Clinton seeks payback of taxes from Pilkington

By CRISTINA TRAPANI-SCOTT

CLINTON — Village of Clinton Manager Kevin Cornish sought authorization from council during Monday night’s regular meeting to draft a letter to Pilkington stating that it would hold the company to an abatement agreement made in 2003 that requires the company to pay back taxes that were waived according to the abatement. The letter invites Pilkington to state in writing reasons it has for asking for a waiver of the agreement. It has until Feb. 17 to respond.

Pilkington announced last year that it would be closing its Clinton plant by summer 2010. In 1996, the company invested $5 million in new equipment and did the same in 2003. Pilkington sought tax abatements over a 12-year period. The 1996 project abatement may already have expired. Cornish said he would know for sure in two weeks. At issue is the 2003 abatement that wouldn’t expire until 2015. The abatement agreement says that should the company leave the area, the village has the right to ask the company to repay the abated taxes.

Ken A. Hermes, commercial controller for Pilkington North America OE Division, attended last month’s regular meeting asking the village to consider waiving the obligation. He said that the language in the agreement stated that the village had the “right” to ask for the money, which gives the village the option to say yes or no. He added that the company was not going to make money by not paying the taxes. “We’re in the red and we want to be less in the red,” said Hermes.

Cornish said at last month’s meeting that his job was to protect the interest of the village. Since then, he has met with Lenawee County Treasurer Marilyn Woods, Lenawee County Equalization Director Marty Marshall, Clinton Township Treasurer Joanna Thompson, Township Assessor Tim Vorhees and Township Deputy Treasurer Jan Pittman. He said the group concluded that a letter should be drafted.

“The agreement that is standing said that if you leave you owe,” Cornish said. “If they want us to do anything different than that they need to provide a sound rationale why we should proceed that way.”

The next step would be further discussion at the March 1 regular meeting.