The Orion Township Board needs more time to consider possible approval of an Industrial Development District (IDD) on Silverbell Road.
Ashley Capital has asked to have its Orion Commerce Center, located on property on the .south side of West Silverbell, across from Eagle Valley, designated by Orion Township as an IDD.
The board discussed the request on April 18, but voted to postpone any decision until the May 16 board meeting.
Ashley Capital Vice President of Leasing and Acquisitions, for the Midwest Region Detroit office, Susan Harvey told board members that the complex would most likely have three-four tenants but would be built to accommodate up to six.
She explained that Ashley Capital works in the Detroit/Easter United States areas, and currently has other industrial properties in Michigan.
‘We would like this to be an IDD because of the types of tenants we’d like to attract,? Harvey said. ‘We’d like it to be light industrial…Those tenants tend to stay longer, and employ more people.
Harvey said that would mean more taxes paid, which would be better for the community. However, some of Ashley’s tenants could qualify for tax abatements from the township.
‘With the IDD, all the township is really doing is opening the door,? she said of tax abatements. ‘If a tenant qualifies, they can apply…The township still has the discretion to approve it or not.?
According Harvey, about 25 percent of Ashley’s portfolio qualifies for tax abatements, and that they had never had a park where 100 percent of tenants qualified.
The board held a public hearing prior to discussing Ashley’s request, but no residents asked to speak or sent in written correspondence.
Clerk Jill Bastian said the township put a legal notice in the newspaper prior to the meeting to inform the public.
Trustee Matthew Gibb wanted to make sure if the IDD was approved, the township would not be bond by any ‘restrictive language? when considering tax abatement requests.
‘So we can deal with them on a case by case basis,? he said.
Harvey said if the township were to approve a tax abatement, it would still have to be approved at the state level as well.
‘The state provides formulas on how an application might be denied,’she added. ‘You can look at that, or decide do we want to have a higher standard…The odds are 50-50 that anyone will even apply.?
Treasurer Alice Young felt the township should not be naive about that. ‘I think everyone will apply,? she said.
‘They really won’t,? said Harvey. ‘Not everyone will qualify.?
Harvey added that there was some expense and work involved in applying for a tax abatement.
‘Just to get through the process,? she explained.
Besides the IDD, Ashley would need a ‘speculative building designation? approved at the same time by the township as well.
‘That’s because we have no tenants in hand, and we haven’t preleased the building,? Harvey said. ‘That’s a state requirement.?
Trustee Michael Gingell said the township had designated an IDD in that same area for General Motors.
‘The IDD designation is like zoning,? he said. ‘When we look at something like this, it may not be Ashley Capital. We hope it is, but it may not be.?
Trustee John Steimel said he wasn’t against the concept, but had some reservations.
‘I’m a little cautious,? he said. ‘I’m not against the district, but I’m concerned when you set up the IDD, you’re basically saying you’re open to these tax abatements, and I’m not sure I am.?
Supervisor Jerry Dywasuk said the township has generally been against abatements.
‘People have come to me to ask about tax abatements, and my line has been, and I try to be consistent and treat people fairly, that they are welcome to come in and try,? he said.
‘My concern is…If we were to go ahead with (the IDD), we’d have raised the expectation of Ashley Capital,? said Dywasuk. ‘I’m not in favor of this IDD.?
Gibb said other areas were finding particular ways to attract business, the IDD being one of them.
‘Ashley has the businesses I’d like to see in the township,? he added.
The board decided they needed more time and more information from Ashley Capital before a decision could be made.
‘I’m not really sure what I’m agreeing to,? said Steimel. ‘I don’t want to rush into this.?
‘I’m still waiting to see benefit for the township,? Bastian said.