Hillsdale council to tour plant before deciding on tax abatement revocation
HILLSDALE — After much debate back and forth between city staff, the Hillsdale City Council and Drew Homovec, the owner of Corecoyle Composite LLC, a decision was made to adjourn a public hearing on June 17 to July 15 in order to give the council time to tour the facility and see improvements.
City staff had recommended for a third time to the council to pass a resolution requesting the state of Michigan revoke a 12-year tax abatement previously approved by the council in September 2017 that would allow for a freeze in property tax rates in order for that funding to be used to help kickstart Corecoyle Composite LLC into production.
Homovec, during previous efforts to convince the council to support the abatement revocation due to manufacturing not yet commencing, told the council that storm damage to the building’s roof (located at 221 Industrial Drive) and its repairs landed him in court due to the roof being inappropriately repaired causing a delay.
The COVID-19 pandemic’s onset in March 2020 caused further delays and Homovec finally prevailed this February in civil court against the initial roofing company brought in to repair storm damages, yet he has not yet been reimbursed court assessments owed to him from the civil suit.
For these reasons, the council deemed previously that the situations were out of Homovec’s control.
Monday’s hearing was brought on by a six-month review of the facility after Homovec promised the council to be in production by this time last fall.
On Monday night, Homovec said that while repairs and renovations have been completed, he’s awaiting settlement funds in order to purchase raw materials that will allow him to begin construction. After investing over $1 million into the facility, Homovec said he is lacking capital funds to begin as of right now.
City staff pointed to the original agreement with the city that created the tax abatement which promised Homovec would be in manufacturing by December 2020 and create 12 new jobs.
More: Public hearing set for tax exemption application
“He’s been provided with the benefit in the form of abated taxes, yet the city hasn’t received the benefit of the jobs it was promised,” Sam Fry, the city’s marketing and economic director said.
Homovec himself took to the podium and said the situation remains out of his control.
“You keep giving us the same song and dance,” Councilman Bruce Sharp said.
Mayor Adam Stockford first brought up the widely agreed upon suggestion of adjourning the public hearing to 7 p.m. July 15, in order for the full council and city staff to tour the facility and see the status of Homovec’s work to date themselves.
Two2One LLC purchased the property — located at 221 Industrial Drive — on December 15, 2016 after the city council adopted resolution 3258 to establish a plant rehabilitation district encompassing the property on Jan. 4, 2016.
Corecoyle Composites LLC began rehabilitation on the facility — previously owned by Daisy Parts/Eagle-Picher Automotive — on March 1, 2017 with a projected end date of Dec. 15, 2020. The total cost of the building and improvements reported by Corecoyle Composites LLC is $1,308,638.
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Corecoyle Products LL will produce 60-inch-wide composites with the primary equipment already on site, according to Homovec.
The council will open the podium to public comment for the adjourned public hearing July 15 before deciding whether or not to support a city staff recommendation seeking to revoke the tax abatement and pursue collecting back taxes since the abatement was adopted.
Homovec said that if the abatement was revoked, he could not begin manufacturing at all.
— Contact Reporter Corey Murray at cmurray@hillsdale.net or follow him on X, formerly Twitter: @cmurrayHDN.
This article originally appeared on Hillsdale Daily News: Council to decide on tax abatement revocation after tour of plant
