Public Hearing Monday on Tax Break for Magna's $48M Expansion

Mayor Bob Gatt supports a tax abatement request from Magna Seating of America, saying it will create and maintain jobs and increase the city’s tax base. (Photo submitted)

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A public hearing will be held at Monday on a tax abatement proposal to assist Magna Seating of America Inc. to keep its U.S. headquarters in Novi.

The public hearing will be held at 7 p.m. at the Civic Center, 45175 W 10 Mile Road.

Magna, a leading auto supplier, plans to build a $48 million state-of-the-art 180,000-square-foot facility on nearly 12 acres on Cabot Drive, just north of 13 Mile Road. Magna said it will retain 305 jobs and add another 164 by 2018, if its plan is approved by Novi City Council.

The plan asks for $4.6 million in tax abatement over 12 years. The incentives are available under Public Act 198.

Mayor Bob Gatt says he supports the proposal, calling it a great opportunity for Novi to increase its tax base. He called on Councilors Gwen Markham and Andrew Mutch to support the Magna plan as well.

Tell Us:

• Do you support tax abatement for Magna Seating? Why or why not?

Both have reportedly expressed reservations that granting tax abatement to Magna could give it an unfair advantage over small businesses that don’t receive such considerations.

Magna, a leading auto supplier, maintains its U.S. headquarters, manufacturing and assembly, and engineering, product development and sales divisions in Novi.

“The Magna plan serves as the foundation for more jobs and business expansion in a large industrial corridor at the northwest corner of 13 Mile and Haggerty roads,” Gatt said.

Gatt said he rejects the fairness argument and believes that the jobs created by this proposed tax abatement will help small businesses in Novi.

“When we promote a business environment that creates more jobs, it means that these new employees will eat in Novi restaurants and will patronize all the other small businesses in the Novi area,” he said.

“When we promote a business environment that creates more Novi jobs, it means that these new employees will eat in Novi restaurants and will patronize all the other small businesses in the Novi area,”Gatt said. “Magna can build its headquarters anywhere in the state of Michigan, but it wants to stay in Novi.”

Gatt said he also supports Magna because this corporation has been a long-time sponsor of the Novi Community School District’s robotics program. Magna donates $50,000 annually to Novi’s Frog Force 503, one of the state’s premier robotic teams.