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LOCAL
Asheville Citizen Times
A multimillion-dollar settlement agreement has been reached between the state of North Carolina and Pactiv Evergreen, the former owner of a 185-acre shuttered paper mill site in Canton.
The $6.25 million settlement, announced Feb. 13 by Attorney General Jeff Jackson and Gov. Josh Stein, ends a dispute over the repayment of millions of dollars in grant funds Pactiv Evergreen received from the North Carolina Department of Commerce.
When the mill closed in 2023, 1,200 regional workers were laid off, marking the start of what some Western North Carolina leaders called an economic "regional crisis."
In 2014, the company had agreed to a Job Maintenance and Capital Development grant for which the mill would receive $12 million in economic development incentives in exchange for promising to maintain operations, and at least 800 jobs, at the paper mill through Dec. 31, 2024.
“Pactiv broke its promise to the state and the people of Canton, and today’s settlement holds it accountable for violating its agreement,” Attorney General Jeff Jackson said in a Feb. 13 statement. “This settlement will allow the people of Canton and Haywood County to immediately put millions back into rebuilding their economy after the mill’s closure, and it will shield them from future litigation from Pactiv. After a devastating few years, this deal gives the people of Canton funds they desperately need right now.”
Under the terms of the settlement, Pactiv will pay $6.25 million in restitution, with $5.75 million going to Canton and Haywood County, and the state receiving $500,000. Pactiv also agreed to end its legal efforts at clawing back property tax payments for 2023 and 2024 and will not bill Canton for costs related to the operation of the town’s wastewater treatment plant.
“I am pleased the state of North Carolina, town of Canton, and Haywood County have reached a settlement with Pactiv worth millions of dollars to Canton and Haywood,” Gov. Stein said in a Feb. 13 statement. “We are now turning the page and writing a new chapter to help Canton build back even stronger.”
Stein filed the suit in May 2024, when he served as the state’s attorney general.
Canton Mayor Zeb Smathers described the settlement deal as “a new chapter for Canton,” one that will “build the ‘hometown of tomorrow’ that reflects our grit, resilience, and commitment to our community.”
“I am grateful to the state for their hard work in securing these resources, which will allow us to create new opportunities, jobs, and lasting stability without Pactiv,” Smathers said in a statement.
In a Feb. 13 statement, Pactiv said it was "pleased to have resolved with the State of North Carolina all outstanding matters relating to the closure and sale of our former Canton mill site."
"We thank our employees for their contributions to our company and wish the Canton community well in this next chapter for the Town," the company said.
‘It's time to rebuild Canton’
Champion Fibre Company opened the mill in 1908, and it served as a crucial regional employer until its closing in 2023. In the time it operated, the mill changed owners several times, eventually being purchased by Evergreen Packaging, which merged into Pactiv Evergreen in 2020. It was announced in December that Pactiv Evergreen would be sold to the Charlotte-based Novolex in a transaction worth $6.7 billion.
Along with the mill being the subject of numerous legal proceedings and a recent sale, the North Carolina Department of Environmental Quality has continued probing current and former mill owners about environmental remediation at the site, the Citizen Times previously reported.
In January, Spirtas Worldwide purchased the site of the old mill, marking the end of a short legal back-and-forth between Pactiv and the site's new owner. Since the sale was completed, Spirtas Worldwide CEO Eric Spirtas said that all legal proceedings regarding the sale were complete.
"It's time to rebuild Canton," Spirtas told the Citizen Times in January.
As for the future of the mill, Spirtas said that he just needs time to work toward the future of the site.
"Things will happen within this year and then bigger things will happen after that," he said.
Will Hofmann contributed reporting.
Jacob Biba is the Helene recovery reporter at the Asheville Citizen Times, part of the USA TODAY Network. Email him at [email protected].