Detroit-based L&W Inc., 1190 Jaycox Road, a steel and metal fabricator that supplies parts for the automotive industry, will receive a 10-year, 75 percent property tax abatement for a proposed expansion.
Avon Finance Director Bill Logan said this is the second expansion the company has undergone since 2012. The expansion calls for a $4 million, 48,000-square-foot addition that will house an additional $8.5 million in new stamping equipment and presses, he said.
Logan said the abatement only pertains to the taxes on the addition. L&W Inc. will pay about $22,000 a year in property taxes on the addition, of which $14,080 will go to Avon Schools, according to Logan. The property tax estimate on the addition prior to the abatement would have been $88,000 a year, he said.
L&W Inc. pays about $53,000 a year in property taxes on its present building, of which $33,600 goes to Avon Schools, Logan said.
Avon Mayor Bryan Jensen said the expansion and tax abatement agreement are a win for the city. The commissioners’ approval was required as it is in all tax abatements.
“Council and myself both agree this is a positive,” Jensen said. “These are on the higher end of blue-collar jobs. It’s great to see the county commissioners support what we’re trying to do.”
According to city officials, the L&W Inc. Avon plant will employ about 120 people once the 35 new jobs are added.
“With the new abatement they are promising 35 new full-time jobs,” Logan said.
Those jobs will generate about $22,700 in annual income tax revenue for Avon.
The abatement scenario under Jensen’s administration, and a previous abatement under Mayor Jim Smith, has ensured L&W Inc. will maintain a presence in Avon, Logan said. The company had plans to close its doors before being purchased by the current owners, Jensen said, who only came to the plant with the intent of auctioning off manufacturing equipment.
“In all reality they were going to say goodbye and thank you,” Jensen said. “But after Mayor Smith put a plan together they were so impressed they decided to stay. This will be their second expansion.”
Logan said the company now has no shortage of work.
“Now they have more orders than they know how to handle,” he said.