The Plymouth Common Council approved tax abatement requests for AK Industries and Plymouth Hospitality LLC.
AK Industries was approved for a personal property tax abatement for a $3M capital expenditure for rotational molding machines and winding machines for fiberglass.
The investments are expected to result in ten additional employees.
AK Industries received a standard seven-year phased abatement. The additional assessed value of the equipment will be phased in over the next seven years and will result in an estimated tax savings of $134,000 over seven years as well.
The City of Plymouth is expected to receive $99,821 of tax revenue during that period of time on this investment.
AK Industries is a locally founded company that has grown to become the leading producer of fiberglass and polyethylene products for the Wastewater Industry.
Plymouth Hospitality LLC was approved for a tax abatement for a $6.6M investment for the construction of a Hampton Inn by Hilton on Miller Drive next to the Susan Bardwell Aquatic center. The project was initially started during the construction of the Aquatic Center, but was halted as a result of the pandemic. As the nation, states, and counties returned to pre-pandemic levels of travel, the project resumed. The construction was granted an extended 10 years phased in real estate abatement. The City of Plymouth is estimated to collect $1,109,159 in Real Estate taxes over that period of time. The Hampton Inn by Hilton will be a four story, 91 room hotel which will bring additional revenue to Marshall County from the Inn Keeper’s Tax. The 10 year abatement will save Plymouth Hospitality LLC an estimated $870,841. The hotel is expected to employ 15 professionals with an estimated $425,000 payroll.
“These are just two of several capital investment and expansion projects that are taking place in Marshall County. MCEDC will be bringing another expansion of a local company to the board at the next meeting. It is a good indicator of the local economy that companies are looking to expand production locally and are increasing wages to attract talent to fill the additional positions.” said Director of Marshall County Economic Development Corporation Greg Hildebrand in a follow-up interview.
“I feel that a tax abatement helps the business for expansion and allows the business to buy equipment or add on that they otherwise wouldn’t be able to expand or add on. It also in a lot of cases adds jobs to their business.” said Council Member Duane Culp in a follow-up interview. He explained that an abatement is normally seven years and taxes are blended in over that time frame.
