When Precision Aerospace Corp. announced last summer it was leaving its Crofton Street address on the city’s southeast side and moving to Cascade Township, Grand Rapids city commissioners were faced with transferring a pair of industrial tax exemptions they granted the company years ago.
They did so last week: Precision Aerospace now can take the tax breaks it received for its investments in personal property in 2007 and 2008 to its new location at 5300 Corporate Grove Blvd SE. The exemptions for investments in real property were revoked, however, because that spending won’t be completed at its location in the city.
In 2007, city commissioners approved an exemption for the firm’s $1.7 million investment in personal property and $300,000 in real property. Precision estimated then it would create 20 new jobs from its $2 million investment.
As of last week, City Economic Development Director Kara Wood told commissioners the company had only invested about $570,000 of the $2 million pledge, but she added the company had created 35 jobs, easily topping the 20 it had promised.
Wood explained that Precision had planned to use its real-property investment to expand its location at 704 Crofton St. SE, but then delayed doing so when it began to look for a larger building. She said Precision plans to put those dollars into its new 140,000-square-foot building.
A year later in 2008, Precision received an exemption for a personal property investment of $7.8 million and invest another $2.2 million into real property. The firm said at the time it would add 50 more employees to its work force from the $10 million total investment.
So far, Wood said the company has invested slightly more than $1 million but has already added the 50 workers to its staff.
Wood said the city tried to help Precision find a suitable location within city limits that would handle its growth but wasn’t able to do that. She said the company will consolidate its Grand Rapids staff with the workers at a leased building in Wyoming at the new Cascade Township site.
All 85 of the jobs Precision created from its investments in Grand Rapids will go to Cascade Township, which will cost the city some income-tax revenue.
Precision President Bill Hoyer said last summer he hoped to have the Grand Rapids operation at the Cascade address in January, and then have the company’s employees currently working in Wyoming join them there by next summer.
“West Michigan is home to us. The cities of Grand Rapids and Wyoming have been great to us,” said Hoyer. “Both are very business friendly and have worked with us over our years of growth.”
Precision Aerospace began operations in 1956.
Hoyer said the company will invest $5 million in its new location and create 40 new jobs there over the next two years.
Precision machines, stamps, welds, assembles, tests and inspects mechanical aircraft components and assemblies.