$470,000 will be immediately paid to Castlegar, British Columbia from its number one employer.
The Zellstoff Celgar pulp mill had engaged in a tax standoff with the city. The company has been unhappy with the high tax rate and has requested a 50% reduction.
Zellstoff Celgar now owes $2.7 million in back taxes.
The company has said that improved dialogue with city officials has prompted them to make an immediate payment with monthly payments forthcoming.
Celgar wants the discussion of tax rates to be taking to a provincial level.
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B.C. pulp mill says local taxes paid after thaw in relations with city (CP)