Two Asking For Abatements
GRAND RAPIDS — Steelcase Inc. and Paulstra CRC Corp. are seeking industrial tax abatements from the city, and both manufacturers will explain their planned projects to commissioners July 10.
Paulstra plans to invest $6.4 million in production equipment over the next two years. The company makes metal-to-rubber adhesion products primarily for the auto industry. This investment follows the $12 million Paulstra spent on property and equipment in 2003.
An abatement would save Paulstra $354,000 in new taxes over 12 years. The city would abate $80,000 of that total over that timeframe. The project could produce $887,000 in new tax revenue for the state and city.
Steelcase plans to invest up to $17 million to renovate its headquarters at 44th Street and Eastern Avenue SE, make property improvements, and refurbish a portion of the Learning and Exploration Center.
An abatement would save the office-furniture manufacturer $1.5 million in new tax payments over 12 years, with the city abating $350,000 of that total. The project could generate $3.9 million in new state and city taxes.
Should the city endorse the exemptions, both requests will go to the state for approval.