POWELL RIVER, BC, Sept. 19, 2014 /CNW/ - The Tla'amin First Nation and
City of Powell River have completed the transaction to purchase
Catalyst Paper Corporation's interest in the PRSC Limited Partnership,
a unique joint venture that was established by the three parties in
2006 to sell and redevelop lands that were surplus to Catalyst's
operations in the community.
Through its wholly owned corporations, Powell River Waterfront
Development Corporation (City) and Tees'kwat Land Holdings Ltd
(Tla'amin), the parties retired the mortgage being carried by PRSC and
acquired Catalyst's interest in the Limited Partnership for $3 million.
The transaction was approved by the courts in 2012 when Catalyst was
undergoing financial restructuring while under creditor protection.
Powell River Mayor Dave Formosa stated that "We looked at it as an
opportunity for Sliammon and the City to develop and carry out their
strategic initiatives, while simultaneously assisting Catalyst during
its restructuring. We felt the amount to retire the mortgage and
acquire the company's interest in the Limited Partnership was more than
Tla'amin Chief Councillor Clint Williams says, the completion of the
purchase re-establishes a connection to lands that are economically
important to Sliammon, and to the City of Powell River. As part of the
transaction, Sliammon and the City agreed to secure two equally sized
parcels of land (5.5 acres each) on PRSC's Marine Industrial property
(District Lot 4070) for individual economic development goals. The
parcel that will be secured by the First Nation will fulfill a long
standing goal for its business interests. "One of the reasons Tla'amin
became involved in the Limited Partnership, was to secure land to
establish a log dump and sort for its forestry operations. This
transaction not only allows PRSC to retire the mortgage for a fair
price, but to secure the lands necessary to ensure the success of
Thichum Forest Products."
"We are pleased to arrive at the final stages of this jointly beneficial
agreement," says Catalyst President and CEO Joe Nemeth. "This
transaction represents a mutual investment in community prosperity and
continued cooperation between community and our industry. It addresses
the City and Tla'amin's need for a diversified economy while enabling
Catalyst to focus on core operations."
As a result of this transaction the Limited Partnership Board will be
restructured to have 3 representatives from each partner. Representing
Tees'kwat will be Chief Councillor Clint Williams, Councillor Walter
Paul and Sliammon Development Corporation President Roy Francis.
Representing PRWDC on the PRSC Board will be City CFO Shehzad Somji,
and Powell River citizen appointees Kevin Sigouin and Chris Roddan.
SOURCE: Catalyst Paper Corporation
For further information:
City of Powell River
Tla'amin First Nation
Catalyst Paper Corporation