From Staff Reports

CANTON — North Carolina Attorney General Jeff Jackson announced on Feb. 13 that Pactiv Evergreen has agreed to a settlement with state and local governments following the closure of its Canton paper mill in 2023, Asheville television station WLOS (News 13) reported later on Feb. 13.

“The settlement ends the Department of Justice’s lawsuit against the company to repay millions in grant funds to the state,” News 13 noted.

Meanwhile, a Feb. 13 news release from the attorney general’s office stated that Pactiv will pay $6.25 million in financial restitution and has agreed to drop its legal effort to secure a refund on its 2023 and 2024 property tax payments. Pactiv also agreed not to bill Canton for the operating costs of the town’s wastewater treatment plant.

In a written statement, Jackson said, “Pactiv broke its promise to the state and the people of Canton, and today’s settlement holds it accountable for violating its agreement. 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.”

The attorney general’s office broke down aspects of the agreement as follows:

• Repay $6.25 million to Canton, Haywood County, and the state. Canton and Haywood County will receive $5.75 million, and the state will receive $500,000.

• Waive its right to bill Canton for any cost of wastewater treatment services that Pactiv provided to Canton between 1964 and when it sold the plant last month, including substantial costs Pactiv paid to repair the wastewater plant after Hurricane Helene.

• Withdraw all legal challenges to its 2023 and 2024 property tax payments to Haywood County and Canton for the mill sites and other locations, which could have required the county and town to refund as much as approximately $4.5 million to Pactiv.

Pactiv announced the closure of the century-old plant in 2023, leading to the loss of hundreds of jobs. It was one of the largest employers in Haywood County, Canton Mayor Zeb Smathers previously told News 13.