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December 13, 2004
Toronto supports bringing Bombardier's C-Series Jet Program to Downsview through financial incentives
  
The Economic Development and Parks Committee today supported a bid to establish
the C-Series Jet final assembly program at Bombardier's de Havilland site in
Downsview by supporting the development of a financial incentives package to be
presented to Toronto City Council for its consideration. Councillor Maria
Augimeri, Chair of the Aerospace Action Partnership, made the motion to
Committee to enhance the site's international competitiveness as Bombardier
moves towards a decision on the site for its new jet program.

Bombardier's Downsview site is one of many international locations being
considered for this contract. Bringing the C-Series jet program to Toronto
would create 2,500 new direct jobs resulting in 50,000 person years of
employment over the 20-year program life. It would also generate an additional
7,500 jobs at the supplier level across the Toronto region and would place
Ontario at the forefront of the aerospace industry. The City of Toronto is
working with the Province to attract this new investment to the region.

"It is of the utmost importance that the City of Toronto formally express the
desire to be the host city for the new program," Mayor David Miller said. "We
need to demonstrate our support by confirming a willingness to assist using any
means within our jurisdiction to improve the cost competitiveness of the
Downsview site."

"Toronto needs to do more than just state its interest in working with the
Province and labour to bring new jobs here," Councillor Augimeri said. "Toronto
can actively support the Ontario bid by providing financial support to the
project without having to increase our tax burden."

The proposed Community Improvement Plan (CIP) for the Downsview employment area
would provide financial incentives for the revitalization and development of
new industrial/commercial facilities in the area, and is consistent with the
City's Official Plan. The CIP would consider using tax incremental equivalent
grants (TIEG) and waiving development related fees. The City has successfully
implemented and used a CIP, including tax grant mechanisms, in South Etobicoke
to encourage new industrial development.

If Toronto wins the bid to manufacture a new line of state-of-the-art jet
commercial aircraft, Bombardier will rebuild a significant proportion of its
facility, thereby increasing their property taxes. The City is proposing to
return a percentage of the new taxes to the property owner as a grant. By
encouraging investment in the industrial plant, the City will also improve its
financial status over the long-term. These measures will not affect the City's
current tax revenue nor will they have any negative budget implications in
2005.

The proposed development incentives approved today by the Economic Development
and Parks Committee send a strong signal to senior levels of government, as
well as to Bombardier, that the City of Toronto is prepared to do whatever it
can to remain competitive and encourage investment.

Media Contacts:
Councillor Maria Augimeri,
Chair, Aerospace Action Partnership,
416-392-4021

Economic Development,
Culture and Tourism Media Hotline,
416 560-8726



 

 

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