Old North News

Attorney General Jeff Jackson and Governor Josh Stein have announced a settlement with Pactiv Evergreen, resolving litigation on behalf of the North Carolina Department of Commerce, the town of Canton, and Haywood County. Pactiv will pay $6.25 million in financial restitution as part of the agreement. Additionally, Pactiv has agreed to halt its legal efforts to recover its 2023 and 2024 property tax payments and will not charge the town of Canton for operating costs related to the wastewater treatment plant.

The settlement concludes the Department of Justice's lawsuit against Pactiv for repayment of grant funds from the North Carolina Department of Commerce. In 2023, Pactiv unexpectedly closed its paper mill in Canton, which had been operational for over a century and employed more than 800 workers.

“Pactiv broke its promise to the state and the people of Canton, and today’s settlement holds it accountable for violating its agreement,” said Attorney General Jeff Jackson. “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.”

Governor Josh Stein expressed satisfaction with reaching a settlement that benefits both Canton and Haywood County. “We are now turning the page and writing a new chapter to help Canton build back even stronger," he stated. "The people of Canton are so resilient; they lost the paper mill and have overcome two major floods in the past three years."

N.C. Commerce Secretary Lee Lilley emphasized that this settlement is vital for recovery efforts following significant challenges faced by residents due to job losses and natural disasters like Tropical Storm Fred and Hurricane Helene. “These funds will not only drive future economic development but also help the community recover from impacts," Lilley noted.

Canton Mayor Zeb Smathers expressed gratitude towards state officials for securing resources essential for creating new opportunities within their community: “This settlement marks beginning new chapter—a chapter building ‘hometown tomorrow’ reflecting our grit resilience commitment."

Haywood County Board Chairman Kevin Ensley highlighted how pivotal role played by paper mill throughout history shaped local economy culture while acknowledging unique opportunity presented through financial jumpstart provided via state's intervention: "As community built strong mountain values—hard work unity—we face challenges ahead together."

Under terms outlined within agreement:

- Pactiv repays $6.25 million distributed among recipients including $5.75 million allocated between both county town alongside remaining portion directed towards state.

- Waives billing rights concerning costs associated providing wastewater treatment services spanning period extending back decades until recent sale transaction occurred last month.

- Withdraws any pending lawsuits regarding previous year's disputed property taxes thereby averting potential refunds totaling approximately $4.5 million collectively impacting jurisdictions involved.

Pactiv recently sold off former site located at heartland region surrounding Spirtas Worldwide effectively ceasing operations entirely moving forward beyond boundaries once defined legacy industry staple area historically renowned nationwide reputation synonymous longstanding heritage contributions made therein throughout preceding generations past present alike enduring testament shared collective experiences lived firsthand daily basis continuously evolving landscape ongoing progress realized evermore increasingly interconnected globalized society today tomorrow beyond...