City reaches deal to buy closed mill

ERIE, Pa. (AP) -- City officials have put together a deal to buy a former International Paper mill for as little as $2.2 million in cash -- less than one-third the company's original asking price.
The deal, which needs approval from Erie City Council, tries to use about $4.5 million the paper maker owes the city for sewer repairs as leverage to buy the 213-acre site along Lake Erie.
Under the deal, the city would pay about half of the debt in return for the 104-year-old paper mill that has been an icon of Erie's industry, said city Councilman Ian Murray.
Mayor Rick Filippi, who has wanted the city to buy the former mill since it shut down a year ago, said the city has reached a tentative deal with Stamford, Conn.-based International Paper, but declined to discuss details.
Officials with International Paper did not return phone calls. International Paper purchased the former Hammermill Paper Co. mill in 1986. In May, it closed down the 100-year-old mill, eliminating 775 jobs.