TECUMSEH — Following a public hearing Monday, the Tecumseh City Council approved an industrial facilities tax exemption certificate for Dorin USA LLC to install equipment at 788 Campus Parkway.
The total project investment is expected to be $1.8 million. An industrial facilities exemption allows for a 50% abatement of property taxes on new industrial property for a period up to 12 years to encourage investment and economic development.
Dorin USA is the first business with plans to move into the Tecumseh Business and Technology Campus on the east side of town off East Chicago Boulevard. It has signed a seven-year lease with an option to buy the spec building that is being constructed by Casa Villa Builders of Macomb County’s Clinton Township.
Dorin USA is a refrigeration compressor company with its base of operations in Italy. Its current North American headquarters is in Blissfield.
The company’s product was originally sold through Blissfield Manufacturing, so it made sense to keep the location until the company decided to put its roots in a new brick-and-mortar location.
“Due to our growth, we searched for a new location in the southeast Michigan and northwest Ohio area. Buildings of this size are not common to find in our area,” Brian Porter, general director of Dorin USA, said. “Since I live in Blissfield, it just made sense to remain in the area. The location in Tecumseh is close to Detroit Metro Airport making it easy for customers and our Italian colleagues to visit. Tecumseh also offers multiple restaurants with a small city charm. We were surprised at all of the small businesses that sold something other than antiques.”
The council had the ability to approve an abatement for a shorter period of time, based on its evaluation of the investment and potential for employment retention and creation. The abatement does not affect the current taxable value or existing taxes collected by the city or the other taxing jurisdictions.
There are also provisions for the city to revoke the abatement if the projected new investment is not achieved. The council also authorized city manager Dan Swallow to execute the letter of agreement that specifies the investment, job creation and reporting requirements under this certificate.
In other business
During its meeting Monday the city council also:
- Approved a proposal from the Krieghoff-Lenawee Co. to renovate areas of city hall in the amount of $56,190.
- Approved a redevelopment liquor license for The Tecumseh Tavern LLC for their future location at 206 E. Chicago Blvd. This is the former Tecumseh Camera Shop, which is currently vacant.
- Reappointed Chris Masters to the city’s elected officials compensation commission.
- Reappointed Katie Mattison and Ron Wimple to the city’s retirement board.