Kal Tire says it’s moving ahead with plans to build a multi-million dollar distribution facilty near Regina after the province intervened in a dispute over the proposal.

The company had threatened to move the proposed tire retreading plant and warehouse to Manitoba as the city and the Rural Municipality of Sherwood squabbled over how the land should be developed.

The RM supported Kal Tire’s proposal but the city was opposed because it planned to eventually expand into the area with new neighbourhoods.

However, in a news release Thursday, the company announced it will build the distribution facility near the Global Transportation Hub.

“We would like to express our appreciation for the cooperation of the Province of Saskatchewan, the City of Regina and the RM of Sherwood for coming together so quickly and supporting this important project,” John Mullin, Kal Tire’s senior vice president purchasing and marketing, said in the release.

“They listened and understood our constraints and were able to make a decision in time for us to meet our deadline and begin construction in the coming months.”

Kal Tire estimates the new facility will employ close to 100 people, including 10 who will move from the company’s existing Regina warehouse.

“Kal Tire’s commitment to Saskatchewan is for the long-term, both through our store network and this new distribution facility,” Mullin said.

“We are happy to be in a position to move forward and expand our footprint in the province.”

The facility will be built in phases over a five-year period at an estimated cost of $25 million to $30 million.