Romulus council introduces budget amendment to reimburse Welch Packaging under 2015 brownfield agreement

Council introduced a budget amendment to recognize revenue and prepare for reimbursement to Welch Packaging related to a brownfield agreement first approved in 2015. The administration asked the council to introduce budget amendment 25/26-8 at the Oct. 27 meeting; the motion was moved by Councilwoman Tina Talley and supported by Councilwoman Celeste Roscoe and approved for introduction by roll call.

City staff explained that Welch Packaging (acquirer of the original Packaging Specialties facility on Middlebelt Road) completed a request for reimbursement after the original eight-year abatement expired. Consultants reviewed submitted invoices and receipts and identified $200,311.27 in eligible activity for reimbursement; the agreement approved in 2015 allowed reimbursement of up to $700,000. According to staff, the city will move captured tax increment revenue into the budget so that, in December, it can present a formal reimbursement request and then suspend capture beginning in 2026. Staff stated that suspension would shorten the capture period and stop additional reimbursement eligibility for Welch Packaging going forward.

Council discussed the recommendation briefly and then voted by roll call to introduce the amendment. The motion record at introduction shows Miss Talley making the motion, Miss Roscoe supporting it, and unanimous support from the members present.

Next steps: administration intends to return in December with the formal reimbursement request and a request to suspend capture for the brownfield; no final reimbursement was approved at this meeting.