Michigan EDC recognizes Mistequay collaborative as recovery zone, tax relief official
STANDISH — Let the recovery begin for Mistequay Group Ltd. in Standish, as the state, on Dec. 16, officially recognized the tool and die collaborative the company belongs to.
“We did receive a full, unanimous approval for our petition for tax relief,” said Mistequay Vice President of Corporate Services Sherry Carpenter.
In August, the Standish City Council approved the local Mistequay plant for property tax relief, which will save the business $13,000 per year for two years, and after the second year of the five-year exemption, 25 percent of the property tax will begin being phased back in.
Carpenter said the tax relief would first impact the city’s revenues in summer 2010.
Mistequay in Standish, according to a statement from the Michigan Economic Development Corporation, is part of the Third Coast Tooling Alliance LLC, a 14-company tool and die collaborative, approved by the state’s EDC on Dec. 16. Carpenter said the alliance as a whole will start working together in January, aiming to collaborate to find better prices for raw materials, establish synergized employee benefits and make collaborated decisions on cost-cutting and marketing.
She told the Independent that a Mistequay plant in the city of Saginaw was also exempted (for 10 years), but the plant in Saginaw Township was not, and the effects can already be seen.
“Our Saginaw Township facility is down to a skeleton crew,” she said. “We didn’t even get to go before their council.
“The other facilities are the ones getting the work,” she added. It had also been reorganized, with the plant’s manager getting transferred to Standish.
Carpenter, when vouching for the relief throughout the summer, said Mistequay was employing more than 50 employees regularly in the past, but was only employing about 30 during the summer due to the recession and its impact on tool and die companies.
The property tax relief and formation of the Third Coast Tooling Alliance are part of the Michigan Tool and Die Recovery Act.
Contracts on the horizon for Standish plant, workers could be called back
Since the tax exemption was approved by Standish City Council in August, Carpenter said only a few employees who were laid off had been called back to work, but added a $2-4 million contract is close to being secured for Standish Mistequay and would provide plenty of jobs in the area.
“I can’t say who it is, but I can say there is one substantial contract … we are closing to getting,” Carpenter said. “We’re expecting to hear still this month, or maybe January at the latest.
“We’ve basically been given the heads up that we’re going to get that contract,” she added. Carpenter also said that since the contract has a $2 million gap in what the amount could be, she is unsure as to how many jobs would be provided.
However, a $280,000 order was secured last week, Carpenter said, to build Delphi steering knuckles.