The Plymouth City Council members opened two public hearings last week concerning the tax abatements for Culver Tool and Engineering and LA Poly, Inc.
As previously reported, Culver Tool and Engineering, Inc., or CTE Solutions, presented two requests. In one request, CTE Solutions will be making a real estate investment of about $1.950 million with an equipment and machinery investment of $6.5 million at its Walter Glaub address. Another investment would include a $650,000 investment in property or real estate and $1.2 million for machinery and equipment.
Clerk-Treasurer Jeanine Xaver asked about the phase-in of the abatement. According to the paperwork, the first seven years will be 100 percent with the last three years at 50 percent.
She pointed out that she asked previously to do a sliding scale of tax abatements as the property tax losses are growing every year and the 100 percent abatement for the first seven years puts a strain on finances. She further requested to adopt a resolution that would engage a declining scale tax abatement process to allow assessed valuation to increase at a quicker rate to provide more revenue for the city. She also suggested a portion of funding toward education opportunities for lower economic citizens that would help increase the educated workforce. This could create a better income for residents.
Councilman Greg Compton concurred saying that the assessment would decrease at the end of seven years for personal property.
Marshall County Economic Development Corporation President and CEO Jerry Chavez warned that while other communities in the United States can provide these proposals, Marshall County’s economy works a little differently where the type of incentives currently being offered work for this area. There are unique abatements offered for businesses to expand and to compete with other locations to place new business in Marshall County.
Another public hearing was held concerning the tax abatement for LA Poly, Inc. and CAC Holdings, Inc. at 1430 Western Ave. where the personal property investment for machinery and equipment is almost $900,000 while the real estate investment is $1.2 million. The same percentage was given for this with a 10-year abatement at 100 percent for seven years and 50 percent for the remaining three years.
No other public comments were given.
When it came to a vote, Councilman Compton proposed a motion that the abatements be proposed with a personal property declining scale. The motion died for the lack of a second.
Resolutions pertaining to all tax abatements for CTE were approved as presented with Compton opposed.
Resolutions pertaining to all tax abatements for LA Poly and CAC Holdings were approved with Councilman Don Ecker, Jr. abstaining from the vote.
