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Council approves three-year tax exemption for new business

The City of Moose Jaw will soon be home to a fine scotch whiskey distillery
The City of Moose Jaw will soon be home to a fine scotch whiskey distillery after council voted for a three-year tax exemption toward the construction of a new business owned by India-based Imperial Distillery.

The distillery will be located on properties at 1121 and 1127 Ominica Street East and is expected to see $3 million in investment and retrofitting, a total of 15 new jobs and new property taxes once the three-year exemption has passed, in addition to taxes that will be paid through employee housing ownership.

Interestingly enough, the group has been working its way west looking for a positive situation in which to build their business and have contacts in Saskatoon, while also considering building in Regina.

“We caught wind of this and have been very encouraging to them when it comes to conversations with the City of Moose Jaw,” said Mayor Fraser Tolmie. “It's an opportunity to build bridges to India and to other southeast Asian partners... This is another win for the city of Moose Jaw in our opinion.”

Imperial expects to be up and running in 2019, with their product reaching market three years after they begin operations – the kind of scotch being produced requires at least three years of aging, hence the delay.

“Even if it's outside of our normal policy, (the exemption) carries an understanding that their profits and income wouldn't be right away, so we want to provide an economic environment to provide for that,” Tolmie said.

Coun. Scott McMann had a different view, pointing to the current tax incentive policy as more than enough for any new business opening in the city,

“The good thing about the current program is it rewards capital investment and job creation and waves additional taxes that might be levied from that capital investment,” McMann said. “This doesn't do that, this is just a three-year tax abatement and we're hoping they will invest the money even if we're not insisting on it. We don't know that the jobs are going to be created.”

While all for new business, the slippery slope was more of a concern for McMann.

“It's as if the city is investing in this property and I don't know how we could say no to any future requests,” he said. “We have a program that's in place, and yeah I'd like to see a fine scotch generated in the city, but it doesn't have to be on taxpayers’ dollars. So, I really have a concern that we're going down a path that we shouldn't be going.”

That didn't fit with what Tolmie looks at as an outstanding opportunity to grow business in the city, to the point that such major tax breaks come with the territory.

“I think this is a significant change in the way we've done business before because we haven't seen growth,” he said. “When I go around and visit businesses, they want to see more businesses come because they see the potential for growth and good paying jobs. They want to see businesses that have a tourism component like this, where people would be coming to the city of Moose Jaw for scotch tasting... we've seen very little growth, and this is taking a property that's empty right now and creating jobs and creating investment.”

Coun. Crystal Froese felt much the same way, especially when it comes to attracting new businesses to what is essentially a stagnant situation.

“This city has been in rut for a long time,” she said matter-of-factly. “We haven't seen growth, we haven't seen population change and we have an opportunity here... and I'm pretty sure Al Capone would be happy with it as well. So, I completely support this and I think our citizens will support this as well.”

Mayor Tolmie called for a recorded vote, and the motion passed 5-2, with Coun. Brian Swanson and McMann voting against.
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