FLINT TWP.— A public hearing is set for July 5 to consider an application for an Industrial Facilities Tax Exemption Certificate (IFT) for Shaltz Automation, 5190 Exchange Drive.
Applicant Phil Shaltz wants to add an addition to his 18,000 square-foot existing building for the purpose of creating a robotics wing, said Tracey Tucker, township building director.
If granted, the IFT would give Shaltz a 12-year, 50 percent tax break on new development only. The existing facility still will be taxed at 100 percent, Tucker said.
The value of the new build is estimated at $789,142 including land acquisition, machinery, fixtures and other improvements.
“Shaltz Automation has been in business for over 40 years and have been located in Flint Township for 38 of those years,” Shaltz said in his application letter. “Our business is mostly a distributor and provider of automation equipment servicing the auto related tier one and tier twos in lower Michigan.”:
Shaltz said his business has been located on Exchange Drive for four years and now has an opportunity to expand. Business is growing because of an increased customer base, expanded product offerings and an added robotics aspect, he said.
Shaltz said he upgraded the building to state-of-the-art when he purchased it in 2012.
“With this substantial investment, we would like to hire more people to support our customers” he said.
Shaltz has about 59 employees now and is looking to add ten more over the next two years, Tucker said.
Exchange Drive is already located in an Industrial Development District (IDD), so there is no need to set that as part of the application, Tucker said. After the township approves it, the application goes to the Michigan Department of Treasury for final approval, she said.
An IDD must be created prior to initiating a IFT project, according to information provided on the Michigan State Treasury website. It is offered as a tax incentive to manufacturers wanting to renovate or expand aging facilities or build new ones and also promotes the establishment of hightech facilities.
An IFT certificate grants an exemption from ad valorem real and/or personal property taxes for one to 12 years, as determined by the local unit of government where the facility is located.
Applications are reviewed and approved by the local unit of government, but are also subject to review at the State level by the Property Services Division and the Michigan Economic Development Corporation. The State Tax Commission (STC) is ultimately responsible for final approval and issuance of certificates. Exemptions are not effective until approved by the STC.