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Posted on Thu, May 10, 2012 : 5:55 a.m.

Phoenix Contact granted 10-year tax abatement for business park renovations in Pittsfield Township

By Lisa Allmendinger

phoenix_contact.jpg

Phoenix Contact at 500 Avis Dr. in Pittsfield Township.

Melanie Maxwell | AnnArbor.com

Phoenix Contact, a manufacturer of electric connection and industrial automation technology, was unanimously granted a 10-year, 50 percent tax abatement for about $1.9 million in real and personal property by the Pittsfield Township Board of TrusteesWednesday night.

The company purchased the former Atwell-Hicks building in the Avis Farms office park in 2010 and is in the final stages of extensive renovations.

Vince Carioti, global automotive manager, said the company currently employs 38 people and has four openings for software and systems engineers as well as a business development manager position. The company employs 11,000 workers worldwide.

Phoenix Contact had previously leased a space in Avis Farms, but purchased the neighboring building when it became available.

“We love it here,” Carioti said. “When the building came open, we were excited.”

He told township trustees that the first floor is a “customer tech center” and the second floor houses engineering, design and a product line.

Carioti said that the company plans to add 5 or 6 new employees in the next few years.

Founded in 1923, the company has its U.S. headquarters in Pennsylvania.

Lisa Allmendinger is a regional reporter for AnnArbor.com. She can be reached at lisaallmendinger@annarbor.com.

Comments

Michael K.

Thu, May 10, 2012 : 3:01 p.m.

These types of sweat heart deals, that have municipalities and states competing to give away perks to business, should be illegal. This is worse than a zero-sum game, as we play favorites with new businesses and then set ourselves up for blackmail by existing businesses. Oh, you want us not to close that plant in your town? Give us .... We need to establish lower, baseline, no exception taxation across state and municipal boundaries. Otherwise we set ourselves up for the same good old boy network, special interest, and bribery game - business as usual - we have had for 100's of years.

Basic Bob

Fri, May 11, 2012 : 10:56 a.m.

In this case, I don't think there is a competition or a sweetheart deal. This company has been in Pittsfield for a while, they just moved into a bigger building and upgraded it at their own expense. You are right that they were entitled to a tax abatement because "everyone else" got one. Government can pick winners, but then losers can petition the court to get equal treatment.

John Q

Thu, May 10, 2012 : 2:43 p.m.

Snyder hasn't provided enough tax cuts for business?

Basic Bob

Thu, May 10, 2012 : 1:18 p.m.

Atwell Hicks received a tax abatement on this same property which proved to be worthless when they went bankrupt. Phoenix Contact has already made substantial improvements to the building at their own expense.

Veracity

Thu, May 10, 2012 : 12:37 p.m.

Since the personal property tax is likely to be rescinded by the state government, Pittsfield Township should have not offered the tax abatement. If otherwise taxed appropriately, Phoenix Contact will consider the tax as part of doing business while Pittsfield Township can surely put the tax revenue to good use. Phoenix Contact's desire for the property means that a tax incentive is not necessary as a further inducement for it to move to the property.