Cadillac Products asks township board to consider tax abatement
by Angie Asam–Staff Writer
The Pulawski Township board will be holding a public hearing in consideration of allowing Cadillac Products a personal property tax abatement. Cadillac products approached the board last Thursday as they would like to make a $1.38 million investment in new equipment.
Plant manager Mike Terrill has been working with Joe Libby, with the Presque Isle County Economic Development Commission on the project since late July.
Libby presented the board with a letter telling them they have been working with the Michigan Economic Development Commission (MEDC) regarding the application for abatement.
“Cadillac Products have, and continue to, support this county with jobs and investment. In today’s economy every job is vital to our viability. It is a fact that it may be more economical to relocate these jobs to a logistically better location. The fact that Cadillac Products has shown a commitment to our area is a testament to the work ethic of our people,” stated Libby.
The equipment is to create a new product line to make lighter plastic for the automotive industry and would purchase a plastic molding machine complete with a robot to remove the finished parts from the line.
The project is already started and is estimated that it will create an additional few jobs. It will also decrease costs for the company as they will be able to ship the lighter parts much more efficiently as well as be one of the first plants in the state that is able to provide the new material.
Cadillac Products currently employs about 75 hourly and 20 salaried employees. “It would be a big benefit to us to have the technology. It is a better type of part and a new product line that just started this year. If we can’t get the new equipment we won’t be able to make the part,” said Terrill.
The abatement process would simply mean the company wouldn’t have to pay personal property tax on the new equipment for a maximum of 12 years. They asked the board for the maximum 12-year abatement but the board may decide on a lesser amount of years if they choose.
The process to complete an abatement requires a public hearing and all taxing agencies to be affected to be notified before any decision can be made.
If the abatement is approved it would not mean taxes currently being collected would be lessened but would mean in the future, for a number of years determined by the board, Cadillac would not have to pay personal property tax on the new equipment.
AFTER DISCUSSING the process and the request made by Cadillac Products, the township board decided to move forward with the p
The paperwork, including approval from the township, has to be filed by Oct. 31 to be considered for abatement this year. Terrill is hoping to have the new equipment installed, up and running this year.
Libby will be working with township clerk Marie Wozniak to gather the necessary paperwork and get guidance through the process as the board hopes to hold the public hearing early in October. The board told Terrill they are willing to help and will try to make it easy on him and the company.
Following a public hearing, those interested can speak for or against the project. They can ask questions and give input on the project. A special meeting of the board then would be held for approval of the abatement for a specified number of years and to complete the necessary paperwork to be filed with the state before the deadline of Oct. 31.