Marathon clears a path to redevelopment: North Shore town acquiring former pulp mill to invite industrial players, investment.

• Author: Ross, Ian
• Position: DESIGN-BUILD

The Town of Marathon has decided to take matters into its hands by acquiring a former local pulp mill in order to spur economic development.

The final demolition of the remaining mill buildings now underway at the Marathon Pulp plant marks the end of an industrial era for the community on Lake Superior's north shore, but it also wipes the slate clean to begin anew.

Town CAO Daryl Skworchinski said they've very close to wrapping up negotiations with Tembec, the mill's former owner, on a purchase and sale agreement, which was to be done by year's end.

A final deal was to be in place by January to bring before a bankruptcy court in the spring.

Skworchinski declined to give specifics on the transaction except to say discussions with Tembec have taken place over the last 12 months toward a final resolution on the property.

Since the closure of Marathon Pulp in 2009, town officials have proactively marketing the brownfield property to bring new industry to the community.

But the property was so heavily contaminated the provincial Ministry of Environment and Climate Change (MOECC) placed stringent conditions prior to any sale process.

Any potential new owner was required to post millions of dollars in financial assurance up front--similar to a mine closure plan--to handle the cleanup should any long-term pollution issues arise.

To town officials searching to place the 200 lost mill jobs, those onerous conditions drove away prospective buyers, who would've been saddled with upfront capital requirements before a venture even got started.

Financial assurance would have to be posted as long as the property remained under private ownership.

Not so, if the municipality acquired it, said Skworchinski.

While the MOECC might frown on such creative stickhandling, Skworchinski said it's all perfectly above board.

"We've gotten a legal opinion on that and we believe we certainly have some creative options to work around that."

The property will remain heavy industrially zoned, and the town will take on the environmental responsibility of monitoring the nearby groundwater.

With hundreds of acres at their disposal, the town's long-term vision will be to market it as an industrial park and lease lots to manufacturing...