A food company that has started a planned $29.7 million project to expand its operation in Warren has been approved by city officials for a tax break for the next dozen years.
Lipari Food’s investment includes redevelopment of two auto salvage yards, a 252,000-square-foot building with one of the largest freezers in metro Detroit, a truck terminal building and food processing and manufacturing on a total of five parcels on Bunert Road, south of Interstate 696.
As part of its request for an industrial facilities tax exemption certificate, the company has promised to create 199 jobs within two years and a total of 337 positions within three years after the project is complete.
Ray Skowronek–The Macomb Daily
“It’s a big deal for us,” company President Thom Lipari said. “The big deal is we got rid of two junkyards that I’ve been looking at for a lot of years. We’re going to put a real nice facility there and hopefully bring a lot of jobs to the city.”
Lipari hopes to have expanded operations running – and new workers on the job – starting in April or May 2017.
Warren City Council members seem delighted by the sizable project, and unanimously favored the tax break that will reduce by 50 percent the property taxes on new buildings, machinery and other equipment. The city’s recommendation now goes to the Michigan Tax Commission, which is expected to approve the tax break.
For Lipari, that’s expected to mean a total savings of $5.9 million through 2028. Meantime, the various local tax entities will receive their proportionate share of new tax revenue.
“We’re one of the companies in the state that are bringing jobs in from other states, instead of jobs leaving,” said Lipari, referring to positions coming to Warren from Ohio, Illinois and Wisconsin.
“That’s pretty important to us that we can do that.”
The company offers food service in several categories including deli, bakery, dairy, grocery, seafood, packaging confections and grab-and-go categories.
The level of investment for the new warehouse/freezer building, equipment and promised job growth qualified the company for the maximum-term tax relief under Warren city government’s guidelines for industrial tax abatements.
Redevelopment of five parcels on Bunert, totaling 18 acres, includes property formerly used as an auto salvage yards began in late August. Ingredients of the project include:
• $4.2 million in land improvements including ground work, concrete and utilities.
• $21.8 million for a new 260,151-square-foot building to include a freezer, cooler, cool dock, maintenance/material handling room and offices.
• $3.5 million in racking equipment.
“We’re very pleased with the project,” Councilman Patrick Green said.
