Halifax councillors on Tuesday approved a tax deal with Irving Shipbuilding that determines the company’s tax rate for at least the next 25 years.

The deal means the company will pay a base tax of $569,000, plus a one per cent annual increase.

On top of that, Irving will pay $1,000 for every full-time job over a baseline of 1,000 workers, up to a maximum of 2,000 workers — which could mean an extra $2 million paid to city coffers.

The deal comes with the option for two five-year renewals on top of the first 25 years

The agreement passed with 12 councillors voting in favour, and four opposed.

“This means that there's more money coming into the city, which allows us to continue to be vigilant on commercial taxes for small businesses,” Mayor Mike Savage said afterward.

Irving released a statement late Tuesday afternoon saying the agreement will see its projected property taxes double by 2020 and quadruple by 2024, compared to current levels.

One of Savage’s arguments in support of the taxation deal was that it would eliminate future legal battles over property assessment and taxation.

Irving is currently appealing the $1.6-million tax bill it paid for the 2014-2015 fiscal year.

“The city hasn't done well with our legal disputes over the last number of years,” Savage told reporters afterward.

Councillors were told there’s no way of knowing how much property tax Irving wouldpay over the same period of time without the agreement

“A single purpose facility like a shipyard does not frequently transfer on the open market and therefore it is very difficult to estimate ‘market value’ for property tax purposes,” Irving Shipbuilding said in a statement.

The deal garnered some criticism from councillors, and from other quarters.

“I don't like making decisions with my hands tied. I don't make decisions to avoid legal battles,” said Coun. Matt Whitman.

Kevin Lacey, regional director of the Canadian Taxpayers Federation, was also critical.

“There are lots of taxpayers in the city who are struggling under high taxes and high assessments, yet today the city only did a deal for one organization and that's for the big guy, the Irvings,” Lacey said.

With files from CTV Atlantic’s Rick Grant