Published at PO Box 96 124 W. St. Clair Romeo, MI 48065. Phone: (586)752-3524 Fax: (586)752-0548
Updated Wednesday, May 22, 2013 at 3 PM EST
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You are Viewing an Archived IssuePosted: 10/24/12
Village trustees grant
$1.2 million abatement
by CHRIS GRAYA local tool and die company will create four new jobs with a $1.2 million abatement.
Observer Staff Writer
On Oct. 15, the Village of Romeo Board of Trustees granted unanimous approval to two 12-year Industrial Facilities Tax (IFT) exemptions for Mac-Mold Base.
The IFTs will create four new jobs and retain 28 current jobs, and will abate $250,000 and $965,252. The $250,000 abatement will be for the purchase of a machine in the company's first plant that will be installed in May 2013.
The $965,252 abatement will cover equipment bought in 2011 and in March 2012 and equipment expected to be purchased at the end of October and December. The equipment will be installed at the company's third plant.
The equipment installation dates on the IFT forms state April 12, 2012 to April 12, 2014.
Camille Silda, senior economic development planner with the Macomb County Department of Planning and Economic Development, said the investment is a sign of the company flourishing in its Tool and Die Recovery Zone.
"Since the economy is improving, the company's business is improving, and thus this is a sizable investment," she said.
The Romeo company is a part of a Tool and Die Recovery Zone, which provides tax breaks for up to 15 years so the company can reinvest its funds and diversify to remain competitive.
In July, the board denied Mac-Mold a five-year extension of its Tool and Die Recovery Zone to make it the 15-year maximum. If the extension was granted, the village would have lost $155,000 in tax revenue.
The company did, however, receive approval from the board in May for adding a parcel to the recovery zone that included its third plant.
Toward the end of the zone's life, the company will begin paying taxes until they pay 100 percent again. In 2013, for instance, Mac-Mold will pay 25 percent of the abated amount, while in 2014 it'll pay 50 percent.
Silda said in 2013 the amount of money abated would only be the requested amount from the IFTs.
"In 2015 is when only this new investment would be abated at 50 percent," she said.