Al16- The Terrace Standard, Wednesday, November 21, 2001 Mayor defends plan to buy into Skeena Cel By JEFF NAGEL BUYING SHARES in Skeena Cellulose muy make sense when weighed against the dangers of bankruptey, mayor Jack Talstra says. Northwest towns have offered to raise up to $20 million and Swiss-based Mercer International has made that a condition of its offer ta buy SCI. Terrace’s share — if the community buy-in pro- ceeds — would be $5 mil- lion. Annual costs of bor- rowing that much, amor- tized over 25 years, would be $430,000. If that entire amount was added to city taxes, Terrace taxpayers would see about a six per cent tise in property taxes. Talstra said it’s haped local taxpayers would ei- ther put up very little or none of the money reé- quired each year. But Talstra said even if taxpayers’ money had to be part of the deal - a sce- nario that would require a local referendum in Jan- uary or February — it may have to be considered. “If public money is re- quired, I think we rationa- lize that on desperation,” Talstra says. “We really are between a rock and a hard place.” SCI’s sawmill is worth about $830,000 a year to Terrace in property taxes, he noted. “lf you lose that over lime somebody has to pick that up,” he said. “Either- taxes get raised in Terrace by 10 per cent or we lay off a dozen people at city hall.” Lost sawmill and log- ging jobs here plus the the hammer blow to Prince Rupert’s economy could in turn cripple retailers here, he said. Property values would drop further, he predicted, Jeading to a_ situation where many homes are worth less than their mort- gages. “Then the bank gets very suspicious about you,” Talstra said. “And if you miss a payment or (wo they come knocking,and they may decide to fore- close against your house.” Every 10 per cent drop in property taxes erases $65 million in property equity here, he added. “It's a whale stack of cards here that could fall,” Talstra warned. “We don’t want to buy a pig in a ae cota Jack Talstra poke either.” Talstra said the hope is that the city would effect- ively coordinate other con- tributions. Unionized sawmill workers here have already voted in principal te con- tribute up to 2.5 per cent of their wages, which could cover close to 40 per cent of the Terrace debt costs. Contractors may also contribute, as well as other businesses with a direct vested interest. Northern Savings Credit Union, which is contem- plating a $1 million stake of its own in the partner- ship, is an example of that. Ken Earl, of Northern Savings Credit Union, said the risks of not getting in- valved may outweigh the costs. “It’s one of those things where you’re going to be damned if you do and damned if you don’t.” Taistra admitted much of the plan is clouded by unknowns. But the first step is gel- ting more detail from Mer- cer on its business plan — something that’s expected to happen within the next couple af weeks. “We want to see the business plan of Mercer before we make a recom- chiding our public,” Tal- stra said. The towns would also have lo negotiate how many and what type of shares they’d get in SCI tor their money — or even whether to take shares. Another option is to in- stead make the contribu- tion a loan, They also want a de- fined “exit strategy” that would allow the towns and other participants to with- draw their money within at most five years. The government would also have to pass legisla- tion allowing towns to in- vest in private companies. The deal could also come apart if Mercer and’ the City of Prince Rupert can’t agree on payment of SCI's outstanding $11.7 million property tax bill there. The puts of any agree- ment by the lowns to buy in would have to be ham- mered out by Dec. 14 - the next court date — or else a judge might decide the sale is unlikely to go ahead. Falstra said he hopes local taxpayers will get a camplete picture of the pian to rescue Skeena Cellulose by the end of December ahead of any New Year referendum. Municipal reps also suggested the Mercer deal may hinge on the govern- ment agreeing to radically change forest regulations here. The idea is SCI would be allowed to cheaply log the high-pulp content for- est on an emergency sal- vage basis, similar to the beetle wood kill situation in the interior. “I think the main issue is whether Mercer can pet the kind of agreements from the province on for- estry regulations it hopes to get,” Talstra said. “That could be a deal maker or a deal breaker.” Hazelton and Smithers considered