CANTON, N.C. (828newsNOW) — Pactiv Evergreen has reached a settlement with state and local officials in the latest action surrounding the closed paper mill in Canton.

Attorney General Jeff Jackson and Gov. Josh Stein on Thursday announced a settlement with Pactiv Evergreen on behalf of the North Carolina Department of Commerce, the town of Canton and Haywood County.

Pactiv Evergreen will pay $6.25 million in financial restitution. The settlement also provides millions in additional value to Canton and Haywood County because Pactiv Evergreen has also agreed to stop its legal efforts to get a refund of its 2023 and 2024 property tax payments and agreed to not bill the town of Canton for operating costs for the town’s wastewater treatment plant, according to a news release from the attorney general’s office.

The settlement will conclude the Department of Justice’s litigation against Pactiv Evergreen to repay millions in grant funds from the North Carolina Department of Commerce.

In 2023, Pactiv Evergreen abruptly closed the paper mill in Canton, which had been in operation for more than 100 years and employed almost 1,000.

“Pactiv broke its promise to the state and the people of Canton, and today’s settlement holds it accountable for violating its agreement,” Jackson said in a news release. “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.”

Pactiv sold the Canton mill site last month to Spirtas Worldwide and has ended all business in Canton. Spiratas said the historic 185-acre site will be transformed “to accommodate a mix of industrial, commercial, and residential projects.”

“This settlement marks the beginning of a new chapter for Canton — a chapter that will build the “hometown of tomorrow” that reflects our grit, resilience and commitment to our community,” Canton mayor Zeb Smathers said in the release. “I am grateful to the state for their hard work in securing these resources, which will allow us to create new opportunities, jobs, and lasting stability without Pactiv.”

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“I am pleased the state of North Carolina, town of Canton, and Haywood County have reached a settlement with Pactiv worth millions of dollars to Canton and Haywood,” Stein said in the release. “We are now turning the page and writing a new chapter to help Canton build back even stronger. The people of Canton are so resilient; they lost the paper mill and have overcome two major floods in the past three years. They will build a brighter future, and the state is committed to working right alongside them to help.”

“This settlement is a crucial step toward healing and rebuilding for the people of Canton and Haywood County, who have faced immense challenges following the closure of the paper mill,” Commerce Secretary Lee Lilley said in the release. “These funds will not only drive future economic development but also help the community recover from the impacts of job loss, Tropical Storm Fred, and Hurricane Helene. We are committed to ensuring that Haywood County emerges stronger, with new opportunities for workers, families, and businesses to thrive.”

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“The paper mill has helped define our county for over a century, shaping both our economy and our way of life,” Haywood County Board of Commissioners Chairman Kevin Ensley said in the release. “I am thankful to the state for providing this financial jumpstart and now we have a unique opportunity to honor our past while forging a new future. As a community built on strong mountain values—hard work and unity—we will face the challenges ahead together. I believe we are laying the foundation for new industries that will once again transform Haywood County. My greatest hope is that we will stand proud of what we accomplish, setting the stage for the growth and opportunity.”

Under the terms of the settlement, Pactiv Evergreen will:

  • Repay $6.25 million to Canton, Haywood County and the state. Canton and Haywood County will receive $5.75 million, and the state will receive $500,000.
  • Waive its right to bill Canton for any cost of wastewater treatment services that Pactiv provided to Canton between 1964 and when it sold the plant last month, including substantial costs Pactiv paid to repair the wastewater plant after Hurricane Helene.
  • Withdraw all legal challenges to its 2023 and 2024 property tax payments to Haywood County and Canton for the mill sites and other locations, which could have required the county and town to refund as much as about $4.5 million to Pactiv.

A copy of the settlement is available here.