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HomeMy WebLinkAbout2021-12-06 - IFEC - Tooling and Equip. International CITY OF LIVONIA PUBLIC HEARING Minutes of Meeting Held on Monday, December 6, 2021 ___________________________________________________________________ A Public Hearing of the Council of the City of Livonia was held at the Livonia City Hall Auditorium on Monday, December 6, 2021. MEMBERS PRESENT: Kathleen E. McIntyre, President Scott Bahr, Vice President Jim Jolly Rob Donovic MEMBERS ABSENT: Laura M. Toy Brandon McCullough Cathy K. White OTHERS PRESENT: Paul Bernier, City Attorney Mark Taormina, Planning and Economic Dev. Director Sara Kasprowicz, Recording Secretary The Public Hearing was called to order at 7:21 p.m. with President Kathleen McIntyre presiding. This item is regarding a request for approval of an Industrial Facilities Exemption Certificate for the addition of a pre-engineered metal building for fabricating complex, light weight metal shapes used for electric vehicles, aerospace, and defense industries, located at 12550 Tech Center Drive, Livonia, MI 48150. (Industrial Development Overlay District #108) This item will move to the Regular Meeting of December 13, 2021. The Public Hearing is now open. There was 1 person in the audience. McIntyre: Mr. Taormina. Taormina: Thank you, Madam President. This abatement request is by Tooling Equipment International, or TEI, a Livonia based company for over twenty (20) years. TEI operates in an output approximate of 75,000 square foot facility which is at the north end of Tech Center Drive, located off of Plymouth Road between Sears and Middlebelt. TEI is a leader in design engineering and manufacturing of equipment for the aluminum casting industry. They specialize in castings and prototypes, tooling and automation systems serving a wide variety of customers, including automotive, aerospace and defense as mentioned. To meet increased customer demand and provide additional R&D opportunities using advanced casting technologies, TEI is expanding its footprint with the construction of a new 16,440 square foot foundry and casting center. This new building will be added to the company’s existing 10,000 square foot casting center, which is at 12560 Tech Center Drive, located adjacent to TEI’s main facility. The projected capital investment including both real and personal property cost is over $15 million. This includes an estimated 2 $4 million in real property cost for the construction of the new casting center, which is currently underway. TEI’s investment in Livonia will save approximately twenty-five (25) existing jobs, it will create twenty (20) new jobs within two (2) years of completion. Approval of the abatement in lieu of paying ad valorem property taxes will reduce the company’s tax by a new investment by approximately 26 mils, so roughly 44%. Even with the abatement, the projected $4 million in real property investment would generate approximately $65,000 annually in tax revenue, including $14,000 to the city. As always, this incentive application does not impact any existing assessments. Currently, the total estimated true cash value of TEI’s Livonia real property assets is about $2.6 million with a taxable value of approximately $1.32 million. In 2021, TEI will pay a total of approximately $82,000 in property taxes. TEI is requesting a twelve (12) year abatement in line with Livonia’s tax incentive guidelines, and we apologize this evening, TEI is running unrepresented tonight. I believe, Madam President, you understand the circumstances which he cannot be here. McIntyre: Thank you for representing him, Mark. For the rest of Council, extenuating circumstances with a family member’s health, so Mark offered to represent the petitioner. Giving these extenuating circumstances, I thought that would be very appropriate that we do that. Questions? Jolly: With that answer, I’ll offer an approving. We’ll have an opportunity at the Regular meeting if we have questions, correct? Taormina: Correct. McIntyre: All right, anyone else? Yes. Bahr: Mark, just curious. Given the history of this building, this used to be TRW, right? Did they buy this them? Is that not back there anymore? Taormina: Since I’ve been here, it was never occupied by TRW. This building I think has not been part of TRW, it was Chelsea Hayes, I think. I believe this was always the outlier in that complex of buildings. Bahr: I thought were all part of that, I was just curious. McIntyre: Anyone else? All right, with that, the public hearing is closed. Thank you very much Mark. As there were no further questions or comments, the Public Hearing was declared closed at 7:26 p.m.