City awaits word on $35-million plant (KAMLOOPS)

By MARKUS ERMISCH Staff reporterJul 16 2006 http://www.kamloopsthisweek.com/
Tolko won't say which cities are in running, but Kamloops has shown industrial sites. Contrary to other communities in British Columbia, Kamloops' industrial-land base is immense, and the land is cheap. This is one factor Tolko Industries Ltd. is examining while deciding whether to locate a $35-million value-added plant in the River City. A decision of where to locate the plant remains to be made - according to Tolko, that will happen in the next three to four weeks - but Venture Kamloops head Jeff Putnam said he remains hopeful Kamloops is still in the running. "We're still very optimistic," he told KTW Thursday afternoon, noting that Venture Kamloops had last been in contact with the Vernon-based forestry company three weeks ago. Putnam said he had been in "detailed discussions with Tolko," both in Kamloops and in Vernon, and identified several locations in Kamloops where a plant could be built. Putnam said he cannot comment on which sites were shown to Tolko. Tolko spokeswoman Sheila Catlin was tightlipped about Thursday's announcement and would only reveal that Tolko has narrowed negotiations to three to four locations. She did not say where the company is looking, and even refused to divulge which province or provinces. Tolko has operations in B.C., Alberta, Saskatchewan and Manitoba, operates a mill in Heffley Creek and has about 5,000 employees. While deciding where to build a plant, the company takes several factors into considerations, Catlin said, but didn't want to discuss them. The new plant, a so-called I-Joist plant, will initially employ 25 people on a one-shift basis. It will have a capacity to produce 90 million lineal feet and may be expanded to two shifts. Tolko's announcement comes hard on the heels of a decision by Kamloops city council to not support the creation of an industrial land reserve, similar to the Agricultural Land Reserve that is administered by the Agricultural Land Commission. Council decided this past week against supporting such a reserve because industrial land in Kamloops is plentiful, opining that it would simply create one more provincial body. Putnam said that given the current absorption rate of industrial land, Kamloops will be well-supplied for the next 20 years.

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DON QUIXOTE NOTE: Heavy Industrial Municipal Property Tax Rates
For example:A 35 million dollar plant in Coldstream would be charged $1,047,930 annually at the 2005 Heavy Ind. rate of 29.94088. The same plant in Trail would be charged $653,842 at their 2005 rate of 18.68120 and only $470,722 in Logan Lake. (AND REMEMBER THESE DO NOT INCLUDE REGIONAL OR SCHOOL TAXES WHICH ARE CAPPED AT SET RATIOS .) The taxes in Kelowna at their 2005 rate of 18.25900 would be $639,065 which contrasts with the 19.16004 rate and $670,601 charge in Lumby and the charge of $1,196,874 at 34.19640 in Spallumcheen. THIS PLANT IN KAMLOOPS WOULD BE TAXED AT THEIR 2005 RATE OF 71.6 or $ 2,506,000.