Davidson industrial site hit with foreclosure
Unpaid taxes amount to roughly $500,000
Article published on 26 January 2022
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The saga surrounding the relaunch of the Davidson mill has taken a new turn. The municipality of Mansfield-et-Pontefract initiated foreclosure proceedings yesterday with the numbered company that currently owns the site, claiming they are owed $469,092 in unpaid taxes dating back to 2007. The seizure targets several lots located a 79 rue Thomas-Lefebvre in Mansfield-et-Pontefract.

Amounts related to municipal taxes for the year 2021 and 2022 may be added, so the amount owed by the company, 9179-2218 Québec inc., could exceed $500,000. In the past, the municipal council of Mansfield had concluded legal agreements with 9179-2218 Québec inc., which had been based on a restart of activities and the Energy Davidson project. When these agreements expired the municipality moved forward with the foreclosure process.

Reached by telephone, the site’s promoter Bruno St-Cyr said that he was working to solve the issue.

“What we are aiming for is to resolve the situation and we are working on several avenues. We want to resolve the situation to stay on site and carry out the project,” he said (translated).

The municipality isn’t the only creditor seeking compensation, as the Hauts-Bois-de-l’Outaouais school board and other companies have also, since 2012, filed legal documents to guarantee payment of the debt, allowing them to be paid on a priority basis.

9179-2218 Québec inc. has until January 31 to pay their debt, otherwise, proceedings for sale for unpaid taxes could be initiated. According to information obtained by CHIP 101.9, this seizure does not necessarily mean the end of industrial activities on this site, since other parties could acquire the business when the sale for taxes takes place.

Brief history of the Davidson file

Scierie Davidson was purchased in the summer of 2007 by 9179-2218 Québec inc. A few months later, the company closed its doors given the reality of the forest industry. St-Cyr then submitted a project to relaunch the activities of the sawmill and integrate a cogeneration plant. After obtaining an agreement with Hydro-Québec for the sale of electricity through the establishment of a cogeneration plant, St-Cyr, together with the elected officials of Mansfield-et-Pontefract, increased the meetings with the government in order to relaunch the factory. During its years of inactivity, not being able to pay its fees, Scierie Davidson lost its supply guarantee (GA), which gave it the right to purchase an annual volume of timber to supply the wood processing plant. Between 2010 and 2018, the Municipality of Mansfield-et-Pontefract filed legal mortgages and entered into agreements with the promoters of the site’s relaunch to ensure that they were paid for the taxes.

Between 2019 and 2021, Scierie Davidson met with the MRC Pontiac and presented different scenarios for the relaunch of the site. On January 25, 2022, after about 15 years of inactivity, the Municipality of Mansfield-et-Pontefract initiated foreclosure proceedings to recover the unpaid tax money. The current owners of the Davidson Sawmill have until January 31, 2022 to pay the taxes.

Links to various articles related to the Davidson Energy project

January 29, 2019: The project to revive forestry activities at the Davidson site: “Only two million are missing” - Bruno St-Cyr - http://chipfm.com/The-forestry-activity-revival-project-at-the-Davidson-site-Only-two-millions

February 8, 2019: An extension until February according to Bruno St-Cyr - http://chipfm.com/Davidson-Sawmill-deadline-extended-to-February-according-to-Bruno-Saint-Cyr?lang=en

November 18, 2019: “Hard to say, but I hope it happens in the short term. It has to be done in the next three months” - Bruno St-Cyr - http://chipfm.com/Revival-of-Davidson-Mill?lang=en

March 3, 2020: The Davidson Sawmill is waiting for a guaranteed supply - http://chipfm.com/Company-would-need-a-guarantee-of-supply-to-open-the-Davidson-Sawmill?lang=en

June 23, 2020: Mobilization around Davidson Energy - http://chipfm.com/Mobilization-around-Davidson-Energy?lang=en

August 6, 2020: The Davidson Energy project raises hope in the Pontiac - https://ici.radio-canada.ca/nouvelle/1724718/projet-pontiac-usine-cogeneration-scierie-energie-davidson-crise-forestiere

October 19, 2021: The relaunch of the Davidson industrial site: company still seeking supply guarantee - https://chipfm.com/The-relaunch-of-the-Davidson-industrial-site-company-still-seeking-supply?lang=en

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