Kendall Electric gets tax abatement for new development

CLINTON TOWNSHIP — The Clinton Township Board of Trustees approved a tax abatement for Kendall Electric at its July 22 meeting for a development at the business on 15 Mile Road.

The abatement would be for an approximately 30,000 square foot add-on to the business’ 15 Mile and Harper Road location for 12 years. The cost of the project is just over $2.3 million, according to Todd Seibert, a senior economic developer for Macomb County who answered questions at the meeting.

“This is an additional building on the property that we’re developing as we continue to grow,” Dean Maxwell from the Kendall Group, the parent company of Kendall Electric, said at the meeting.

According to the Michigan Economic Development Corp. website, an abatement is a tax break that incentivizes new businesses to come to an area. This is allowed by Michigan Public Act 198. The local governing body grants the abatement, and a public hearing is held.

Clinton Township Treasurer Paul Gieleghem said he wished that there were jobs attached to the abatement but given the nature of the add-on, he understood why this wasn’t possible. He confirmed with Maxwell that the new building would be for storage to accommodate the expansion of the business.

“I think it’s a good move and I appreciate the investment,” he said.

At the board’s June 24 meeting Gieleghem said “very few” of these abatements exist in the township.

“Clinton Township is largely a residential community,” he said. “We have commercial districts. We do not have big tracts of industrial property. We have areas spaced out here and there.”

Clinton Township Trustee Julie Matuzak was the sole no vote on the abatement at the July 22 meeting, saying she disagreed with all abatements and did not have a personal grudge against the company. There were no members of the public who spoke during the public hearing.

At the board’s June 24 meeting, Matuzak said businesses that get these breaks don’t have sufficient follow-up on whether or not new jobs are being created. She said she would prefer the abatements going toward new businesses.

“But the minute they start doing well, they should be good citizens and pay their fair share for the services they receive,” Matuzak said.

At the June 24 meeting, the guidelines for determining abatements were updated, utilizing a point system for how much investment the business would bring to the community. The more investment, the higher the points and the longer the abatement would last. However, Kendall Electric was exempt from these new criteria because of when it applied.

Gieleghem explained at the meeting that this update tightened criteria on abatements.

“It would award less years,” Gieleghem said. “It increases the amount of the investment that is necessary to receive it. You’re not getting points for a small investment.”

Clinton Township Clerk Kim Meltzer joined Matuzak and Trustee Dan Kress in voting no on the changing criteria for tax abatements. Meltzer said she voted no because the changes could hinder new businesses coming to the township.

“When people come up here and shake their head and act like they know what’s going on in the private sector, I find that insulting,” Meltzer said. “I find it unfortunate that these people making the rules infringe upon others’ rights.”

The change passed with Trustee Tammy Patton, Trustee Mike Keys, Gieleghem and Township Supervisor Bob Cannon voting yes.