Three Rivers Mayor Tom Lowry and commissioners on Tuesday unanimously agreed to issue an Industrial Facilities Tax Exemption Certificate to American Axle Manufacturing.
The measure means the Detroit-based company will continue with its $102 million investment in its Three Rivers plant, where expansion will include a line to create components for a passenger/crossover vehicle being developed and introduced by a yet-unnamed manufacturer.
Tuesday’s vote means American Axle will receive a 50 percent abatement of $82.8 million in real and personal costs. Company officials said the measure will allow American Axle to retain 125 jobs and add to its current payroll of about 770 hourly and salaried employees.
Company officials present at Tuesday’s meeting said the new line means American Axle will likely see its payroll exceed 1,000 people in Three Rivers by the time it is in full operation at the end of 2013.
The 12-year exemption means the city is giving up about $200,000 in personal property taxes a year.