Council to consider tax abatement for Lenawee Stamping/Van-Rob Tecumseh

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Tecumseh City Council is expected to consider adopting a PA 328 application from Lenawee Stamping/Van-Rob Tecumseh at its Monday, Jan. 7 regular meeting.
The council held a public hearing on October 15, 2012, for the purpose of accepting comments relative to the application.

According to paperwork compiled by Tecumseh City Manager Kevin Welch for presentation to the council members, a PA 328 is a 100 percent tax abatement on new personal property installed in the facility after the time that the city council would approve the abatement. During the October meeting, Welch said, “This is for new investment and is for anything invested after the abatement is approved.”

If adopted, the agreement would be for a period of seven years, beginning with equipment installed after January 8, 2013 through December 31, 2020.

Lenawee Stamping/Van-Rob Tecumseh is currently working with the state of Michigan on a potential incentive package, and, in October, had asked the council to postpone approval on the abatement while that process continued.

Draft paperwork presented to council noted a potential creation of approximately 200 new jobs during the course of the agreement. It also noted that Lenawee Stamping/Van-Rob Tecumseh is requesting the abatement as a “necessary component to make this project competitive with other states where the work could be located.”

“They’re still negotiating with the state so the deal is not done, and our abatement, if approved, would be contingent on that,” said Welch. “We’re in competition with a number of other states regarding this project, but it’s a big project, and we’re happy that it looks like it’s going to be here.”

The council has also been working with Lenawee Stamping/Van-Rob Tecumseh regarding matching funds for a future road project totaling an estimated $332,000 and involving a turn-lane on M-50 in front of the plant. The council recently approved adding the plant property to the city’s Local Development Finance Authority, which would allow an opportunity to include the property in a tax increment financing district to help finance the matching funds for the project at around $83,000.

Tecumseh City Council will meet on Monday, Jan. 7 at 7:30 p.m. in council chambers at Tecumseh City Hall to address the tax abatement request and other agenda items.

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