Windsor

'This is a win': Council approves tax break for Windsor manufacturing plant

City council approved a tax break for U.S. manufacturing company Flex-N-Gate Monday night which would refund the company 100 per cent of the tax increase resulting from the proposed development of their facility located at 309 Ellis St. E.

Flex-N-Gate on Ellis Street E. plans to add 112 more jobs with proposed expansion

Ward 3 Councillor Rino Bortolin is pleased that council approved a tax break for U.S. manufacturing company Flex-N-Gate Monday night. (Tahmina Aziz/CBC)

City council approved a tax break for American manufacturing company Flex-N-Gate Monday night which would refund the company 100 per cent of the tax increase resulting from the proposed development of their facility located at 309 Ellis St. E.

Council approved the grant through the Economic Revitalization Community Improvement Plan (CIP), which is worth an estimated $535,580 over the program's 10-year lifespan.

The proposed development would retain 580 current jobs at the facility and add 112 new jobs.

Ward 3 Coun. Rino Bortolin called this a win.

"It's not really a huge chunk of change, but 112 jobs created on top of the jobs they already have is a really important statistic for us in the community," said Bortolin. 

"It's a viable entity right in the core of the city ... So, we want to keep seeing that. We don't want to see empty buildings, we don't want to see brownfield sites sit empty for years and years."

$3.2 million investment

The plant — which is currently more than 250,000 square feet — proposes to add 12,500 square feet of manufacturing space for new equipment and renovate existing parts of the building to create a cafeteria and new locker rooms. 

The grant will help offset the company's $3.2 million investment.

"This is actually a really great program and it's really worked," Bortolin said, adding that people have compared the tax break to corporate handouts.

... We don't want to see empty buildings ...- Rino Bortolin, Windsor Ward 3 Councillor

Nonetheless, Borotlin said companies don't receive the grant unless they prove they've created new jobs and have undergone construction.

The CIP — which provides financial incentives to encourage new investment in the city — was introduced in 2011. Council has approved 35 applications made under the CIP to date, according to city administration.