Manitoba

City strikes quick deal to keep Parmalat milk plant in Winnipeg

Winnipeg city council approved the sale of city-owned land in the St. Boniface Industrial Park to Parmalat Canada Inc., Wednesday morning, for the expansion of a new milk processing plant.

Mayor Brian Bowman pleased with deal reached between city, province, Parmalat

EPC has approved the sale of city-owned land in the St. Boniface Industrial Park to Parmalat Canada Inc. (CBC News)

Winnipeg city council approved the sale of city-owned land in the St. Boniface Industrial Park to Parmalat Canada Inc., Wednesday morning, for the expansion of a new milk processing plant.

The deal was approved early Wednesday at a special meeting of the executive policy committee then given the OK by council shortly afterwards, during the last council meeting before summer break.

The plant at the new site will replace the current aging facility in St. Boniface. There city said the deal was urgent because there is a time constraint with Parmalat under a time crunch to start construction.

"They have a very tight schedule and we're rushing this through, in a sense, because they need to be in the ground by August this year," said the city CAO Doug McNeil.

The deal requires the city and province to pay $8.2 million to service the land. With $2.59 million in revenue from the sale of the land, the net cost is $5.61 million. 
The proposal says the land highlighted in red, along Elizabeth Road in St. Boniface's industrial park would be sold to Parmalat for $2.59 million. (CBC)

The city says it will recoup the payment over 18 years through property and business taxes generated by the new plant.

"I am very pleased that the proposed agreement with Parmalat sets their business up for success right here in Winnipeg," said Mayor Brian Bowman.

"Parmalat will lead development in the industrial park as the catalyst to attract further industrial business to set up as we partner to service the area."

Comments

To encourage thoughtful and respectful conversations, first and last names will appear with each submission to CBC/Radio-Canada's online communities (except in children and youth-oriented communities). Pseudonyms will no longer be permitted.

By submitting a comment, you accept that CBC has the right to reproduce and publish that comment in whole or in part, in any manner CBC chooses. Please note that CBC does not endorse the opinions expressed in comments. Comments on this story are moderated according to our Submission Guidelines. Comments are welcome while open. We reserve the right to close comments at any time.