GR Label and Van’s Pattern receive tax abatements
The Grand Rapids Label Co. and the Van’s Pattern Corp. received industrial tax exemptions from the city last week, as city commissioners gave both manufacturers a green light to go ahead with their projects.
GR Label, which makes pressure sensitive labels at 2351 Oak Industrial Drive NE, will invest more than $920,000 into the latest press technology.
“The investment will allow the company to expand their range of product offerings and to re-establish themselves in a market they no longer operate in and secure contracts with a former customer,” said Kara Wood, city economic development director.
GR Label plans to add six more positions to its current work force of 65 once the press is purchased. The average wage for the new employees will be $20 an hour and all six will receive benefit packages.
The abatement will last for eight years and will save the company $4,400 in state and local tax payments in each of those years. The city will gain nearly $2,500 annually in new income-tax receipts from the firm’s investment.
“Grand Rapids is known for its print industry,” said City Commissioner Walt Gutowski, who owns the Swift Printing Co. on Bridge Street. “(GR Label) is one of the really fine printing companies here. It’s a world leader.”
Van’s Pattern will invest $175,000 into upgrades to its shipping and receiving area at 11 Sweet St. NW. The work will include adding a new loading dock and reconfiguring some of its interior space.
“The investment will allow the company to operate more efficiently and provide the additional interior space for production and potential future equipment additions,” said Wood.
Van’s Pattern makes polystyrene patterns for the tool-and-die industry. About 85 percent of its work is for automotive-related applications. It employs 29 workers and will add four new employees from the investment. The average wage for the new workers will be $12.50 per hour and all will get benefits.
The exemption is for 12 years, and Van’s will save $1,900 annually in tax payments. The city will get an additional $1,000 in new income-tax revenue from the investment. Wood said Van’s should complete its project later this year.