Canada: McInnis seeks tax agreement for port facility

Canada: McInnis seeks tax agreement for port facility
04 September 2015

McInnis Cement wants a tax stabilisation agreement for a US$40m distribution centre to be built at the Port of Providence.

The City Council will consider a "bifurcated" tax stabilisation agreement for McInnis USA Inc, an offshoot of McInnis Cement headquartered in the Canadian Maritime province of New Brunswick, according to City Council President Luis Aponte. The cement company wants to divide a 12-year agreement into two parts - one pertaining to the real estate it wants to buy in the port, and the other relating to the "tangible" equipment, such as trucks, that it will use to distribute cement.

If the project moves forward, cement will arrive at the McInnis facility by ship and be transported around the region by truck and by rail, Mr Aponte said. The distribution centre will serve as the company's New England hub. Up to 40 people may be employed at the McInnis facility.

While the tax stabilisation agreement, as proposed, would be for 12 years, he noted the city has the leeway to extend the term to 20 years. Mr Aponte said he expects the council to refer the McInnis proposal to its finance committee for review.

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Tagged Under: Canada McInnis Cement