A major setback for Dryden.
The City has failed in its first attempt to overturn the property assessment of the Domtar Mill.
Mayor Craig Nuttall says they aren't giving up the fight and plan to go to the Ontario Divisional court to appeal.
The city will be joined by Espanola, which is also facing a similar situation.
Nuttall says the City can't afford to repay Domtar 5.4-million dollars and notes he wants to wait and see what happens with the appeal.