but decided not to put up $1 million be- tween them. “We don’t believe that local government should be involved in this type of private sector venture,” said Smithers mayor Brian Northup. Talstra said he hasn’t ruled out finding other partners, from the Kitimat- Stikine regional, district’s rural areas to aboriginal communities. “We will bang on a iat of doors between now and Christmas,” he said, Veldman admitted there’s little public appe- tite for local taxpayer in- vestment in Skeena Cellu- lose. The wrong hangar AN ACT of vandalism in which sand was placed in the engine of an airplane did not take place in the TK Avia- tion hangar, says a co-owner of the company. The sand was only discovered in the Seneca aircraft owned by Wayne Webber when it was moved to the hangar from an adjacent one for servicing, says Glenn Ruzycki who is also the company’s director of mainte- nance. Information to the contrary appeared in the Nov. 14 edition of The Terrace Standard. A police investigation into the incident, as well as the placing of sand in a second aircraft owned by Web- ber, continues, mendation to anybody, in- eri aaa rere (COME IN AND SEE US, Evel Canada Fisherles and Oceans Péches et Océans Canada Public consultation on Tahtsa Narrows Project Scoping Report In April, 2001, the provincial Ministry of Sustainable Resource Management and Fisheries and Oceans Canada initiated a Coordinated Federal CEAA/Provincial Water Act Review Process to review Alcan's proposed Tahtsa Narrows Project, As part of the Review Process, a draft Scoping Report (Nov. 2001) has recently been released to the public. To provide opportunities for the public to receive information and to comment on the draft Scoping Report, three public sessions will be held in late Navember/early December in the Nechako Reservoir region. The objective of this phase of public consultation is to ensure that all pertinent issues of concern to the government agencies, First Nalions, and the public with regard to the Tahtsa Narrows Project have been identified and are being appropriately considered, The public will be provided additional opportunities to comment as the review proceeds. Public consultation will take place at the following times and lacations: November 26, 20014 (7:00 Wistaria Communily Halli Wistaria, 8.C. A number of copies of the draft Scoping Report have been distributed to individuals and organizations throughout the region. December 3, 2001 (7:00 p.m} Seniors’ Friendship Hall Vanderhaof, B.C, Others interested in reviewing it can obtain copies at: ¢ Alcan's Skins Lake Spillway - Daryl McDonagh 250-694-3532 @ Burns Lake Public Library - 585 Government Street — @ = Ministry of Sustainable Resource Management 2™ FI. - 3726 Alfred Avenue, Smithers 250-847-7260 @ FortFraser Chamber of Commerce — 250-690-7733 The draft Scaping Report's available ontine at www.elp. gov, bo.calwal/ahisa or Alcan's B.C. wabsite at yeww.sno.nevaloan Written comments are required from the public by January 14, 2002, identifying any missing Issues arid any Terms of ~ Reference for studies that are incomplete, incorrect or missing. Written responses must be mailed, faxed or.e- mailed to the following address by January 44, 2002: Tahtsa Narrows Project Review ‘ofo Water Planning & Allocation Branch Ministry of Sustalnable Resource Management . PO Box 9340, Stn, Prov. Gov. Victoria, BC VBW SM4 * Fax: 250-387-1898 If you have questions about the publi consultations, please contact Ministry of Sustainable Resource Management. 260-356-8384 Wenda Mason E-mail: wanda, mason@gems6 Ov. > * Fisheries and Oceans Canada Linda Suffivan Burns Lake, B.C. December 5, 2001 (7:00 p.m.) Burns Lake Chamber of Commerce Alcan Regional Office — Vanderhoof 158 West Stewart Street - 250-507-5105 Houston Public Library — 3150 14" Street Fisheries and Oceans Canada -— Prince George, 3690 Massey Drive, Prince Soot? eames “260-668-3575 : Pat Gerhard) i "ps0-ser-sios Oneraied By Electronic Futures 47410 Keith Ave. Mall 635-7767 Sra * Oil change up to’ 5 litres of Motorcraft 5W30 engine oil" . _* Motorcraft oil filter . ‘ Top up: - - Power steering fh ‘uid oo Brake fi d * Lubricate chassis / hinges/lacks * Tires checked and inflated. * Battery test and report a Brake inspection. * Applicable to most cars and flight trucks. Vehicles equipped with diesel engines are extra, Taxes and provinclal levies not included, where opplicable, Dealers may sell for less. See in store for details. ** Environment disposal fee may apply.