Council establishes Industrial Development District for DDP (DuPont) in Midland Ipark

2175525 · January 27, 2025

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Summary

Council established an Industrial Development District for DDP Specialty Electronic Materials US LLC (a DuPont business) under Public Act 198 of 1974, clearing the way for a potential future Industrial Facilities Tax (IFT) exemption application.

Midland City Council voted 5–0 Tuesday to establish an Industrial Development District (IDD) for DDP Specialty Electronic Materials US LLC, a DuPont-associated business, in the Dow Michigan Operations Industrial Park condominium unit 101.

City staff said the IDD is the first local step under Public Act 198 of 1974; establishing the district does not itself grant a tax exemption but allows the property owner to submit a future Industrial Facilities Tax (IFT) exemption application for a new or replacement industrial facility. City staff noted the owner must own at least 75% of the state equalized value of the industrial property within the proposed district; the applicant (DDP) owns 100% of the SEV in the parcel shown in the application.

Kayla Ripley, who presented the request, told council that an IFT exemption application has not yet been filed and that the IDD applicant is not required by statute to provide investment or employment estimates until the IFT application stage. Ripley also summarized the state review process: a municipality acts first on an IFT application; if the municipality approves, the application is forwarded to the State Tax Commission (STC) for final approval. The STC can overturn a municipal decision only for limited statutory reasons (lack of competent, material and substantial evidence; fraud; error of law; misapplication of principles), Ripley said.

Ron Thompson, representing DuPont/DDP, briefly described the company’s presence in the area and its interest in producing materials aligned with electric vehicle markets. Thompson said the project initially is expected to employ about 20 people with the potential to grow; “we anticipate 20 to 30, additional employees if things progress as we anticipate,” he said.

Nicole Wilson of the Midland Business Alliance spoke in support of the district. Council held a public hearing on Jan. 13 and tabled action to Jan. 27 to allow additional review and public notice; council then approved the resolution establishing "DDP Specialty Electronics Materials US LLC Industrial Development District Number 1" in accordance with PA 198 of 1974 by voice vote, 5–0.

Ripley and staff emphasized that council’s establishment of the IDD does not itself set employment or investment levels; those details are expected with any future IFT exemption application and would be subject to council action and state review.