UPDATE: Prince Rupert Port Authority pays city $2.1 million

The City of Prince Rupert has received $2.1 million from the Prince Rupert Port Authority.

The City of Prince Rupert has received $2.1 million from the Prince Rupert Port Authority.

The city announced the payment on Thursday afternoon, and said it is “the port’s partial payment towards their outstanding property taxes based on revised industrial property values”.

“The City of Prince Rupert has been discussing the appropriate level of property tax (paid by way of a payment in lieu of tax) with the Prince Rupert Port Authority for some time. The Prince Rupert Port Authority board of directors has directed a $2.1 million partial payment given the financial circumstances of the City of Prince Rupert,” read a statement from the city.

“The City of Prince Rupert has been facing financial hardship for a number of years, and has accepted this partial payment.”

Prince Rupert Port Authority manager of corporate communication Michael Gurney said the payment comes as discussions surrounding payments continue between the two organizations.

“The payment referenced in the city’s news release is part of a larger process in which the Prince Rupert Port Authority and the City of Prince Rupert are engaged around payment in lieu of taxes,” he said.

“This process is ongoing and this payment shows the port authority’s good faith in reaching a mutually beneficial conclusion to this process.”

The issue of port taxes and payment to the city have been a hot topic around the council chambers in both 2012 and earlier this year.

Look for more on this story as it becomes available.

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