Monday, February 15, 2010

Six bids for defunct Pulp Mill meet $13.5M asking price

The City of Prince Rupert, who took over ownership of Watson Island Pulp Mill in Port Edward following Sun Wave's inability (or unwillingness) to pay their outstanding property tax bill, have received six offers to purchase that meet the $13.5M asking price.
Details of the bidders are a closely guarded secret although Lax Kw'alaams Band has made their involvement public knowledge.
The site, one of the few deep water harbourages in North America with direct docking access to land plus a railway line going into the middle of the site, is situated 15 highway kilometres from the new port development in Prince Rupert. The hope of the citizens of Prince Rupert and Port Edward is that whoever the City eventually sell the site to it will provide some long-term, well paid permanent jobs. The old Pulp Mill employed 650 people in its prime and whilst it is probably overly optimistic to assume that that many jobs will be created by whatever new enterprise buys the site, the fact that six bids have been received surely bodes well for future employment.
The City of Prince Rupert is still poring over the respective bids and are 100% leak free on who the bidders are.
The interest in this sale is not restricted to the citizens of Prince Rupert and Port Edward. Speculative purchases of property which have dried up in the last two years are beginning to pick up again as investors realise that in order to achieve the best return on investment they have to buy on the rumour and sell on the news.
With the Watson Island Pulp Mill sale in the pipeline and continued optimism surrounding the potential investment in Prince Rupert by Canpotex, what other companies that we have not heard about are in the background waiting to take advantage of all the geographical advantages that Prince Rupert has to offer?

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