Sturgeon Falls forges on.

• Author: Ross, Ian
• Position: News

In struggling to recapture its industrial base following the December closure of the Sturgeon Falls Weyerhaeuser mill, West Nipissing is putting the building blocks in place to pursue economic prosperity once again.

"We've certainly been active in trying to create economic opportunities," says Royal Poulin, chairman of the West Nipissing Community Adjustment and Recovery Committee (CARC) entrusted with finding a new economic direction for the municipality of 13,650.

About 140 former Weyerhaeuser employees lost their jobs when the company closed the Sturgeon Falls containerboard mill Dec. 6, 2002.

The acquisition of a hydroelectric power dam from Weyerhaeuser by the municipality is expected to be complete this fall.

West Nipissing Mayor Gary O' Connor views the acquisition of the Weyerhaeuser dam as its competitive edge in its toolbox to lure any potential new business to town.

The deal included 48 hectares of industrial land along Highway 17 and in the Bay Street-Leblanc Road area.

O'Connor says acquiring the power plant and land secures the assets to assist in future diversification and development of West Nipissing to attract new business to Sturgeon Falls.

He says the deal, which has yet to be finalized, resulted in a $100-million lawsuit filed by the West Nipissing Economic Development Corp. in relation to the mill closure being dropped.

Poulin, who is also chairman of the Ontario Northland Transportation Commission, expects the dam to be in the town's hands by October, once legal work is completed. Weyerhaeuser agreed to sell the dam to the municipality in early July.

After that, it will be up to West Nipissing council to decide how the plant will be administered, operated and how the power generated will be best used.

Currently the power generated becomes part of the Ontario grid, and will continue as such until a legal operating structure is created by the town, says Poulin.

The dam produces 7.4 megawatts per year, but there is a plan to increase production to 11 megawatts.

Poulin says a preliminary engineering report indicates the dam is in good physical shape and the option to increase power production will be up to council.

"We know we can increase the amount of energy this dam can create, and that will be the next step after we have...