The Chelsea Standard
A Heritage Newspaper
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Sheridan Books nets $7.9 million in tax breaks
By Edward Freundl, Staff Writer
PUBLISHED: April 10, 2008
Action taken at the March 25 City Council meeting will allow a Chelsea book manufacturer to reap tax benefits from a $7.9 million expansion.
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The council conducted a required public hearing on Sheridan Books' application for an industrial facilities tax exemption (IFT).
Company officials said Sheridan is expanding its production line again by adding a fifth Timson offset web press and other equipment, which will require a physical expansion of the facility at 615 E. Industrial Drive.
The 10-year tax abatements were for a $120,000 building expansion, and for $7,763,816 in new equipment.
"It's a reflection of the continuous growth here," said Michael Seagram, Sheridan Books' President and Chief Operating Officer.
"We addressed on bottleneck in the plant in our large books with the press we got last (October), but at the same time that we added that capacity, we saw an increase in our smaller books - that demand has gotten so heavy we needed to expand."
Seagram said some of the plant's older equipment will be retired and removed to help make room for the increased business.
"We are going to be taking two of our three black-and-white sheet-fed presses offline," Seagram said.
"We found a buyer for them and will take those off our floor just as we take delivery of the new press, which will be some time in the middle of August."
No residents in the audience spoke either for or against the proposal, so the council immediately took action on the request.
"They have met all the criteria for a 10-year abatement for personal and real property," said City Administrative Assistant Georgia Beeman.
On separate unanimous votes, the council first approved the real property tax exemption for the building expansion, then approved the personal property exemption for the new equipment.
Seagram noted that Sheridan's work force would be expanding as well.
"We are going to be adding 20 or 30 employees overall this year as a result of the additional volume," he said.
In other business, the council heard a presentation by Chelsea Senior Center officials on their annual making budget request.
Senior Center board president Chuck Schauer told the council about meeting a group of seniors from Findlay, Ohio, who were on a tour of Chelsea recently.
The group was visiting the McKune Memorial Library, the Chelsea Teddy Bear Co., Chelsea Milling Co. and the Gourmet Chocolate CafÈ.
"That gives you an idea of what other communities think of us and what we have to offer seniors," Schauer said.
He asked the council for continued financial support from the city "if you can see your way clear."
Senior Center Director Tina Patterson told the council that the center receives no federal, state or county funding for its programs, which have increased by 35 percent.
"Ours is one of the most active senior centers in the state," Patterson said.
"It is a one-stop shop for the mature citizen of Chelsea. We're not asking for ourselves, but for our burgeoning senior population."
Patterson requested $25,000 for 2008-09, and noted that it had been two years since county government had extended an offer of financial help.
"We received $12,500 in matching funds from the county two years ago, but we were told we were not to anticipate that ever happening again," Patterson said.
The budget request was a formality, because city staff is just now beginning to build the '08-'09 budget.
"We will consider your request at our budget meetings in April," Mayor Ann Feeney told Patterson.
The council will conduct work sessions open to the public to discuss departmental budgets at 6:30 p.m. April 16 and April 17, at city offices, 305 S. Main St.
"I hope you would consider putting a City Council representative on your board of directors," City Manager John Hanifan suggested to Patterson.
"I think that would facilitate communication between the two bodies."
The final item on the agenda was to choose an auditing firm for the city.
Director of Administrative Services Kim Garland told the council that she received proposals from a number of firms and selected several to conduct face-to-face interviews.
"We received six proposals and evaluated them on price and services, but we weren't confident in the low bid so we want to interview three firms that were in the mid-range," Garland told the council.
The firms selected were Plante & Moran, Rehmann Robson and Post, Smythe Lutz & Ziel.
"Myself, John Hanifan and a council member will do the half-hour interviews," Garland said.
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