac plant.The claim has not been proven in court.

It was originally filed in Thunder Bay Superior Court last March, but was only confirmed this week by Red Rock Mayor Gary Nelson.

Riversedge was involved in the cleanup of the old St. Mary’s paper mill and was once based in Sault Ste Marie, but according to its website, it now operates in Otterville, Ont., A village between London and Brantford.

He purchased the 243 hectare Red Rock site from the Township for $ 10 in 2014.

Riversedge said it was looking to build a wharf that would allow a new manufacturing company to ship biomass pellets out of Red Rock, but the project never materialized.

In an interview on Monday, Mayor Nelson said the former industrial site “looked like a war zone. So we’re going to take them to justice to try to get at least some of our back taxes, or try to get them back to town to clean up the place. ”

In a statement to Tbnewswatch, Riversedge CEO Justus Veldman said he couldn’t comment “because the tax issue is before the courts and MPAC,” but the company intends to defend itself against the action.

Veldman appealed against the Municipal Property and Assessment Corporation’s assessment of ownership of the plant for tax purposes, on the grounds that it was no longer an operating paper mill, but “simply a empty industrial landfill site ”.

According to Nelson, MPAC has since lowered the valuation, but the township “still hasn’t got anything” from the company.

Veldman’s statement on Tuesday added that he was working with officials from the provincial Department of the Environment “to come to a conclusion and solutions to an environmental mess left by the former owners” of the plant site.

He also owns the Red Rock Inn.

Veldman said his business continues to invest in the community, and called the hotel a “good example of when you work hard and double down, you can do a good job in these cities abandoned by the big industries of the North.” of Ontario ”.

Riversedge Developments acquired the former Resolute pulp and paper mill in Fort Frances last year.

The company and the Rainy River First Nations recently announced a partnership to redevelop the properties.

A press release says the two parties, working with the Town of Fort Frances, will work over the next year to define the most viable and best end use for the site.

Shortly after closing the transaction with Resolute, Riversedge announced that it was studying the feasibility of establishing a cannabis production facility in Fort Frances and working with “world-class” cannabis production partners.

There has been no subsequent announcement related to this initiative.

– Tbnewswatch


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