Council gives tax break to printing company

By: Terry Oparka | Troy Times | Published February 1, 2012

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Investment dollars continue to trickle into Troy.

The Troy City Council supported a printing company’s investment in new equipment and approved a tax break at the Jan. 23 council meeting.

Council voted 5-2 to grant a seven-year, $42,149 tax abatement to Tepel Brothers Printing in support of the company’s investment of $2.4 million. Mayor Janice Daniels and Councilman Doug Tietz opposed the abatement.

“I’m generally opposed to tax abatements, and I’m voting no,” Daniels said.

The investment is expected to result in 10 more jobs at the facility on John R, which the company owns.

Troy City Assessor Nino Licari said City Council granted the company a tax abatement in 2008 in support of an investment of $5 million, which produced 22 new jobs. Currently, 96 people work at the facility.

Licari said Tepel Brothers purchased a small parcel of remnant land on John R in order to expand its operations in new printing technology. At that time, the investment resulted in Tepel Brothers being one of the only companies in the U.S. to use the new, state-of-the-art process that allowed printing on plastic, Licari explained.

The council had approved a 12-year, $35,933 tax abatement in support of that investment.

When the council approved the previous request, owner James Tepel had said the market in this area had been declining, and for the company to stay in Troy, it had to bring on new equipment.

Last year, five rebate requests came before the City Council, and they were all approved, always by divided votes. Only one came before the council in 2010, which was also approved by divided vote. Licari noted that, historically, in Troy, those council members who have opposed abatements have opposed them on principle, rather than having any issue with the company requesting the abatement. The Tepel Brothers request is the first abatement request the council has considered this year.

In the event that a municipality does not grant a requested tax abatement, the company may appeal that decision to the State Tax Commission.
 

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