Local officials feel good about Pactiv mill parcel sale in Canton
Superstructures on the Pactiv Evergreen mill site in Canton may not be around much longer.
Cory Vaillancourt photo
Apprehension over the fate of a huge industrial parcel in the heart of Canton is now transitioning to cautious optimism.
A press release issued Jan. 10 by the St. Louis-based developer who’s been pursuing the 185-acre plot upon which the shuttered Pactiv Evergreen paper mill in Canton has sat dormant since last May says he’s successfully acquired the site.
“Our vision is to breathe new life into this dormant site, transforming it into a hub of industrial, commercial and residential activity that will benefit the town of Canton and strengthen commerce in the area,” said Eric Spirtas, president and director of communications for Two Banks Development and Spirtas Worldwide. “We are committed to collaborating with local, regional and national experts to develop a master plan that reflects the best ideas and concepts for sustainable growth.”
Pactiv shocked Western North Carolina in March 2023, when the company announced that the century-old mill would be shut down in a matter of months, leaving nearly a thousand workers unemployed. Since then, developers have shown plenty of interest in the 185-acre parcel but made little progress in coming to terms with Pactiv until now.
Spirtas was slated to close a deal with Pactiv on Oct. 1, 2024; however, Hurricane Helene caused floodwaters from the Pigeon River to inundate the site on Sept. 27. Spirtas declined to close on that date, saying he wanted the opportunity to inspect the site for damage but Pactiv wouldn’t let him. Pactiv subsequently filed suit against Spirtas. That suit now appears to be water under the bridge; however, Pactiv is still embroiled in a number of other legal issues related to its ownership of the site, including a property tax appeal and a suit alleging the company violated the terms of a $12 million economic development grant from 2014.
Those suits won’t likely affect Spirtas, who’s been passionate about acquiring the site and putting it back into productive use.
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His redevelopment plan aims to boost the local economy by revitalizing the site into a mixed-use hub. Key initiatives include attracting manufacturing businesses, developing retail or office spaces and constricting badly needed housing.
Last July, the town rezoned the parcel, splitting the western half into light industrial and the eastern half into general business. Formerly, the entire site was designated as heavy industry, but the rezone seems to align with some, if not all, of Spirtas’ stated goals. Plans include public forums and collaboration to honor the site's legacy while fostering sustainable growth.
Perhaps the biggest implication of the sale is the fate of the mill’s wastewater treatment facility — a critical piece of infrastructure that has treated the town’s wastewater for decades. The treatment agreement was slated to end in March. The town has the funds to construct a new site but doesn’t have a location. Now, there’s room for negotiation over the continuing use of the facility by Canton.
"We're going to make sure it's town and county first in those types of decisions," Spirtas told The Smoky Mountain News last May.
Then-Gov. Roy Cooper took an active interest in the situation in Canton, along with then-Attorney General Josh Stein, who filed the economic development lawsuit against Pactiv. Now governor, Stein is hopeful the sale will bear fruit.
“This project has the opportunity to bring jobs and new growth," Stein told SMN. "I look forward to seeing what’s ahead for Canton.”
Stein's Press Secretary Olivia Weidie said that litigation against Pactiv continues alongside the NC Department of Justice. Nazneen Ahmed, communications director for Attorney General Jeff Jackson, confirmed that.
"The sale of the mill site in Canton does not affect Attorney General Jackson’s lawsuit against Pactiv to repay the state for the $12 million it owes for closing the mill," said Ahmed. "Our lawsuit continues on behalf of Canton’s residents and North Carolina taxpayers."
Legislative leaders see a tremendous upside to the deal.
“Closing down was a huge economic blow to Haywood County, and getting it back into use is going to be good for workers in the area as far as jobs go, and putting it back on the tax rolls for the town and the county will be too,” said Sen. Kevin Corbin (R-Franklin). “It’s been sitting silent for months now, and it will be good to see some activity out there.”
Corbin doesn’t technically represent the mill parcel — several Haywood precincts were shaved of the 50th Senate District during the last redraw, putting the site in the district of Sen. Ralph Hise (R-Mitchell) — but Corbin still effectively handles constituent concerns there.
Rep. Mark Pless (R-Haywood) represents the entirety of Haywood County.
“I think it’s great opportunity, especially for the town of Canton and Haywood County as far as tax revenue goes, but we really need the jobs, so I’m hopeful he’s going to do something that will bring some good paying jobs back to county,” Pless said.
Pless, like Corbin, has been instrumental in helping the town deal with the impact of the mill’s closure by securing millions in direct appropriations from the General Assembly.
David Francis, formerly in economic development with the county, now performs that function as the CEO and president of the Haywood County Chamber of Commerce. Few were as involved as Francis was with trying to hammer out details on the mill parcel’s future.
