Espanola looking to move away from forestry a year after Domtar idled the mill
CBC
It's been a year since Domtar indefinitely idled Espanola's pulp and paper mill and laid off most of the 450 employees that worked there.
Potential buyers have since toured the place, but an offer has yet to materialize.
As the northern Ontario town heads into municipal budget deliberations, staff aren't anticipating the paper machines to be turned back on any time soon.
Domtar is in conversation with the province to reassess the value of the decades-old plant on the Spanish River in a bid to reduce its municipal tax bill.
Espanola's chief administrative officer Joseph Burke says the town will operate on the assumption that it will be receiving at least 15 per cent less money from Domtar in 2025, which could result in a loss of $200,000 for the municipality.
The real impact of the reassessment will be felt further down the line, according to Burke.
"Fifteen per cent is really just a preliminary number," he said, adding he hopes Domtar will try to soften the blow.
"It will be a very, very challenging budget process because we will be not only facing potential assessment loss from Domtar, but we are also facing significant increases in other areas of service that are beyond the town's control."
Domtar's sudden closure raised fears that workers would leave town and the value of homes would fall.
But as CBC reported recently, the real estate market there is doing well, and this year's school enrolment numbers suggest most families have not moved out.
Burke says 2024 was actually a record year for new housing developments in Espanola, with the creation of 28 new units since January.
The town has applied for funding from the Federal Economic Development Agency for Northern Ontario (FedNor) to develop an economic diversification strategy that would involve moving away from depending on the pulp and paper industry.
"We don't feel comfortable relying on the rebound of the forestry sector," said Burke.
He says Espanola could bank on becoming a commuter town, and being a service hub for other municipalities in the area.
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