d) News Release regarding County's Response to City's Proposal for Boundary Adjustment

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County Response Page 2 Residential taxes for those residents taken into the boundaries of the City in the Town of LaSalle, Town of Tecumseh and Town of Lakeshore would increase by 12 to 26%; 53 to 71% and 51 to 69% respectively. Residents remaining within the boundaries of the Town of Lakeshore would experience tax increases of approximately 29%. Residential taxes in the remainder of the County would increase by various amounts ranging from 11 to 13 %. The non-residential tax implications of the City's proposal on businesses and industries is so significant that the survival of many businesses is questionable. Commercial taxes for those businesses taken into the boundaries of the City in the Town of LaSalle, Town of Tecumseh and Town of Lakeshore would increase by 108 to 133%; 182 to 216% and 179 to 213% respectively. Similarly, industrial taxes for those businesses taken into the boundaries of the City in the Town of LaSalle, Town of Tecumseh and Town of Lakeshore would increase by 67 to 94%; 127 to 163% and 125 to 160% respectively. An assessment of the effect of the projected tax increases on some of the major industries within each municipality concluded that within the annexation area, Hiram Walker and Magna would face property tax increases of $1.2 to $1.4 million, and $275,000 to $329,000 per annum respectively. Similarly, industries such as FTF Inc. (formerly Green Giant), Reko International and Centreline Holdings would experience annual tax increases of $125,000 to $220,000. Outside the area requested by the City, other industries such as Heinz and General Chemical would sustain annual increases of $45,000 to $90,000. Such significant tax increases will have a negative impact on the economic viability of the businesses and industries in the Essex/Windsor area. Taxation increases would also be experienced by the farming community. Given that the cost margins within the food industry have continued to be under significant pressure over the past decade, increases of this magnitude could also affect the viability of these companies and individual farm operations. Consequently, the adverse impacts of the City's proposal would also be felt within the local municipalities who would not lose land to the City. The County's response reinforces the benefits of the proposal put forward by the County of Essex in July of 1998. The 6,500 acres of land offered by the County of Essex in that proposal more than meets the City's needs, and is consistent with the continued sustainability of the County, its local municipalities and its businesses and industries. The Minister of Municipal Affairs has been encouraged by the County to fully reject the City's proposal, to advise the City of Windsor of the merits of the County's land offer and to take the steps necessary to implement the County's proposal. -30- For media inquiries, please contact: Warden Pat O'Neil, (519) 776-6441 Ext. 327 Brian Gregg, Chief Administrative Officer, (519) 776-6441 Ext. 325