Pittsfield Township to consider $384,000 tax abatement as company builds new facility
Pittsfield Township will consider a 50-percent tax abatement for a company that's planning to build a new facility.
The abatement will save Control Gaging around $32,000 in local taxes annually, or $384,000 over the life of the 12-year abatement, said Pittsfield Township assessor Julie Albert.
The Board of Trustees will consider the abatement after a public hearing at their meeting on Wednesday.
Control Gaging's current headquarters at State Street and Venture Boulevard.
Tom Perkins | For AnnArbor.com
Control Gaging designs and manufactures precision gauges that go into machine tools at their current building at 5200 Venture Blvd.
According to the township, the company provides services for the aircraft industry, marine industry, auto industry and medical industry among others.
Control Gaging President David Hayes said building a new facility just on the other side of State Street at 847 Avis Drive will allow the company to increase its capacity by 25 percent and it will hire two more people to increase its staff from 32 to 34 employees.
The 24,500-square-foot building will consist of around one-third office space and two-thirds manufacturing space. Control Gaging does all its design; research and development; and manufacturing on site.
“Building our own building will give us more manufacturing space. We’re crammed at capacity right now,” Hayes said.
The real property is estimated at $3.4 million and the personal property investment is estimated at $108,000.
The company was founded in Saline in 1972 and moved to Ann Arbor before moving to Pittsfield Township in 1986.
Pittsfield Township Supervisor Mandy Grewal said the current township board supports such incentives.
“It’s the whole concept of economic gardening. We want to retain businesses in the township, help them grow here, and this is one tool in our toolbox," Grewal said.
The abatement request is the maximum allowed by the Michigan State Tax Commission.
Comments
CenterWing
Thu, Feb 14, 2013 : 8:17 p.m.
With the comments posted you would think this company issued a press release about moving its operations to China, or even Ohio where there is no tax on tangible real property for businesses. This article should read that Control Gaging is going to build a new facility in Pittsfield Township that will secure 32 existing jobs and add and additional 2. It should also mention the INCREASED tax revenue of $384,000 in the first twelve years. Control Gaging could build their new factory anywhere; you should be thankful they picked an empty lot in an existing business park and stayed in the township.
carolyn taylor
Wed, Feb 13, 2013 : 11:20 p.m.
We give Control Gaging $384,000 and they are only going to hire two new people? Why give them a tax abatement?
Ann English
Wed, Feb 13, 2013 : 12:16 a.m.
It sounds like Control Gaging makes its own BRAND of precision gauges. I wish they were in a building where they could expand just by moving into suites vacated by other businesses.
Arno B
Tue, Feb 12, 2013 : 11:17 p.m.
"Economic Gardening" - WOW! What euphemisms will these grubby politicians think of next!
Macabre Sunset
Tue, Feb 12, 2013 : 5:35 p.m.
It doesn't seem like the majority of people understand what an abatement is. It's not lost tax revenue, it's accepting less tax revenue in order to retain a business that would otherwise not be paying anything at all. We can question whether simply having an attractive tax rate and providing no abatements is better than this policy. Others would say that businesses should never be taxed at all, because it's inefficient and taxes are passed along to consumers anyway. That way, you tax the money going out of the company to individuals - like an S-corp works in states where they're recognized.
michael Limmer
Tue, Feb 12, 2013 : 4:38 p.m.
Greed is good.
current
Tue, Feb 12, 2013 : 4:11 p.m.
Snyder gave $1.8 billion tax breaks to companies off the backs of the poor, middle class, & our schools. Do they really need more? Really!
GoNavy
Tue, Feb 12, 2013 : 3:35 p.m.
We don't need to be giving corporate welfare to these people.
timjbd
Tue, Feb 12, 2013 : 1:46 p.m.
I could see offering tax abatement if they were going to rehabilitate a brownfield site but this is a virgin greenfield. Use the incentives to get them to rehab a brownfield.
CenterWing
Thu, Feb 14, 2013 : 8:20 p.m.
Virgin greenfield? It looks like an empty lot in a business park to me.
Goober
Tue, Feb 12, 2013 : 1:36 p.m.
Tax abatements like this are a death spiral. Why not just lower the business tax base to the abated level for all businesses and dump more of the tax burden on the voters and citizens. Go figure!
applehazar
Tue, Feb 12, 2013 : 12:44 p.m.
I am sorry but I dont consider hiring 2 people worthy of a $384,000 tax abatement. Tax abatements are handed out way too often. How about a tax abatement on my pittsfield township home - I pledge on not terminating anyone!
Cory C
Tue, Feb 12, 2013 : 7:49 p.m.
In addition to my previous post, I just did the math: $80,000/year paid to those 2 employees x 12 years (the length of the 32,000/yr abatemet) = $960,000. So we can give them a <$400,000 break, and IMMEDIATELY throw an extra MILLION dollars back into the economy? Tell me again how this is a bad idea? Not only that, but going from 32 to 34 employees is a 6% increase. If all businesses in Michigan increased their labor force by 6% what exactly would unemployment be at? I'm guessing nil. So yeah, still seems like a good idea to me! Seriously people, think before you post.
Cory C
Tue, Feb 12, 2013 : 3:08 p.m.
2 people's take home salary: 40,000x2=$80,000 a year Tax abatement: "$32,000 in local taxes annually," How is this a bad thing?
Nicholas Urfe
Tue, Feb 12, 2013 : 1:48 p.m.
Are you going to go speak at the public meeting?
MixedStock
Tue, Feb 12, 2013 : 1:06 p.m.
Agreed.