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Cadillac Products seeking tax abatement for new equipment

September 21, 2012
Jordan Travis - News Staff Writer , The Alpena News

PULAWSKI TOWNSHIP - An automotive plastics factory south of Rogers City is seeking a tax abatement from Pulawski Township for new equipment to make a new product line.

Cadillac Products Automotive's Rogers City Plant, 4858 Williams Road, has applied to the township for a 12-year personal property tax abatement on $1.38 million in new equipment, Plant Manager Mike Terrill said. The machinery would allow the factory to increase production capacity for one of the company's newer product lines.

Joe Libby, Presque Isle County resource officer who is working with Cadillac on the abatement process, said the personal property tax break would help the factory stay competitive. Also, the factory will add a few jobs to work the equipment.

"This won't cost the township or the taxing entities within the township - and that's the county, the ambulance board, and so on - any money today," he said. "It just means they wouldn't get any additional if it's approved, while creating jobs and ensuring the plant's viability."

Township Supervisor Martha Roznowski said the abatement process is in the early stages. Cadillac Products has sent the township a list of machinery to be installed, but the tax savings the company would realize hasn't been calculated.

Township officials also must decide on how long the abatement will be, Roznowski said. Twelve years is the maximum amount of time allowed under state law.

Township officials will meet to review Cadillac's application Wednesday, township Clerk Marie Wozniak said. The public meeting is at 6 p.m. at the Pulawski Township Hall, at the intersection of Darga Highway and Leer Road.

After the application is reviewed, the township must hold a public hearing, notifying the 10 entities that levy taxes within the township beforehand, Wozniak said. Representatives of these entities have a chance to voice concerns over the abatement at the public hearing. Township officials likely will set a date for the hearing at their Wednesday meeting.

Once the township decides in a special meeting whether to go ahead with the abatement, they have until Oct. 31 to get the information to the state, Wozniak said. Meeting this deadline ensures the state will approve the deal by Dec. 31.

"Once we have a public hearing, I don't anticipate too much time needed, by then I think the board would have the information we need to make a decision," Roznowski said.

Cadillac Products is one of the Troy-based company's four locations, according to its website. Founded in 1942, the company makes various plastic parts for the automotive industry, including water shields, bumper energy absorbers and sound barrier assemblies.

There are around 75 hourly and 25 salaried employees at the Rogers City plant, Libby said.

Pulawski Township officials are "more than willing" to work with the company, a large employer in the rural township, Roznowski said.

"I think it's only fair that we work with them to keep them here," she said.

Jordan Travis can be reached via email at jtravis@thealpenanews.com or by phone at 358-5688.

 
 

 

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