Saline Grants Request to Transfer Tax Break to JAC Products

City Council approved a tax break for JAC Products at Monday’s council meeting.

JAC Products, a leader in vehicle roof rack manufacturing, is investing $6.7 million to expand and is being supported by $570,000 in tax credits from the Michigan Economic Development Corporation. As part of the expansion, the company purchased the neighboring 70,087-square-foot Huron Valley Sales facility at 151 S. Industrial Dr. It then asked Council to transfer the abatement granted to Huron Valley Sales to JAC Products.

The 10-year tax abatement is on $2.65 million worth of land and property. According to paperwork filed with the city, JAC Products officials said the abatement will support an expansion that will create 87 new jobs within two years.

Council voted 6-0 to approve the request.

Mayor Gretchen Driskell thanked JAC for investing in the community.

“I look forward to continuing our partnership. It’s been a very good partnership in the past and I would like to see the mutual assistance carry on in the future,” Driskell said.

At the invitation of Driskell, JAC Products Vice President David Birchmeier spoke before council made its decision. He reported that the company has been in town for more than 10 years and plans to continue operations in Saline beyond the term of the abatement.

Driskell asked him about the company’s financial health.

“Business is doing well. 2009 was a rough year. 2010 was significantly better. We have 70,000 square feet (in the new building) and close to 170,000 square feet fully-utilized in three shifts, pretty much seven days (a week),” he said. “Revenues are great this year. The auto industry has really picked up and we are very grateful for it.”

Finance Director Lee Bourgoin offered a simple rationale for the tax break.

“JAC Products is using the entire facility that this (tax break) relates to and it makes sense for it to be transferred into their name. They are responsible now for the taxes and Huron Valley sales has moved out,” he said.

JAC Products’ request received the public support of Saline Area Chamber of Commerce Executive Director Larry Osterling.

“JAC Products is one of our top communities, not only because what they do is state of the art, but because of their community footprint and the things they have been involved with, whether it’s distributing hams at Christmas time or one of their other endeavors. I think everyone recognizes what a good community citizen JAC Products is,” Osterling said. “This is a company that has brought us jobs and brought us technology."

Osterling said the company is helping to strengthen Saline's economic future.