Windsor city council has formally agreed to waive the taxes for FedEx, the main tenant at a new cargo village to be constructed at Windsor International Airport.
Council expects the cargo hub to become a catalyst for other new investment.
Last month, the federal government announced almost $20 million in funding to build the the cargo hub and a border logistics institute.
The city's $2.5-million contribution includes a 10-year tax exemption for FedEx.
Coun. Bill Marra says the cargo village is good news:
"This is not an overnight panacea. Rather, it's long-term planning for long-term benefits that will accrue to this region for many decades if this is done right, planned right and executed right," Marra said. "In this case, you can't go wrong with the players involved, whether it be the federal government, the municipality, the University of Windsor and FedEx."
Mayor Eddie Francis says other investors are entitled to the same incentives as FedEx. He says he's already in discussions with another prospective tenant.
"This is how you diversify an economy," Francis said. "I do want to recognize the federal government for this level of investment. This was a significant investment."
City engineer Mario Sonego says design drawings are being developed.
"The idea is get everything tendered so that we know what the price is, so we know whether we are we within budget," Sonego said.
Construction work should begin some time next year, with the moving day for FedEx coming in July 2015.
A previous version of this story said FedEx would pay no rent. In fact, FedEx gets a tax exemption.Nov 19, 2013 1:14 PM ET