Chillicothe — An informal agreement on the Chillicothe paper mill between the owner and the state’s economic development corporation was released on social media recently. It sets five “preliminary terms” before the revised shutdown date.
The Memorandum of Agreement between mill operator Pixelle (based in Pennsylvania, and owned by H.I.G. Capital of Miami, Florida) and JobsOhio was posted by Natalie Fahmy on X / Twitter recently.
An outline of the five terms:
- The property will be “contributed” for $1 for the purpose of redeveloping the land.
- Pixelle is responsible for environmental remediation, demolition, and obligations to unions.
- Pixelle will issue a WARN Notice by June 10th, and will fulfill its obligations in the following 60-day period.
- Pixelle will retain proceeds from the sale of any equipment on the site.
- All proceeds from the sale of the property will be for the benefit of former employees and the Chillicothe community.
“The MOU signed between JobsOhio and HIG/Pixelle was an important step in assuring that the local community has a voice in redevelopment of the paper mill site,” stated Tammy Eallonardo, Director of Greater Chillicothe & Ross County Development. “It puts us in control of the site – rather than an outsider who doesn’t know Ross County or its people.”
Eallonardo, as head of GCRCD, is a member of the ‘paper mill response team’ that has been discussing the situation weekly since the mid-April surprise announcement of the mill’s closure.
A “Memorandum of Agreement” or MOU is is “a formal, yet non-binding agreement that outlines the present intentions, roles, and objectives of the parties involved in a collaboration. It is not legally enforceable like a contract.” (Definition from the Georgia Institute of Technology).
A “WARN Act Notice” is a legally required notification for when union labor may start to be laid off, filed with the state.
The pertinent text of the agreement (see an image of the MOU below):
This Memorandum of Understanding outlines the preliminary terms relating to the sale and redevelopment of the Chillicothe Paper Mill and reflects the mutual understanding of Pixelle Specialty Solutions, JobsOhio, and certain Federal and State governmental officials.* 1) The site of the Chillicothe Paper Mill will be contributed to an entity designated by JobsOhio (or another governmental body) for $1.00 for the purpose of redeveloping the land for future use. 2) Pixelle will be responsible for (i) any legally required environmental remediation required at the site (to maintain its use as an industrial facility), (i) the demolition of the plant at the site (with a preference to use an Ohio-based contractor), and (ili) the fulfillment of all obligations under the contracts with its unions. 3) Pixelle will issue a WARN Act Notice no later than June 10, 2025, and will fulfill its obligations during the related 60-day period. 4) Pixelle will retain the proceeds from the sale of any equipment on the site to partially defray closure costs. Local businesses will be prioritized in the disposition of any assets. 5) All proceeds from the sale of the property will be used by JobsOhio and the State of Ohio for the benefit of the former employees of the Paper Mill and the greater Chillicothe community, to include hosting job fairs, transitional and skills training, and other services for former Pixelle employees. *This MOU is a non-binding indication of present intentions and assumes that a third-party buyer for the existing plant is not identified under reasonable terms.
See other significant stories on the issue on the Scioto Post:
- Chillicothe Paper Mill Sets Final Closure Date for August 10, 2025
- Chillicothe Paper Mill Closure Response Team Continues Work
- “Scioto Valley Forward” to Assist Workforce in Face of Chillicothe Paper Mill Closure
- Ross County Commissioners Hosting Chillicothe Paper Mill Response Team
The image of the MOU posted on X:
