City has a say in effort to keep company in county

Monday, April 21, 2008

By Fredricka Paul
fpaul@citpat.com—768-4927

Keeping Production Engineering in the county is now in the hands of the Jackson City Council.

The city and Blackman Township are in negotiations about a proposed revenue-sharing agreement that would allow 15 acres—planned for Production Engineering’s new plant—to be designated as a Renaissance Zone and qualify for a tax abatement.

City officials hope to meet with township officials soon to discuss the package.

``For the most part we are pretty comfortable with it,’’ Councilman Andrew Frounfelker said.

Production Engineering, 2330 Brooklyn Road in Summit Township, has outgrown its plant and has said it may move to northern Indiana. It employs 130.

The township board Thursday approved an agreement in concept that would help keep the company here.

The next step involves getting approval from the City Council for the Renaissance Zone, and getting the Michigan Economic Development Corp. to approve a tax incentive package.

If the deal goes through, Production Engineering would buy the 15 acres from the Blackman Township Local Development Finance Authority for $100,000. The company would invest $12.75 million in a new plant and equipment. It would add 25 workers the first year and 15 workers a year for several more years.

There is legislation in place that allows Jackson five Renaissance Zones; one would be used in Blackman for the project, City Manager William Ross said.

Councilman John Polaczyk said it would be ideal for Production Engineering to utilize brownfield space within the city. However, he would be happy to see the company stay within the county.

``We need to do everything we can to keep them here,’’ Polaczyk said.