“I’ve been working with Spirtas for about a year now; I visited him in St. Louis after he announced the letter of intent back in May,” Francis said. “I spent a lot of hours with him, and since mid-December, it’s been a lot of work for him and his team to get to this point. We’re really proud that his happened and looking forward to these next few years for the makeover of Canton to bring back economic prosperity and take some worry off the town and county.”
Regarding wastewater treatment, Francis said it had of course been a topic since even before Hurricane Helene and that the parties involved are continuing to work out the details.
Kevin Ensley, chair of the Haywood Board of Commissioners, recalls the days when Champion paper, as it was known for decades, was a good neighbor and community member in Haywood County under the leadership of owner Reuben Robertson. It hasn’t been that way for a long time now, but Ensley is optimistic that there will be less frustration dealing with Spirtas than with Pactiv.
“I think that it’ll be good because we can actually talk to a person and get an answer,” Ensley said. “We’ve not been able to do that before. At least we’ve got someone who can make a decision and sign a document.”
From a county government perspective, the biggest impact of the mill’s closing was taxes; sales taxes from purchases made by the mill or by mill employees spending their paychecks locally and property taxes owed on the $19.7 million parcel, but especially business personal property taxes on items valued near $250 million, according to Haywood County Manager Bryant Morehead.
“I am thrilled about the successful sale of the Canton paper mill to Spirtas Worldwide,” Morehead said. “Over the past several months, I’ve had the privilege of getting to know Eric and learning about his vision to redevelop the site. His approach promises to rejuvenate our local economy while preserving Canton’s rich industrial heritage. Initially, when the mill’s closure was announced, I feared the site might remain shuttered, posing a long-term challenge for Haywood County. However, Spirtas’ commitment to growth and collaboration reassures us that this redevelopment will benefit all residents.”
Zeb Smathers, Canton’s mayor, said he’s pleased with the sale but that there was still much to be done.
“I have been and remain cautiously optimistic. I’ve had some amazing conversations with Eric. I think he fully knows our expectation that this mill site is not a project that should aim to be good, but rather great,” Smathers told The Smoky Mountain News Jan. 10. “The standard is that we look through the eyes of the millworkers and the community and we do something that honors their service and meets their expectations. This can and should be an economic furnace not for just us, but for the entire region when we need it the most.”
Although discussions about wastewater treatment are ongoing, Smathers has a high degree of confidence that the problem is solved, at least for now.
“There are many things that keep me up at night. Canton’s future. Housing for flood victims. Flood recovery. I am not losing sleep over future of wastewater treatment,” Smathers said. “I am extremely confident that come March the wastewater treatment needs of the town will be met with no interruptions.”
Smathers’ governing board, which has spent countless hours in closed-session discussion over the mill’s fate, largely shares his sentiments.
“We had a known with Pactiv Evergreen, and that known, we didn’t like,” said Alderman Ralph Hamlett. “Now we have a new player. I say I’m hopefully optimistic because there are still some unknowns there but I’m going to operate from a position of trust as a town official and do everything in my power to make sure that it works. Time will tell.”
On wastewater, Hamlett said he’s hopeful that Spirtas will be a good partner with the town and that the town would strive to be a good partner with him. The wastewater treatment facility is outdated, and something still needs to be done, Hamlett said, but he looks forward to the day that the town will control its own destiny with wastewater treatment.
Kristina Proctor, a Canton alderwoman, said she’s not personally met Spirtas, but she feels it’s important to ensure that citizens have input on what happens next. Spirtas’ assertion that he’d hold public meetings, forums and workshops to gather input and keep the community informed about progress and opportunities was welcome, she said.
“I think that shows somebody who sincerely wants to be a member of this community, who wants to listen to feedback and insight before major decisions for the property are made,” Proctor said. “I think it shows a good line of communication and good faith so we can build the relationship we need for success, long-term.”
Canton Mayor Pro Tem Gail Mull remains concerned about wastewater, the town's budget and the identity of the town itself — a milltown without a mill — but as the only board member who actually worked at the mill, she is looking forward to the change.
"It's a beginning, not an end," Mull said. "There's all sorts of possibilities out there, we just have to discover them. Our future certainly looks a lot brigther with Eric Spirtas that it did with Pactiv."
Alderman Tim Shepard echoed his colleagues in his assessment of what, exactly, this means for the town.
“I guess the best way to say it is cautiously optimistic. In previous communications we’ve had with Mr. Spirtas, he has conveyed the desire to be a good partner with the town to help folks in Canton, and I’m optimistic that will hopefully happen,” Shepard said. “There is a sense of relief that the interim period between the mill shutting down and us not knowing what was going to happen is closed, and I’m looking forward to the next chapter. At least now we’re moving forward and not in a holding pattern.”
The mill, established in 1908, played a significant role in the region for generations before its closure in June 2023.
Terms of the sale were not disclosed. Haywood County Recorder of Deeds Shari Rogers said no deeds for the sale had yet been recorded by her office.
