The City of Yorkton has extended a tax relief package arranged with Louis Dreyfus Canada Ltd. (LDCL) for the canola crushing plant constructed in 2009, to the new corporate ownership LDM Yorkton Processing GP.
The incentive package was offered to LDCL following meetings and discussions which took place in 2006, explained Lonnie Kaal, Director of Finance with the City.
The incentive package includes;
* A five-year 100 per cent tax abatement/exemption, (including municipal and education property tax).
* Postpone the development acreage levy on 122.33 acres until such time as a future development is contemplated.
* Phase-in the development acreage levy on 93.75 acres.
* Separate water and sewer consumption charges in conjunction with industrial rates.
* Rebate the 10 per cent SaskPower surcharge.
In bringing the issue of transferring the package to the new corporate owners before Council Kaal said the only issue was when the five-year tax holiday commenced, noting the property had some work in 2008, but the plant came on line in 2009.
In making a motion to transfer the agreement to the plant's new corporate owners, Councillor Chris Wyatt included having the abatement starting in 2009, meaning the City will realize no property tax dollars from the property until 2014.
"I think it's the least we can do," said Wyatt, who said negotiations with the company went so smoothly.
