You wouldn't typically associate whiskey with the City of Moose Jaw or India, but a new proposal could change all of that. City Council has approved a three year, 100% tax exception for a new distillery that is working to set up their operation on the East Side of Moose Jaw

Imperial Distillery is made up of investors from India and has been in talks with City officials since April 2018. The group has secured two buildings on the 1100 block of Ominca East that will be retrofitted for use as a distillery. While they plan to start operation later this year, due to the time needed to age the product the group has asked for the tax break until they can sell a product.

"It takes three years to age this type of whiskey," said Mayor Fraser Tolmie during a council meeting Monday night. "I think the exemption, even though it's out of our normal requirements and policy, their profits and income wouldn't be right away and we want to allow for that and create an economic environment to provide for that."

And it's that reasoning that had Councillor Scott McMann oppose the tax break saying there is already a generous incentive in place for new businesses looking to establish themselves in our community.

"The good thing about our current program is that it rewards capital investment and job creation and waves additional taxes that might be levied from that capital investment," explained McMann. "This proposal does not do that. We're just giving them three years of tax abatement. We're hoping that they are going to invest the money but we're not insisting on it and we don't know that the jobs are going to be created."

The new venture is expected to create up to 15 positions and will see over $3 million invested in the community in the immediate future. The way the motion is worded, the tax break wouldn't start until a product is actually being made so the business would pay tax while any renovations are happening. The facility was anticipated to be larger but provincial restrictions on the quantity of alcohol production have caused the project to be slightly smaller.

Councillor Brian Swanson was also against the idea saying it makes no sense to remove a property from the tax roll.

"We will give a tax exemption from any commercial property that gets built but the difference is that we are giving a tax exemption to existing property that has been paying taxes, in the instance of these buildings, been paying taxes probably for 40 years."

Mayor Tolmie was quick to respond by saying that having a property on the tax roll is one thing but having jobs in that building is more important in the long run.

"This is taking a property that's empty right now, there's no one working in that building, and it's creating jobs and it's creating investment!"

"Respect to the businesses that are holding the line right now, I do respect that, but I think their businesses prosper when other businesses come into the community," added Tolmie.

The group of investors had reportedly started their search for a location out in British Columbia and then turned their focus to the prairies when the grains the need are grown. They looked at Saskatoon and Regina before meeting with officials from Moose Jaw who sold the company on the Friendly City.

Tolmie believes the group is very anxious to get going on the renovations to their new facility this year, saying there is extensive work that needs to be done before any whiskey is actually produced followed by the three-year ageing process before sales can begin.