THE PAS – The Town of The Pas is offering Tolko Industries a massive tax break in hopes it will delay the closure of its paper mill.
The company announced last month they would close up shop on December 2nd and layoff the than 300 workers, because the owner’s say the mill is no longer financially sustainable.
Mayor Jim Scott says Tolko leaving would cripple the town’s economy. But, he’s found a temporary solution by offering them a tax break of $840, 000 a year for three years.
This would essentially see Tolko save millions of dollars in taxes by not having to pay property tax, business tax or education taxes.
Scott tells 680 CJOB this isn’t a Hail Mary.
“I just see it as checking out every possible opportunity. We have a very narrow window here. I know it closes on December 2nd, but we really need to have someone in place in the next two to three weeks as a viable purchaser.”
He adds the impact of Tolko leaving is far greater than the town losing out on millions in taxes.
“They provide an annual payroll of $37-million. So, 2.5-2.6 hurts, hurts, hurts, but that’s a pain that you can live with. It’s a lot easier to live with that than losing out on 37-million.”
Scott is hoping to hear back from Tolko either Wednesday night or Thursday morning.