Winnipeg committee votes to cancel Terracon joint venture deal

A joint venture between the City of Winnipeg and a local developer for some industrial park land in St. Boniface will likely not go ahead, but the councillor for the area says the proposal is worth saving.

The city's property and planning committee voted on Monday to rescind the deal with Terracon Developments to develop 237 acres of land off Plessis Road.

The joint venture was an effort by the city to compete with rural municipalities in providing industrial park development opportunities.

Council approved the venture in 2013, but negotiations between city officials and Terracon then reached a stalemate.

According to city staff, Terracon needed provincial education taxes waived on the property in order to make the deal work.

Chief administrative officer Doug McNeil said the city would not and cannot afford to subsidize Terracon's portion of taxes levied by another level of government.

"Why would the city pay provincial education taxes? That would set a new precedent," McNeil told reporters.

"To put this on the backs of taxpayers at this time just doesn't seem right," he added.

The committee's decision to cancel the agreement needs a final vote by council as a whole.

City moving 'too fast,' says Wyatt

The lone dissenting vote on Monday came from Transcona Coun. Russ Wyatt, who said the city is moving "too fast" to get out of the deal.

Rescinding the agreement may threaten plans for a Parmalat dairy processing plant in the area, said Wyatt, who urged the city to find a way to make the joint venture with Terracon happen.

"I'd like to think between now and the council meeting next week, there's a chance to get this back on track," Wyatt told reporters.

McNeil said he doesn't believe Terracon will file a legal case against the city for rescinding the agreement.

When asked how much the city has spent on working on the joint venture so far, McNeil said it would likely be in the "tens of thousands of dollars."