City council expects the under-construction sow processing plant to support many full-time jobs once it’s operational and is offering economic incentives to support the business’ future success.
During its Feb. 27 executive committee meeting, council unanimously approved a recommendation to authorize the mayor and city clerk to sign an agreement with property owner Donald’s Fine Foods for a five-year, 100-per-cent tax exemption to commence the following Jan. 1 after the business — in the former XL Beef Plant — opens.
This deal would be subject to the provincial government annually exempting the company from paying the education portion of its property taxes. Moreover, Donald’s Fine Foods — the parent company of North 49 Foods, which will operate the plant — would have to commit to providing 60 full-time jobs annually.
Council also agreed to adjust the tax phase-in policy to include the jobs clause, the agreed upon tax reduction — as long as the company’s taxes remain arrears-free — and further tax incentive changes.
This recommendation —and the two below — will become official once council accepts it during the March 13 meeting.
In a previous interview, Donald’s Fine Foods suggested the sow processing plant could open sometime this year.
“This is a business in our city that has grown exponentially. It has taken an empty building and invested millions and millions of dollars into this,” said Coun. Crystal Froese. “And this is just the first phase of this. They’ve purchased additional land in order to expand.
“This is ideal for our city. We are becoming the agricultural centre hub in our province, so this is just a way to ensure we stay competitive (because) it’s competitive out there,” she continued.
Froese added that the main idea is to bring more people here and offer more jobs and better quality of life.
This recommendation offers a tremendous tax-break benefit to the company, while the city will also experience plenty of economic spinoffs, said Coun. Jamey Logan. Donald’s Fine Foods — which owns Thunder Creek Pork Plant — has been a great community partner and will continue to be so.
This tax exemption is similar to what city hall offered Brandt Industries for its new trailer manufacturing plant at 76 Lancaster Road, city manager Jim Puffalt said. City hall is excited to see the jobs coming with both new businesses since about 400 total jobs are expected.
“They (Donald’s Fine Foods) have bought about 100 acres around there. I think the sky’s the limit with them. They are very committed to Moose Jaw,” he continued. “When we look at economic development and growth, 75 (per cent) to 80 per cent of our growth comes from companies that already have a commitment to the city.
“We’ve been working with them since 2018 about buying that plant and expanding it … . It’s a great thing for the city.”
SaskPower exemption
A second recommendation council approved was to waive property tax penalties that city hall had applied to the land where SaskPower is building the Great Plains Power Station, backdated to June 17, 2020.
“It’s the same (issue) we had a couple meetings ago. Power plants don’t pay any grant-in-lieu or property taxes, so they (SaskPower) found another area of land that is now owned by them, so we shouldn’t have issued it in the first place,” said Puffalt.
Brandt Industries
A third recommendation council approved was to sell a portion of the city’s utility parcel near 76 Lancaster Road so Brandt Industries could expand its business.
Council authorized city administration to close a portion of a utility strip, convert it into a surface parcel, and then subdivide the land for purchase. Once the subdivision and consolidation are completed, city hall can sell the parcel for $15,000.
The next regular council meeting is Monday, March 13.
