news-mayor provenzano


The City of Sault Ste. Marie is again going to bring forward a motion calling for Essar Steel Algoma to immediately pay back property taxes it owes the City since it filed for creditor protection back in November of 2015 and all future post-filing property taxes.
Justice Frank Newbould ruled in favour of Essar Steel Algoma in June 2016 and against a challenge made by the City at that time.
The City affidavit states that the municipality is owed a total of 26-million dollars which represents 25% of the City’s annual tax levy—–that includes pre-and post-filing tax obligations.
Mayor Christian Provezano says we are a year down the road since Justice Newbould’s decision and the city is facing a very different set of circumstances and the court has a lot more information to consider…


Provezano says frankly he doesn’t think the court monitor Ernst and Young would be acting responsibly to recommend the court continue to stay the taxes and he had this message for the local steelmaker…


The City affidavit outlines options that council will have to consider if taxes aren’t paid—-levying the shortfall on the backs of residential taxpayers would mean an estimated 12 to 20% tax increase.
The City would be facing a timeline of mid-to-late summer to implement major cost adjustments if nothing changes.
The affidavit explains that the City would need to find 6 to 7 million dollars in either savings or revenue or a combination of both in 2017—–cutting entirely from its operating budget to make up the shortfall would conservatively represent a loss of 80 to 150 employees.