A city committee approved $200,000 more for the servicing of a new Parmalat milk-processing plant, but stopped short of committing to cover new costs down the road.

The city's property and development committee voted Tuesday to spend $303,000 toward an $800,000-natural gas line for the new Parmalat plant. That's up from $150,000 previously committed. Along with some electrical upgrades, the city will now pay another $200,000, if council agrees.

The cost hike is due to the increased price of a natural gas line, for which Manitoba Hydro (owner of Centra Gas) would contribute about $500,000.

The city was also asked to cover up to $200,000 more in 2018, if construction costs rise or Hydro revenues proved lower than expected. But the committee denied that request, stating any additional funds should require additional council approval.

The overall $8.2-million deal requires Parmalat to pay $2.6 million for the land and $1.5 million for servicing, while the city invests $2.1 million, and the province reimburses the city for another $2 million over 18 years.

The plant is now under construction on 15 acres of land south of St. Boniface Industrial Park and is expected to begin production in January 2017.