Port Huron manufacturer getting 7-year tax break for $2.6 million expansion
A manufacturer that specializes in metal coating in Port Huron’s industrial park is slated to get a partial seven-year tax break for an expansion valued at more than $2.6 million.
Port Huron City Council members signed off on a 50% abatement for Michigan Metal Coatings, which provides industrial coatings on parts for auto customers, at Monday’s meeting. Under an industrial facilities tax exemption, the company would be able to pay just half the normal taxes based on the increased value of the property where the expansion is planned.
Jay Dusenberry, vice president for Michigan Metal Coatings, told officials they planned to add to their existing facility at 2015 Dove St. — they’ve also a location a block away at 1720 Dove — building another 18,200 square feet for a new coating block.
“Our end customers are Honda, Toyota. The reason we’re expanding is actually for Tesla. … What we’re doing is expanding to the north on 2015 Dove St,” he said.
Michigan Metal Coatings purchased the neighboring property from the city in 2019 for $70,000. Its other Dove properties were purchased in 2018.
“Port Huron’s been a great place for us to do business, and we had the chance to purchase through the city the three and a half acres north of us on 20th Street," Dusenberry said. "So, now we’re expanding into that property. We’re planning to grow here in Port Huron.”
According to the company’s application, work for the new addition is required to be completed within two years, putting Michigan Metal Coating’s deadline at the end of 2024.
Bruce Seymore, vice president for business services at the Economic Development Alliance of St. Clair County, said in addition to the $2.6 million expansion itself, plans include the installation of $2 million worth of equipment.
When asked about determining the seven-year abatement period — up to 12 is allowed under state law — by Councilwoman Anita Ashford, Seymore said they worked with city administration to set details.
“The company is committing to create seven jobs through this expansion project, which they will report back to the city clerk on an annual basis through the life of the abatement,” he said.
Dusenberry said they’ve over 120 employees currently, having recently added a third shift at 1720 Dove. He said they hope to have 140 employees total between the two buildings.
The abatement decision was unanimous among present council members. Councilman Conrad Haremza and Mayor Pro Tem Sherry Archibald were absent.
The Port Huron Industrial Park is located within an area on the city’s south end and bordered by 32nd, 16th, Petit, and Dove streets.
Contact Jackie Smith at (810) 989-6270 or jssmith@gannett.com. Follow her on Twitter @Jackie20Smith.
This article originally appeared on Port Huron Times Herald: Port Huron manufacturer getting 7-year tax break for $2.6 million expansion
