04/04/2006

Local officials push for a tax-free zone

BY SHERI McWHIRTER

sherimcwhirter@hotmail.com

GAYLORD — Local officials who support a state renaissance zone proposal for Gaylord are awaiting a decision from Gov. Jennifer Granholm.

Michigan Senate Bill 922 includes tax-abatement incentives for business areas throughout the state and sits on the governor's desk. Michigan renaissance zones void all property, education and business taxes for 12 years, then phase them back in over a three-year period.

The Georgia-Pacific factory and 750 surrounding acres in Otsego County's Bagley Township were added to the package shortly after the unexpected plant closure last month. State Sen. Tony Stamas of Midland cosponsored the bill.

"We urge the governor to continue with the pace we've set to help deliver this option for the people of Gaylord and surrounding communities that relied on those jobs," Stamas said.

Heidi Watson, a Granholm spokeswoman, said Granholm intends to sign the bill by mid-April.

Ken Glasser, Otsego County commissioner, said he appreciates the availability of tax-break incentives in the wake of the closure.

"It makes it very attractive for businesses to locate here," Glasser said.

The plant employed 210 people and the closure caused an economic ripple through the Alpine town's small business community. Some companies that contracted with Georgia-Pacific made layoffs, while others expect a significant loss in future revenues.

Bagley Township Supervisor Bill Giles said he was once unsure of the proposed tax breaks, as it would be a loss in revenue for both township and county governments. But he said regaining lost manufacturing jobs is a greater priority.

"I think we'd be better off to have something in that factory than to have that tax money," Giles said. "The jobs are more important."

Jeff Ratcliffe, executive director of the Otsego County Economic Alliance, said there have been some inquiries about the site, but he would not identify the companies.

"I'm confident we'll see that the facility will go into new uses," Ratcliffe said.