The City of Orange is getting a promise from International Paper to invest $80 million at the containerboard mill for improvements and upgrades. In addition, the company is pledging to keep at least 300 employees. Those are among the terms of an economic development agreement for the city to annex the paper mill on Highway 87 North. The company will give the city a yearly payment instead of full taxes and the city will not keep the 1.5 percent sales tax on items sold by the company. The city will provide police and fire protect but not water and sewer service.
International Paper requested the annexation after paying almost $400,000 a year in sales taxes to the Orange County Emergency Services District No. 3, the Little Cypress Fire and Rescue Department. The district started collecting the sales tax in late 2010. The City of Orange had provided police and fire protection to the plant under an industrial district contract since 1968.
Joe Parkhurst, president of the emergency services district, pleaded one more time for the city to not annex the paper mill. He said the sales tax “doesn’t cost the company money. That affects the buyers.”
The emergency services district with the extra sales tax was able to hire certified firefighters with emergency medical training to be at the station 24 hours a day. Parkhurst said the department will have to rely on volunteers without the property and sales tax income from International Paper. He said about 5,000 to 6,000 people will be affected by the lack of emergency service in the district. “We’re probably going to have people die,” he said.
The Orange City Council voted unanimously to approve the annexation and the economic development contract.
-Margaret Toal, KOGT-
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