Marysville manufacturer getting tax break amid plans to expand, add 10 jobs
A Marysville manufacturer is getting a partial tax break as it prepares to expand an area of its operations and add a few more jobs.
Mark Eschenburg, plant manager at TI Fluid Systems, told Marysville City Council members on Monday that the company’s local plant, which makes automotive fuel and brake tubing, would be integrating more production that’s currently outsourced to its facility in Ontario, Canada.
Building improvements to the TI site, 184 Gratiot Blvd., would include interior demolition of non-load-bearing walls to expand floor space for new manufacturing lines — where processes help “improve the corrosion performance of the tubing” produced — and new office and quality inspection space.
Eschenburg said the change in production will allow them to “retain our current workforce, as well as add heads to our employment ranks.”
“Which we’re very pleased to be able to do,” he said. “As many of you know, we’ve been part of the city and its business operations since 1992, so we recently signed a lease agreement extending our … tenure for at least another 13 years, so we’re happy to remain a bulwark here.”
Bruce Seymore, the vice president of business services at the Economic Development Alliance of St. Clair County, said TI Fluid Systems is going to be making $1,854,525 in property improvements at its Gratiot Boulevard location.
They would complete construction in a two-year period, he said, committing 10 new jobs above its current base.
To help ease the process, the company requested a 12-year tax abatement — or a break from having to pay full taxes based on the higher property assessment that’d otherwise result from their expansion.
“The current taxes they’re paying will be 50% of new taxes that result of these investments,” Seymore said.
Eschenburg said the company would also be investing $6.8 million in equipment for production.
When asked about pay for the new positions, Eschenburg said they would fall more on the “white-collar side” at around $17.50 an hour.
Fernandez: Tax abatements help retain, attract business
The Auburn Hills-based TI Fluid Systems was rebranded from TI Automotive in 2019.
The city of Marysville created a new industrial development district bordered by Gratiot, Ravenswood Road, and nearby train tracks in 2016, and at the time, TI Automotive was the only manufacturing company within its boundaries.
Under state law, the district allows companies to seek out tax exemptions when they plan on making improvements to their property.
City Council members signed off on an industrial facilities tax exemption certificate for TI and the 12-year tax abatement at their regular meeting Monday. City Manager Randy Fernandez talked about the investment TI was making in Marysville by moving part of its operations from Canada.
“They could’ve moved it elsewhere, they decided on Marysville. So, we’re appreciative of that,” he said. “We have not given an abatement in quite a while. But abatements are common. They’ve been common for many years....I know I get excited every time I can tell you that a new business is coming into Marysville. But I get more excited when we can retain a business. TI Automotive, SMR, ZF, that’s the backbone, those are the jobs in this town, and we need to them to stay.”
Contact Jackie Smith at (810) 989-6270 or jssmith@gannett.com. Follow her on Twitter @Jackie20Smith.