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John Thomson  

Here and there

The Board of Directors of Boundary Sawmill Inc. (BSI) announced that the deal for the purchase of the former Pope and Talbot mill located at Midway, BC has been finalized.

Doug McMynn, President of BSI said, “It’s been a hectic week to finish off the negotiations however we are happy and relieved it’s over and that the deal has been completed.”

The deal includes: a 10 year lease with option to renew with Vaagen Fibre Canada ULC, an affiliate of Colville based Vaagen Brothers Lumber, Inc. to operate the mill and purchase of the mill from Fox Forest Products Inc., of Montana (who purchased the mill from a bankrupt Pope and Talbot) as well as payment of back taxes owing to the Village.

Randy Kappes, Mayor of the Village of Midway, recognizes the economic impact the purchase and subsequent start-up of the mill will have on the community. “For the last three years the mill property has sat idle and we all wondered what we could do to get it going again. With the help of Stephen Hill, the federal conservative candidate for the BC Southern Interior, the Village of Midway is now an owner as will be numerous residents of Midway, Greenwood, and Rock Creek who have or are still in the process of purchasing shares in the mill.”

Hill, along with McMynn, Kappes and a team of lawyers hammered out a deal so individual residents could purchase shares in Boundary Sawmill Inc. and receive a tax credit. “All Class A non-voting shares purchased by BC residents on or before February 28, 2011 are eligible for the Eligible Business Corporation (EBC)BC tax credit from the Province of BC,” Hill said. He continued, “Although we’ve closed the deal to buy the mill we’d still like another $3 or $4 million in shares to be purchased so we can move ahead with all our plans including the purchase of fibre.”

In return for a $10,000 investment for 10,000 shares, local and other BC residents who purchase shares in the mill are eligible for a $3,000 refundable tax credit. The investment is also RRSP eligible. “This is such a great opportunity for the residents of the Boundary area, and indeed all of BC, to participate in their economic future,” said Kappes.

Vaagen anticipates hiring up to 35 workers for the mill. “In a village of just over 600 people that’s a huge economic impact,” Kappes said.

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That company from the U.S. that works the phones in this country without being challenged now has their credit card scheme on the lines again.

The caller says in a recorded message, “Calling about your credit card account, and no, there is no problems. But if you would like to get a lower interest rate, say 6 per cent, press 9. Our representative is waiting and can discuss your account with you.”

Don’t do it! Don’t press nine and don’t, for goodness sakes, give them any information.

In 2009 the most recent year stats are available for Canada, money lost by Canadians on the Internet, telephone, in person, mail and the media amounted to $27 million. That really only takes into account those that reported their loses, so many do not tell anyone, including family.

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We all seem to know someone who has purchased a vacation home south of the border. Most of the buyers from here are buying in Arizona. The ReMax agency believes the strong Canadian dollar will be bringing more customers to them. Of the 6,598 homes sold in Greater Phoenix last October, 41 percent sold under $100,000 and 48 percent in the $100,000 to $300,000 range.

The other state Canadians are attracted to is Florida and twenty-one per cent of the current buyers are foreign and thirty-six percent of those are Canadian followed by the British.

One has to be very careful when buying in the U.S. and needs local advice
making the right deal. With our weather in this country it is no wonder Canadians are interested in looking at the possibilities of owning property south of the border.


More John Thomson articles

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About the Author

John Thomson is the Okanagan's pre-eminent business columnist writing his column, Rumours and Things, for over 24 years. Plugged in to the valley's who's who, John keeps his readers coming back for more with his straight talk and optimistic perspective on where we are headed next.

When John is not writing his column, he runs a sixteen year old think tank called the Executive Roundtable and holds his popular "Thomson Presents" quarterly business speaker seminars.

Have a comment, question, or tip for John? 

E-mail John at
[email protected]
or send him a fax at 250-764-8255.

 



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The views expressed are strictly those of the author and not necessarily those of Castanet. Castanet does not warrant the contents.

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