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Date: 2013-09-27

Norton Shores issues tax break for expansion at Eagle Machine Tool

NORTON SHORES, MI – The city of Norton Shores this month voted to issue a tax break for a planned expansion of Eagle Machine Tool.

After a public hearing during its Sept. 17 council meeting, council members unanimously approved the 12-year tax abatement request from Eagle Machine Tool Corporation for its expansion at 6060 Grand Haven Road.

The Industrial Facilities Exemption was for machinery and equipment totaling $137,500 and will help add two jobs in the Muskegon area, said Eagle Machine Tool Corp. President Ted Fleis.

The city would initially receive $363 in taxes that will be abated. The first year taxes for all jurisdictions will total $2,043, according to Norton Shores City Administrator Mark Meyers.

Founded in 1991, the family-owned company, which according to its website “specializes in retrofitting and manufacturing machine tools for the metal removal and wood routing industries,” has been operating in Norton Shores for two decades.

Fleis said the building improvements will allow equipment to be shipped to the facility for upgrades. The firm recently added 3,000 square feet of space to its preexisting 5,000 square feet building.

About 70 percent of its work takes place at the customers’ site but he hopes to reduce that to 50 percent by increasing in-house assembly.

Fleis said the upcoming changes will allow employees to work locally rather than trek to places as far south as South Carolina. The lengthy commutes have kept employees away for as much as 149 days a year, he said.

“Over the last few years, we’ve lost key people because they couldn’t stand the overnight travel,” Fleis said. “I don’t see the (abatement) as tax savings as much as I see it as an incentive to hire. I’m actually encouraged by that.”

Fleis said up until its recent expansion, Eagle Machine never had the capacity for additional production. The company performs most of its work in Michigan with Detroit standing as the firm’s No. 1 market, he said.

“I can add staff and rebuild business right here in my shop,” Fleis said.

The establishment currently employs seven full-time employees. Fleis expects to add two positions in the next 18 months. Its current location, built in 1995, features two concrete machine pads and a 5 ton overhead crane that runs the length of building.

The city has approved four tax abatements this year. The recent Eagle Machine decision makes it the first abatement since the beginning of the new fiscal year that began on July 1.

During its Oct. 1 City Council meeting, the municipality will host two public hearings for industrial facilities and personal property tax abatement requests from American Glass Mosaics, LLC, 7103 Enterprise Drive.
(Mlive Kalamazoo)


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