Dexter's Dapco Industries approved for 12-year tax abatement by village council
The Dexter Village Council unanimously approved a 12-year tax abatement for Dapco Industries, a longtime business in the village’s industrial park Monday night, which is expected to pave the way for 10 new jobs in the village.
Ron Tupper, president of the company, said the abatement was important to Dapco to continue to create new business and it “will help the company achieve those goals.”
Located at 2500 Bishop Circle, the company is a leading supplier of components for the small engine industry and was founded in 1943.
The company requested an abatement for about $1.286 million in new personal property and about $879,000 in real property improvements for an additional 8,500 square feet in factory space that will house screw machines.
“The value of the abatement is approximately $7,300 in village taxes and about $23,000 in taxes from other entities,” including Scio Township, the Dexter Public Library and Dexter Community Schools, according to a memo from Courtney Nicholls, assistant village manager.
The expansion is expected to bring 10 new jobs to the area. In addition, “The village benefits by receiving 50 percent of the tax revenue that we wouldn’t otherwise have received if the company had not made the investment,” the memo states.
The immediate revenue increase is $7,300 for the village and that will increase to $14,600 at the end of the 12-year abatement.
Lisa Allmendinger is a regional reporter for AnnArbor.com. She can be reached at lisaallmendinger@annarbor.com. For more Dexter stories, visit our Dexter page.
Comments
SalineGuy
Wed, Nov 30, 2011 : 7:15 a.m.
Unfortunately, this article could be a lot clearer for the poor OWSer's . Let me explain it to you. First, the abatement is on new property and equipment, not the existing property and equipment. There is no net loss in tax revenue as they will continue to pay as before on their existing property and equipment. Second, if you do a bit of deduction, you can see it is a 50% abatement on the new property and equipment. They will be paying an additional $30,300 in property taxes per year for the 12 year abatement period. After the abatement expires, it will increase to an additional $60,600 per year.
Hemenway
Wed, Nov 30, 2011 : 3:50 a.m.
Dapco is an outstanding company that has stayed local and hired local, providing employment for local folks. While other employers have outsourced jobs to overseas locations and let go workers, Dapco has stayed right here. They deserve a reasonable tax break.
Val
Tue, Nov 29, 2011 : 9:12 p.m.
So who will make up the difference in taxes lost for the next 12 years? The home owner of course. There is no other way. Yes jobs were created and retained. But the cost of having the plant is still there. They are hidden costs i.e. road maintenance, snow plowing, increased need for fire protection and possibly the need for another police car. This just an example why property taxes are not the right way for a government to receive sufficient revenue to operate. There has to be a better way so the home owner is not the only one paying for the operation of the government with the constant threat of losing their home if they cannot pay their propety taxes. Remember your are leasing the property from the government. As long as the property tax is paid you can live there.
AnnArBo
Tue, Nov 29, 2011 : 7:58 p.m.
This is a great example of a growing company, that is creating direct and indirect jobs thru construction (drive by their facility) that will continue to do so with some easing of its tax burden. This also makes sure they will want to stay in Dexter, you can't kill the goose that lays the golden egg.
Linda Peck
Tue, Nov 29, 2011 : 6:46 p.m.
The tax break disease spreads to Dexter!