During a recent city council meeting in St. Helens, discussions centered around the proposed sale of the Arcadia Paper Mills LLC, highlighting critical issues related to environmental remediation, water rights, and financing arrangements.

Council members expressed concerns regarding the Department of Environmental Quality's (DEQ) involvement in the site, particularly the need for a face-to-face meeting between DEQ and the prospective buyer to ensure compliance with remediation procedures. Questions were raised about the extent of water rights associated with the property and whether there is a formal agreement regarding the use of the city’s sewer lagoon, which could impact the sale.

Citizen Steven Tosky voiced his support for the project, emphasizing the importance of transparency in the transaction. He noted that the initial terms of the sale appear fair, with Arcadia making a significant down payment and the city retaining a note at a competitive interest rate. Tosky urged the council to finalize a separate water supply agreement, allowing Arcadia to utilize up to 20 million gallons of water per day for fire suppression and processing, while ensuring that the city retains ownership of its water rights.

Tosky also recommended that the city engage a water law specialist to navigate the complexities of the water supply agreement, given its significance to the transaction. He advised against including a prepayment penalty in the financing terms, suggesting that flexibility could benefit both the city and Arcadia in the long run.

The meeting underscored the importance of addressing environmental concerns and ensuring clear agreements as the city moves forward with the sale, which is seen as a potential boon for the local economy. The council's commitment to thorough due diligence will be crucial in fostering a successful partnership with Arcadia Paper Mills LLC.