Saline City Council OK's $5.364 million tax abatement for Kunststoff-Technik Scherer expansion
Saline Mayor Gretchen Driskell, left, and Deputy Clerk Jacquelyn Lindimore listen to a presentation during Monday night's council meeting.
Lisa Allmendinger | AnnArbor.com
The Saline City Council unanimously approved an amended tax exemption for Kunststoff-Technik Scherer&Tier USA for 12 years Monday night.
The company at 1294 Beach Court produces interior and exterior plastic products, such as door trim, spoilers, airbag covers and roof moldings for the automotive industry, according to its website.
Lee Bourgoin, the city's finance director, said the company is investing more money in its facility.
The company plans to expand its current 73,487-square-foot building to 106,224-square-feet and add 20 jobs within two years of the completion of the expansion, according to information on the application. The company currently employs 60 people. The total project cost is expected to be about $5.364 million, about $2.041 million for building and land improvements and about $3.322 million for machinery, equipment, furniture and fixtures.
"We appreciate you expanding again, and thank you for your contribution to the city," said Saline Mayor Gretchen Driskell.
Should the company discontinue its operations prior to the end of the 12-year agreement, it must pay back the abatement based on a formula that takes into account the days remaining in the 12-year abatement and the end of the agreement with the city.
Lisa Allmendinger is a reporter with AnnArbor.com. She can be reached at lisaallmendinger@annarbor.com. For more Saline stories, visit our Saline page.
Comments
Robert
Mon, Mar 14, 2011 : 1:58 a.m.
How about finding how many of the employees from this company reside in the city, or township??? Before giving away tax revenue... This is not a good move, compared to Germany where this company is based, we are Low Cost Country...
SalineGuy
Thu, Mar 10, 2011 : 2:54 a.m.
Congrats to the City Council and Kunststoff-Technik Scherer & Trier! Note that the abate value given is the value of the property improvements, NOT the value of the taxes (the millage) they would have paid which is a percentage of the improvements. These are two different numbers. This company also operates a plant in Puebla, Mexico. Would you people prefer the jobs go down there? The fact of the matter is that property taxes in Saline are relatively high. A number of communities which are just outside the Washtenaw county borders have millages that are nearly half of Saline's. It'd be nice if our millages were low enough that we didn't need to offer abatements to attract business. Unfortunately, that's not the case here in Saline.
SMAIVE
Wed, Mar 9, 2011 : 9:05 p.m.
Half of something is better than nothing. Oh wait, the governer's new proposal is you get nothing and you pay the half. Which looks better now?
Fat Bill
Wed, Mar 9, 2011 : 4:15 a.m.
Remember that these tax abatements reduce, but don't eliminate the new taxes on a property. In addition to the potential of bringing new jobs to the city the school, libary, and other special districts will see in increase in revenue without much in the way of an increase in demand for services. Almost every city is happy to offer these abatements to light manufacturing facilities, research and development firms and the like; those businesses only require basic city services and even with the abatement such expansions are a win for the local government involved.
debling
Wed, Mar 9, 2011 : 3:52 a.m.
Here we go again. Socializing costs and privatizing profits. Any wonder why your taxes are so high? Reason #1 - you are paying your own taxes + the Michigan business share as well. With Gov. Snyder's repeal of the Michigan business tax, taxpayer subsidies to business in the form of tax breaks must also end.
DaLast word
Tue, Mar 8, 2011 : 5:26 p.m.
The theory here is that presumably this will bring home buyers into the city thereby sharing the tax burden. The problem is that most cities use it as a licence to keep spending money on non essential things and overpriced union contracts to city workers. The middle class will see no relief in there taxes until they stand up and fight.
Hillbillydeluxe
Tue, Mar 8, 2011 : 4:51 p.m.
How about giving residents a tax abatement.