Sow Kill Plant Set To Receive Five Year Tax Abatement

By Robert Thomas

In a unanimous decision Executive Committee voted to grant Donald's Fine Foods a five year tax abatement for the sow processing plant now under construction.

The former XL Beef plant is presently under renovation and being converted into a sow processing facility.

The former XL Beef plant just prior to Donald's Fine Foods commencing converting the plant into a sow processing facility - MJ Independent photo

Although no final details and the amount of property tax dollars the City will forego Executive Committee voted for the proposed tax abatement to commence the January 1st immediately after the plant's opening.

The property taxes will have in a phase in period as well as the opportunity for the pork processor to receive further incentives when more jobs are created.

The agreement is subject to annual approval by the Province for the education portion of the taxes.

In order to keep the tax abatement the plant must maintain 60 full-time jobs annually.

The full details of what the tax abatement entails were not available as the media was not expected to wait until after Executive Committee's in-camera meeting which discussed the issued ended.

The vote and discussion was not televised and was for the benefit of the media which decided to stick around.

“This a business in our city which has grown exponentially. They have invested millions and millions of dollars onto this. And this is just the first phase,” Councillor Crystal Froese said.

“This is good for our community we are becoming the agricultural centre of our province,” Councillor Froese said.

Councillor Jamie Logan said he supported the motion as it was “a tremendous benefit to (the city)…obviously the benefit is going to be enormous.”

“This company has been a tremendous corporate partner within the city of Moose Jaw for several years and has intentions to continue to do so,” Councillor Logan said.

Speaking to the media afterwards city manager Jim Puffalt said Donald’s Fine Foods will get “zero taxes for five years. The same thing Brandt (Industries) got.”

Brandt is presently converting the former Phillips Cable plant into a trailer manufacturing facility.

Puffalt said the City is excited to see the sow facility up and running as longer term it will create 400 jobs.

Initially the plant is set to employ 100 people with expansion to 400 employees dependent on the economy and market conditions, he said.

Full details of proposed tax abatement are expected to be released in the coming days.

The proposed tax abatement is expected to be officially approved at Council's next meeting.