Enduring through disaster: how is Canton doing 10 months after mill closure?

Much has transpired since that announcement — one that was fraught with far more complications in Canton than accompanied most industry shut-downs.

While the fate of the workers has been front and center since the beginning, the closure has a direct impact on the town, as well. The paper mill treated the town’s sewage under a long-standing agreement, but that will end in March 2025, with the clock ticking to figure out a plan B.

Then there’s the $3 million in property taxes that Canton got from the mill and its various properties — a number that will be drastically reduced, but not entirely gone.

The “what now” issue has preoccupied town and county leaders since the announcement.

“In some regards, we’re farther along now than I thought we would be,” said Canton Mayor Zeb Smathers. “In other regards, we’re not.”

Workers moving on

While getting a new job somewhere else can’t replace the community fabric of being a mill town full of mill workers, the availability of other jobs in the region has been a silver lining.

“I think most mill workers have gotten jobs. They’re paid less and travel farther, and a lot of workers have gone through several jobs,” Smathers said.

Haywood County Commissioner Tommy Long is a farmer and was a mill employee until the final day of operation in June.

Like many long-time workers, the severance package based on years of employment put workers in a bind. If they got a new job immediately, they would end up in a far higher tax bracket by getting a pay check before their severance ran out. If they took some time to examine options, or perhaps spend time on retraining, would the available jobs be gone?

Long said his crew, one that worked with electrical instruments across the mill, had an impromptu Christmas party where they were able to catch up.

Some have simply retired, Long said, while others have been through several jobs. One person got a good job with good pay, but was at the age he was physically unable to work night shift all the time. Several have started their own businesses and are doing well, he said, and a number of others have found good jobs they absolutely love.

“As an employee, I’ve really appreciated the overwhelming support,” Long said. “It’s not been political, and it’s come from so many different areas — community, state, federal. It’s wonderful to see that support around a bad situation. It’s out there, and I hope people take advantage of the opportunity if they need it.”

In addition to the strong manufacturing base in WNC with a high demand for workers, a National Dislocated Worker Grant opened the door for free education and paid on-the-job training for those seeking a new career path.

Landing a major grant from the Dogwood Health Trust helped ease another major worry — defraying the cost of health care coverage through the end of the year. The county and other organizations stepped up, too, and there was plenty to defray insurance costs through December.

“There are so many resources out there, and one of our jobs was to provide every opportunity possible,” Smathers said.

What about the property?

Another looming question is what will happen with the mill site that’s gone dark and still standing where it was built by Peter Thompson and opened in 1908.

“Evergreen controls the site, but we are constantly looking for ways we can play a part in determining its future,” Smathers said. “I feel like we’re two years ahead of schedule compared to where other communities have been in times like this. I attribute that to our people. In many places, communities are paralyzed for a year trying to have conversations about what’s next. We’ve been doing that since the day we learned of this.”

Smathers said there is a lot going on, but he can’t disclose anything about the discussions.

“I can say 98% of the rumors are 100% not true,” he said. “It is very important for all of us working on this that we don’t announce anything until we know it’s true. We don’t want false hope.”

Lingering environmental issues, including seeping groundwater contamination from a mill byproduct known as black liquor, add another layer to the site’s future.

“The town and county continue to dialogue with Pactiv Evergreen and state officials and are working through the next steps with the property — from contemplating environmental concerns to considering the best use of the property,” Francis said. “It’s a process, a very active process, but it will take time. Evergreen is a private company. They still have obligations they need to meet with the state.”

How’s the town?

The shock of the mill closure begged the question: How will the town get by without its mill?

So far, the answer in the business community has been a pleasant surprise.

Downtown merchants report they have had bang-up sales in 2023. Whether that’s from curiosity seekers, the push by top state officials urging folks to support Canton or the numerous events sponsored by merchants remains to be seen.

If any mill employees moved out of the area, one thing is for certain. Their homes weren’t long on the market. The red-hot real estate market has meant homes put up for sale move quickly and bring top dollar.

Canton’s town budget looked much different last year because of the millions of dollars in federal and state grants that flowed in due to the August 2021 flooding that significantly damaged many town facilities.

In a normal year, however, a typical town budget is between $11 and $12 million, and the tax revenue from the mill property amounts to roughly $3 million, which represents a sizable hole to fill.

This year’s state budget included a $3 million grant for Canton, but town leaders realize the funding will have to be stretched paper thin.

“There are tough, challenging days ahead,” Smathers said. “As hopeful as I am, we will be tested in the days ahead. Who knows what that will look like.”

The town board’s plan is to not cut services, he said, and it is likely there will be another request for state funding to help fill the gap.

Wastewater treatment

Finding a long-term solution to the town’s wastewater treatment dilemma has proved to be a challenge.

David Francis, the county’s economic development director, has been integrally involved with the mill closure response, including the effort to find a site for a new plant — one that’s out of the flood plain and the Canton downtown area.

“It’s a huge concern, and we talk about it every week,” Francis said.

The good news is, the recently passed state budget contains $38 million earmarked to build a sewer plant once a site is found.

That part is taking a while. In conjunction with McGill Associates, a number of sites have been found, but closing a deal has proven time-consuming.

“Water and sewer are one of the big chapters to be written in the first half of 2024,” Smathers predicted. “We’ve identified the top locations where we can place wastewater, but nothing is official. The board realizes when they narrow down the sites, there will be some people who’ll not be happy wherever we put it, and we want to be able to listen to all the concerns with an open mind.”

Smathers said it is important to note that modern wastewater treatment plants are far different from the one that has served Canton for 60 years. He said town leaders will be traveling to other communities to see the various options for treatment plants to make sure the town selects something that is the right fit.

It won’t be done before Pactiv Evergeen relinquishes its responsibility for the mill wastewater plant in March 22025, however. So the town will take over operations until a new plant is built.