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Council approves Menards$21 million bagging-plant expansion, grants 12-year tax abatement and Brownfield assistance
Summary
Council approved an industrial facilities tax exemption and amended a Brownfield plan to aid Menards' proposed $21 million bagging facility and soil remediation on a 30-acre industrial site; Saginaw Future told council the project retains 76 jobs and will create five more.
The Saginaw City Council voted to approve an industrial facilities tax exemption and to amend the citys Brownfield plan to support Menards proposed $21 million expansion, which will build a roughly 38,000-square-foot bagging facility that Menards said will package aggregates and Portland cement for its retail stores in Michigan.
At a public hearing Grace Smith, economic development coordinator with Saginaw Future, described the project as "a $21,000,000 investment to construct a 38,000 square foot bagging facility." Smith said the project would retain the companys existing 76 jobs and create five new positions and that the Brownfield amendment is needed because the site (about 30 acres) has long-standing soil contamination that requires significant remediation and grading.
Menards representative Nick Brenna said the company intends to hire locally and that the site manager is a Saginaw resident. Brenna said the company promotes from within and that the expansion would support long-term local employment.
Council action and votes: Council adopted the industrial facilities tax exemption certificate and approved the Brownfield plan amendment. The roll call for the industrial facilities tax-exemption resolution recorded eight votes in favor and one opposed (Council Member Hammond voted no). The same voter pattern applied to the Brownfield amendment vote.
What the benefits cover: Saginaw Future and staff said the tax abatement applies only to new construction and that the Brownfield tax-increment financing would assist extraordinary cleanup and remediation costs tied to the redevelopment. Saginaw Future characterized the use of abatement and Brownfield tools as standard practice to make redevelopment of contaminated industrial sites financially feasible.
Next steps and conditions: Staff and Saginaw Future said the abatement and Brownfield assistance apply to the expansion only and do not affect Menardss existing tax base. No contractual details beyond the 12-year abatement term (as requested) were finalized at the council meeting; staff will follow through on required administrative steps.
