Zeeland Record
JR Automation expects to begin production at its new facility in Zeeland this fall.
Joel Cooper, the company’s facilities director, told the City Council Monday night that the high-tech manufacturing firm plans to move into its manufacturing space at 800 E. Riley St. in October, and then move into its new corporate headquarters building by April of next year. Cooper told the council that the project is moving on schedule.
“That progress reflects the strong commitment between the city, our contractors and our internal teams,” Cooper said.
The council voted 4-0 Monday to approve an industrial facilities tax abatement on JR Automation’s real property investment of $44.6 million into the project. The abatement will cut the company’s tax burden by nearly 50 percent over the next 12 years.
JR Automation expects to create at least 150 new jobs in the first two years that the plant is open, to go along with the more than 1,000 existing jobs that will be moving into the Zeeland facility, according to its tax break application to the city.
JR Automation specializes in the design and production of automated manufacturing and robotic integration products. It is building a 565,403-square-foot facility on the southwest corner of Riley and 84th Street, of which 500,000 square feet will be used as manufacturing space. The company reached a milestone last month with the completion of steel erection for the manufacturing space, Cooper said.
Cooper expressed his gratitude to the city for its support throughout the development of the project.
“Your collaboration, responsiveness and support have been outstanding. Quite simply, we could not have asked for a better partnership, as we establish our future here,” he said.
JR Automation is investing a total of $72.8 million into building the new facility, on what was the last remaining industrial-zoned piece of land in the city capable of accommodating a project of its size.
“JR Automation has been a great partner to work with, and they directly align with the city’s vision for that site,” city Community Development Director Tim Maday said.
JR Automation’s chief procurement officer, Doug LaCroix, wrote in the company’s application that its investment “reinforces Zeeland’s concentration of advanced engineering, technical, and professional roles, directly promoting higher-skill employment opportunities.
“The consolidation of regional operations into a global headquarters supports career pathways in automation, robotics, and engineering disciplines, upgrading the city’s labor force through the presence and expansion of specialized, knowledge-based jobs.”
The new jobs that will be created by the JR Automation project will pay an average wage of $43.75 per hour, LaCroix wrote.
The council on May 18 approved adding the JR Automation site to the city’s brownfield development plan, opening the door for the company and the city to capture up to a combined $12.6 million in tax revenues that are expected to be generated by growth in the parcel’s property value to repay them for infrastructure and other eligible site development costs.
The current total taxable value of the JR Automation property is $574,942, and the estimated post-development taxable value after all phases of construction are complete is expected to reach $31 million in 2027, project consultant Samantha Mariuz of Fleis & VandenBrink told city officials earlier this year.
Council members Phung Lam, Amy Langeland and Mary Beth Timmer were absent for Monday’s vote. Their absences were excused. With just four council members present, all four needed to vote yes to approve the resolution on the tax abatement, City Attorney Jim Donkersloot said.
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