news-Civic Centre

City council will be asked to commit further funds to a Toronto based law firm representing the city’s interests during court restructuring proceedings for Essar Steel Algoma.
Council will be asked at tonight’s meeting to commit a further amount of up to 100-thousand dollars with city staff recommending that it be taken from a Contingency Reserve.
The city is being represented by a restructuring lawyer and a report to council explains that it has reached a critical juncture as Reserve balances have maintained cash flow and City operations for the last 19-months and recent developments do not lend to an imminent exit from the CCAA proceedings.
The City is owed a total of 26-million dollars by Essar Steel Algoma in unpaid taxes and is facing some severe cost saving adjustments if taxes aren’t paid.
The City has already committed a total of 275-thousand dollars for legal representation and a report to council states a majority of that amount has been used.