A tire company that was considering taking its plans for a new plant out of the province says it will stay in Saskatchewan after all, following moves by a provincial cabinet minister to smooth over a development spat involving the city of Regina.

Kal Tire was worried that its plan for a new building on the western edge of Regina was in jeopardy because the city was not keen to let zoning changes take place in the rural municipality of Sherwood. The city and the RM are working on new overall plans.

Currently, Regina has a say on zoning in the RM and is also involved in providing infrastructure, such as water and sewer service, to the area.

The issue came to a head when Regina's mayor, Michael Fougere, said he did not want to commit Regina to a new plan before the city was ready. That prompted a news release from the RM that accused Fougere of being anti-development.

It also made Kal Tire nervous about setting up in Saskatchewan.

Now, the provincial minister responsible for industrial development says he has spoken to Kal Tire officials and smoothed things over.

Bill Boyd told the provincial legislature Wednesday he is confident the plant, a distribution centre, will go ahead.

CBC News has also confirmed, with Kal Tire, that the project is a go.