Two other companies, Allan Tool and Machine Co., and US Farathane Corp., have also asked Sterling Heights for similar tax breaks on investments of $700,000 and $697,000, respectively. They, too, will be considered Oct. 19.
Michigan law allows governments to cut taxes for local communities by 50% on new industrial investments for up to 12 years. Sterling Heights Assessor Matthew Schmidt says the city's policy is to grant the full 12 years on any investment of $75 million or more. Schmidt will recommend six-year tax breaks for Visteon's proposed new investment of about $8 million at its 18-1/2 Mile plant and the US Farathane proposal.
"It's too early" for a recommendation on the length of the Allan proposal, he adds. "It's a combination of the size of the investment and the number of new jobs that will be created."
Visteon produces auto chassis-related components, such as axles, differential gears and driveshafts. Originally a unit of Ford Motor Co., the company became independent four years ago and now has customers among all major automakers.
Allan Tool and Machine's investment would create six full-time jobs, the company tells city officials. The company, located in the 18 Mile-Mound area, now has 15 employees. US Farathane, a supplier of plastics components to auto manufacturers, says its investment would create five full-time jobs at its Mound Road facility. The company now has 180 employees.
Both Visteon and US Farathane have received property tax breaks from the city council for previous investments, according to Schmidt.
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