Two weeks after granting General Motors a tax abatement, the Orion Township Board took a similar measure with Cobasys, albeit on a much smaller scale.
The board adopted a resolution confirming an exemption for Cobasys through the Michigan NextEnergy Authority (MNEA).
The exemption is expected to be in the neighborhood of a $57,000 tax break, though Cobasys Vice President of Finance Joe Crocenzi said that is just a projected figure at this point.
‘We are forecasting an increase in employees and having this exemption will help us remain competitive with this facility,? Crocenzi said.
Cobasys is located at 3740 S. Lapeer Road and specializes in alternative energy development.
The exemption from ‘Alternative Energy Personal Property Tax? will help Cobasys continue research and testing on their battery systems.
‘For us, personal property at this facility is equipment to do testing on our batteries,? Crocenzi said.
The township board did not have to take action in support of the exemption, as the resolution automatically takes effect unless they opt out of the exemption.
‘I think it sends them a message that we really support them,? Township Supervisor Jerry Dywasuk said of the board’s action. ‘We really appreciate what they’re doing and are encouraging them to do more.?
A public hearing was held before the board made their decision.
‘The law allows for a local taxing unit to opt out if they hold a public hearing,? Clerk Jill Bastian said.
But the board’s supportive resolution was unanimous.
‘They have already exceeded the growth they expected at the plant, both in the size of the plant and the number of employees,? Bastian noted.
Crocenzi said that Cobasys currently employs just over 200 people at their Orion facility and the exemption will help in the addition of around 30 more employees.
He added that the board’s decision to adopt a resolution in support shows the strong partnership between the township and Cobasys.
‘We view them as a very close partner,? Crocenzi said. ‘We work with a lot of their agencies and make sure they know exactly what we’re up to.?
The township had 60 days from receipt of Cobasys? Jan 9 letter to act on the exemption. The school board must hold their own hearing if they want to opt out, though no plans for such a hearing had been made at press time.
The board granted GM a $55 million tax abatement in February, but Bastian pointed out that this isn’t quite the same thing.
‘They’re totally different things even though they both are paying reduced taxes,? she said. ‘From what we understand, it is a relatively new feature offered by NextEnergy.
She noted that having both GM and Cobasys in the tax base generates more money for the township.
‘It’s a lot less costly to maintain the businesses you have in your community then to go out and find others,? Dywasuk added.
‘Adding more people working here has a multiplying effect.?