Tax break eyed to keep plant

Tuesday, April 15, 2008
By Keith Roberts
kroberts@citpat.com—768-4922

Production Engineering has outgrown its Summit Township plant and could move to Indiana.

But Blackman Township and Jackson officials are considering an agreement to give the company a tax break to keep the plant—and its 300 jobs—here.

Production Engineering’s 65,000-square-foot plant at 2330 Brooklyn Road was built in 1982, expanded in 1989 and 1994, and can’t be expanded any more, said Jim Jansen, president and co-owner of the company.

``We have to look at our best viable options,’’ Jansen said Monday. ``We have to find or build a larger facility.’’

Jansen said the company is looking at an existing building in northern Indiana but would rather build a new, 100,000-square-foot building on 15 acres on County Farm Road owned by the Blackman Township Local Development Finance Authority, a move proposed by the Michigan Economic Development Corp. The Blackman land is next to TAC Manufacturing.

Production Engineering, a family-owned business started in 1974, makes precision-machined parts—primarily drive train and steering components for heavy trucks, construction equipment and materials-handling industries.

The company has about 130 employees and expects to add 15 to 20 jobs per year if it can expand. ``We do expect continued growth,’’ Jansen said.

The Blackman Township Board has called a special meeting for 6 p.m. Thursday to discuss an agreement with the Jackson City Council to facilitate the move.

Jansen said he is optimistic the township board will approve the agreement.

``You never know the results of the vote, but I think it’s in the best interest of Jackson County and the best interest of Production Engineering if we have a positive vote,’’ he said.

Blackman Township Supervisor Raymond Snell was cautious but said the board is always looking to do what it can to promote economic development.

``It’s easier to keep what you have than try to recruit new (businesses),’’ Snell said. ``That’s what the board is considering.’’

Snell said even though the property is in the township, only the city can designate it as a Renaissance Zone and make it eligible for property tax abatement for up to 20 years, so the township needs the City Council’s help.

``This all depends on everything working together,’’ Snell said.

Under the agreement, the township would transfer jurisdiction of the property to the city for tax purposes, but the city would have limited authority over it.

Snell said he didn’t have an estimate of the property tax savings for the company, but it would be substantial. Jansen said he didn’t have an estimate either and the tax savings aren’t as important as having room to grow.

If the township approves the agreement, the city would consider it. City Manager William Ross said the company has roots in the community and no one wants it to leave because it doesn’t have room to grow.

``Certainly in today’s economic times you don’t want to be losing those jobs in the community if you can help it,’’ Ross said.

But Ross said while he has discussed the agreement with Snell, City Council members haven’t had a chance to discuss it with their counterparts on the township board.

``There needs to be some discussion of issues so this can move forward,’’ Ross said.

Summit Township Supervisor James Dunn said he doesn’t want to lose Production Engineering, but the company looked for other locations in Summit Township and didn’t find any, and he would much rather see it go to Blackman Township than Indiana.

``We need to make sure we are supportive of businesses that want to be in the Jackson area whether it’s Summit Township or not,’’ Dunn said.