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Commission postpones decision on Able Medical Devices tax abatement pending state sign-off
Summary
The Marquette City Commission postponed action on an industrial facilities tax exemption for Able Medical Devices after staff said the city lacks required written approval from state authorities and a signed agreement; the company has invested $8 million and expects about 40 jobs.
The Marquette City Commission on May 26 postponed a decision on an industrial facilities tax (IFT) exemption requested by Able Medical Devices, saying the city needs written state confirmation and a signed agreement before it can act.
Why it matters: Able Medical, a subsidiary of JM Longyear, has invested more than $8 million to build a 30,000-square-foot manufacturing facility in Marquette and projects roughly 40 new jobs at the site. Company representatives and the Lake Superior Community Partnership told the commission the investment will increase local spending and support additional regional growth.
City staff and the city attorney told the commission that state law requires either an application filed before construction or a written waiver from the state MEDC or state tax commission. The clerk said a required letter of agreement between the city and the applicant is being drafted and must be reviewed by the city attorney; staff also said the city is waiting for additional clarifying information from the state. For those reasons, the clerk recommended postponing action.
At the public hearing, Leo Islip, representing JM Longyear, called the application a long-term partnership and described the company's regional economic impact. Mary Myers of the Lake Superior Community Partnership said the project would retain and grow quality jobs and strengthen the tax base.
Fiscal and statutory details: The clerk presented the application under the Industrial Facilities Exemption Act and cited MCL 207.551 and MCL 207.572 as governing statutes. Staff stated the company invested over $8,000,000 to construct the facility, added an estimated 40 jobs with an average reported wage of $36 per hour, and described possible future expansion up to 100,000 square feet that is not part of this request. Staff also noted that the property lies in an LDFA boundary where captured tax revenue is used for development purposes.
City staff estimated the withholding of property tax revenue captured by the LDFA would reduce annual city revenues by roughly $20,000 and estimated the company's annual tax savings at about $70,000—6,000 for a 12-year abatement, which staff said would total just under $1 million over that period. The commission did not act on those estimates; they were presented as part of the staff briefing.
Commission action and next steps: Commissioner Larson moved to postpone the application pending receipt of the state's written guidance and completion of the city's required agreement; the motion was seconded by Mayor Pro Tem Ottaway and carried 6-0. Staff will bring the item back after receiving the requested state documentation and the draft agreement reviewed by the city attorney.
The commission took no final action on the IFT certificate at the May 26 meeting.
