DDS Gets Tax Nod
GRAND RAPIDS — City commissioners approved a personal property tax exemption last week for Diversified Distributions Systems LLC, a Minneapolis-based company that will add 150 new jobs to the local work force.
DDS is locating a distribution system in a 950,000-square-foot building at 1040 40th St. SE that once belonged to Steelcase Inc. and now is owned by Ashley Capital of New York, the real estate firm that is redeveloping the former office furniture campus.
City Business Advocate Daniel Oegema told the Business Journal that DDS distributes packaging supplies to retailers worldwide, has 700 employees, and will invest $1.5 million into its new location.
The abatement under P.A. 328 will allow the company to save $145,000 in taxes over the next dozen years. The city’s portion of that total is $36,000. Once the project is completed, the DDS annual payroll is expected to reach $3.9 million, which would result in $39,000 of new income tax revenue each year for the city or $468,000 for the exemption’s 12 years.