Perrigo seeks $4.1M in tax incentives for planned GR headquarters; Holland expansion moves forward – MiBiz: West Michigan Business News

GRAND RAPIDS Perrigo Co. plc is seeking a 12-year incentive agreement estimated at $4.1 million in total property tax savings for its plans to relocate its North American headquarters to downtown.

The Grand Rapids City Commission set a Jan.12 public hearing to consider the agreement. The commission will consider an Industrial Development District for the project, as well as a 12-year Industrial Facilities Exemption Certificate and a 12-year New Personal Property Exemption Certificate. Perrigos new headquarters is planned at 430 Monroe Ave. NW, where it has committed to a 15-year lease.

The proposed Industrial Development District will include the footprint of the new building, which will have frontage on Ottawa Avenue and Michigan Street, as well as a seven-story parking deck.

Of the estimated $4.1 million in property tax savings, the citys share would be approximately $797,000 in property taxes. Under the proposed incentives, the city would receive about $1.1 million in new property taxes.

Factoring in property and income tax revenue from the $39 million investment and 150 new jobs in Grand Rapids, the city stands to receive $2.6 million over the 15-year period, Grand Rapids Economic Development Director Jeremiah Gracia told MiBiz.

The tax incentive hinges on Perrigo having 150 employees in downtown Grand Rapids within two years of the projects completion. About 100 will be existing Perrigo employees that will transfer to Grand Rapids, and about 50 will be newly created positions.

Perrigo announced plans to relocate to Grand Rapids Medical Mile on Oct. 27, the same day the Michigan Strategic Fund board approved a $2 million Michigan Business Development Program grant for the project. The MSF support is predicated on the anticipated creation of 170 jobs in Michigan.

Perrigos offices are planned for the eighth through tenth floors of the building, comprising 63,550 square feet of what will be a 127,460-square-foot building. The development will be located within Michigan State Universitys Grand Rapids Innovation Park.

Rockford Construction Co. is the contractor on the project, which is expected to start in February and be completed in May 2022.

Employees in the new office building will make wages ranging from $25.43-$53.30 per hour for roles including managerial, professional, technical and sales positions.

While Perrigo will keep its operations in Allegan, the company is also in the process of constructing a new $13 million Holland distribution center, which is expected to create 40 new jobs and be completed in March.

The 357,000-square-foot facility at 796 Interchange Drive will be the third time Perrigo has expanded in the Holland area in the last two years. Earlier this year the company invested $13.6 million to expand its facility in Holland Township with a 66,000-square-foot warehouse. In 2019, Perrigo expanded its facility at E. 64th St. in Holland with a $7 million expansion.

Perrigo continues to be an employer of choice, strengthening their North American base of operations along the lakeshore, and we are pleased to once again take part in their continued growth, Lakeshore Advantage President Jennifer Owens said in a statement.

The new facility will add to Perrigos robust distribution and manufacturing presence in the region, said Ron Janish, Perrigos executive vice president of global operations and supply chain.

This distribution center exemplifies our consumer self-care mindset and brings together finished goods from numerous product lines into one point of distribution, which will enable our customers to receive one comprehensive shipment from Perrigo, Janish said.

The city of Holland is supporting the new distribution center development with a 12-year Industrials Facilities Tax Exemption.

We are pleased that Perrigo chose to build its distribution center in Holland, increasing its operational footprint in the region with its manufacturing facilities in Allegan County and a North American corporate headquarters in Grand Rapids, said Holland City Manager Keith Van Beek. Our support for the distribution center helps maintain and expand a robust economy and quality jobs throughout West Michigan.

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Perrigo seeks $4.1M in tax incentives for planned GR headquarters; Holland expansion moves forward - MiBiz: West Michigan Business News