ATI saves $618K on taxes despite no jobs
There appears to be mixed opinions on what the City of Alpena should do about a tax exemption for ATI Casting Service.
ATI opened its doors in spring of 2008, amid promises of “high paying manufacturing jobs” in the wind industry.
The company stopped operations abruptly in December of 2008 and laid off most of the 72 employees that were hired earlier in the year.
The City gave ATI a nine-year personal property tax exemption to build in Alpena. In exchange, the company agreed to invest $10.5 million in machinery and equipment and create 100 jobs out of the box and 150 by 2010. ATI fulfilled its obligation on the capital investment but never reached its employment promise and hasn’t even come close. There are currently no workers at the plant.
City councilman Shawn Sexton and Sam Eiler would like to revoke ATI’s tax abatement but the program doesn’t allow for that. The only recourse the city has is to sue the company for breach of contract.
ATI has saved about $618,000 in taxes over the past 4 years through the exemption.
City Assessor Jeff Shea will be completing an equipment inventory of the company in the near future to make sure that equipment hasn’t been moved to another facility.
Mayor Matt Waligora doesn’t favor revoking any tax abatement granted to business, unless under “extreme” circumstances.