From Staff Reports

CANTON — The formal shutdown of Canton’s paper mill will begin on June 9, with the first layoffs, Asheville television station WLOS (News 13) reported on June 2. 

“In the same timeframe, Pactiv Evergreen has argued the plant’s value should be lowered by millions, effectively giving the company a tax break, while bringing in less local revenue,” News 13 stated. “Lowering the valuation is up to Haywood County officials, who met Friday (June 2) to discuss the issue.

“Pactiv Evergreen officials said (that) because of the age and condition of its facility in Canton, the valuation of the property should be about $14 million less. 

“The Haywood County Board of Equalization and Review disagreed with that assessment, the board members making their position clear in a unanimous vote.”

News 13 quoted board Chairman Jimmy Flynn as saying, “We go with the recommendation from the appraiser of no change.” 

Flynn presided at an open meeting at the Haywood County Public Library in Waynesville, where officials reportedly went right to the request by Pactiv Evergreen.

The company said, because of the plant’s “age and design and market conditions for paper mill transactions,” its value should be closer to $6 million and not the county’s appraisal of about $20 million.

“It’s right where the valuation was in 2021. It has not changed,” Flynn was quoted by News 13 as saying. 

Haywood County Manager Bryant Morehead was quoted as saying by News 13 that “the term they used was functional obsolescence — those things. But as the Board of Equalization and Review said, we’d already made those considerations.” Flynn said machinery inside the plant has been maintained in the past two years.

“The equipment is still operable. The fact that they quit using it was really not a bearing because the equipment is there, the land, the property, it’s all there,” Flynn said, according to News 13, which added, “It all came down to the vote.”

Further, Flynn said, “The board unanimously decided that they would make no change to their request to devalue the property.”

Morehead said, “Good news for the county. I think it’s great news for the town of Canton.” The decision safeguards tens of thousands in tax revenues for both.

News 13 added that “Canton Mayor Zeb Smathers has been standing firm with the county’s valuation.”

To that end, Smathers said, “The county, the town ... we are not giving tax breaks, basically is what they’re asking for, to a company that has broken our economy and our hearts ... no.”

In response, Morehead said, “I’m guessing that Pactiv Evergreen will decide to appeal to the PTC --the Property Tax Commission -- but right now that keeps our revenues stable.”

Flynn added, “They can appeal next year.”

“Should the valuation continue to be an issue, the town will fight it all the way to Raleigh,” Smathers concluded, News 13 reported.