Serving Gogebic, Iron and Ontonagon Counties

City approves Waupaca Foundry tax exemption

By TOM LAVENTURE

[email protected]

Ironwood — The Ironwood City Commission on Monday approved an Industrial Facilities Tax Exemption for Waupaca Foundry, Inc., which opened in July at the New Ironwood Industrial Park.

The 3-0 approval with commissioners Joseph Cayer and Kim Corcoran not present, will remove 50 percent off the millage rate equal to about 11 mills as a tax break for the company. The commissioners said the company has a positive impact on the city’s economy with a $4.3 million investment for an existing facility at the industrial park and a goal to create 61 jobs.

Scott Erickson, city manager, said the jobs created so far at the facility has already helped to increase the city’s tax base. The city will still receive 50 percent of taxes for a significant infusion of revenue for the community and in 12 years the full tax will be back online.

“This is something that every business in the industrial park has received over the years and it’s a good way to work with companies,” Erickson said.

John Wiesbrock, executive vice president of sales and marketing for Waupaca Foundry, who was present at the meeting, said the company has hired 36 employees who reside in Michigan and six from Wisconsin, and one potential hire at the plant today.

“Our goal is for 61 employees for a three shift operation,” Wiesbrock said.

The U.P. workers have a good work ethic and training is assisted with state funding, he said. Things are ahead of schedule since opening, he said.

“We’re able to have the grants we need to make the investment in this facility here in Ironwood, and we are here for the long haul,” Wiesbrock said.

Waupaca Foundry, and its parent company, Hitachi Metals, opened the Ironwood facility to take castings produced at the other locations for final processing work here, he said. This includes cleaning and finishing, he said.

The commission approved the Ironwood Public Safety Department’s request to purchase 18 Glock 9 millimeter handguns for approximately $8,573. The actual price will be approximately $3,540 with a $5,070 buy back agreement on the 18 handguns currently in use by the department.

Andrew DiGiorgio, director of Ironwood Public Safety, said the department is currently using SIG Sauer 45 caliber handguns that were purchased in 2009 and 2010, he said. The guns are due for required maintenance that includes replacing pins and springs and would cost approximately $200 to $300 per handgun.

The better investment would be to purchase the new guns, he said. A state of Michigan study showed that Glock 9 millimeter is the predominant handgun in use by U.S. law enforcement agencies. The ammunition is more available and less expensive than for the handguns currently in use, he said.

“We looked at long term sustainability and what was more efficient for our agency,” DiGiorgio said.

The commission also approved the department’s request to allow officers the opportunity to purchase the outgoing SIG Sauer handguns at a price of $255 to $295 depending on the model. DiGiorgio said the state executes the transfer of the handguns to the officers and the purchase is credited to the city.

In other business, the commission approved:

—$2,438 to Fahrner Asphalt Sealers, LLC for the pavement chip sealing.

—$54,455 for the Rural Development Pay Package, phase four utility project water portion.

—A report from the city blight officer noting 1,350 property notification contacts regarding violations.

 
 
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