History of Castlegar: 1968 to Present

By 1970, the completion of the Columbia River Treaty dam marked the beginning of a recession and a sharp reduction in the growth of Castlegar. Population dropped from 3,440 in 1966, to 3,068 in 1971. The Kootenay Canal Diversion Project injected
some $75M into the region during the 1970's, but the Eaton's Mail Order store closed in 1976, millrate increases were announced and a housing expansion project was
cancelled. In 1978 the Castlegar-Salmo Highway opened and the expansion of the airport marked an increase in traffic. However, the return of the recession in the early
1980's affected the area much the same extent as other areas and other western countries. Castlegar languished in economic growth throughout the 1980's, with only
modest increases in population.

After a tumultuous period of dialogue between supporters of economic growth and those supporting conservation issues, the Celgar Pulp Company $700M mill expansion was permitted, and carried out between 1991 and 1993. The West Star Timber mill was purchased by Pope and Talbot of Midway in 1992 and began a modernization
program, commencing in 1993. Following the relocation out of the area of the Robson Ferry, efforts to restore another link across the Columbia River culminated in the
beginning of construction of the Robson Bridge in early 1993. During the early 1990's, Castlegar's economic future was looking brighter, with the addition of two small
mid-town shopping malls, expansion in trading areas and a downtown revitalization project underway.

By 1970, the completion of the Columbia River Treaty dam marked the beginning of a recession and a sharp reduction in the growth of Castlegar. Population dropped from 3,440 in 1966, to 3,068 in 1971. The Kootenay Canal Diversion Project injected some $75M into the region during the 1970's, but the Eaton's Mail Order store closed in 1976, mill rate increases were announced and a housing expansion project was cancelled. In 1978 the Castlegar-Salmo Highway opened and the expansion of the airport marked an increase in traffic. However, the return of the recession in the early 1980's affected the area much the same extent as other areas and other western countries. Castlegar languished in economic growth throughout the 1980's, with only modest increases in population.

Unfortunately the downturn in Lumber demand on the US side caused financial difficulties for Pope and Tabot. It ceased production in October 2007. In May of 2008 Interfor purchased Pope and Talbot assets in Castlegar but has no plans to reopen production.

Celgar might have suffered a similar fate but Mercer International came to its rescue and purchased it in 2005 after Celgar had gone into receivership. Mercer spent $28 Million to increase the pulp production capacity to approximately 480,000 ADMTs. Presently Mercer is installing a duel Steam Turbine, powered by excess heat from the pulp mill to sell power back to the BC power grid. The project mission is to meet all energy requirements in the mill allowing any excess electricity to be sold to power utilities, resulting in zero energy costs for Celgar and significant by-product electricity revenue.

On a more positive note the regional Canadian Tire increased their retail space by 30% last year. A new mall has been constructed on Columbia Ave at the main highway Interchange. The mall hosts a Shoppers Box store and a large Electronic Audio store