The Wixom Tax Abatement Review Committee is recommending that the Wixom City Council approve a pair of tax incentives for two long-standing companies in the city.
Hexagon Metrology has been doing business in the community for over 15 years. It is recommended to receive a tax abatement on a proposed investment of $1.9 million in both real and personal property.
The business intends to lease a new building at 48443 Alpha Drive and embark on enhancing the facility.
“They entered into an 8-year lease agreement on the new building where they will be making significant improvements and purchasing equipment,” said Assistant City Manager Tony Nowicki.
The former automotive supplier has turned its focus to a broader range of measuring devices used in various industries including aircraft, manufacturing equipment, defense, and automotive.
“They specialize in new devices from instruments to software to installation training and servicing,” Nowicki said.
Recently the Michigan Economic Growth Authority (MEGA) board approved a state tax credit of up to $305,928 in support of the project.
The committee recommends that the council approve a 50-percent tax abatement for three years on the company’s proposed investment in real property of approximately $1.7 million and $237,000 in personal property.
“As of this time, however, the company is requesting a re-review of that three-year time frame before council approves it,” Nowicki said.
Hexagon Metrology has committed to bringing in 10 new jobs during the first two years.
“These are high-tech jobs such as technicians, engineers, and service reps that are good for the community,” Nowicki said.
In tandem with Hexagon Metrology’s proposed tax abatement, the city’s tax abatement committee has voted to extend the same courtesy to Hallmark Tool & Gage on an investment of $1.3 million in both real and personal property.
Hallmark intends to make improvements to its building located at 51200 Pontiac Trail, the building they’ve operated in and owned since 2004.
Hallmark has been a small manufacturing tool and gage business partner in Wixom since 1992.
“The tax abatement would afford us (the ability) to do the expansion and be competitive in the marketplace,” said Hallmark owner George Richards. “Tool and gage is in dire need these days and we want to remain competitive.”
Per the recommendation of the tax abatement committee, Hallmark stands to receive a 50-percent tax abatement for five years on the proposed investment in real property for $850,00 and $475,000 in personal property.
The company has committed to adding between three and five new skilled and general labor jobs within the first two years.
“Both these companies are asking for assistance to initiate some type of expansion during a challenging economic time,” Nowicki said.
The Wixom City Council was expected to mull the abatement recommendations at its meeting yesterday, Tuesday, Oct. 11 and schedule a public hearing for Tuesday, Oct. 25.