The Milan News-Leader
A Heritage Newspaper
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Attorney to litigate ACH property tax appeal
Tax challenge could cost city $1.8 million
By Brian Cox, Staff Writer
PUBLISHED: March 27, 2008
The Milan City Council voted Monday to hire a Farmington Hills law firm to represent the city in a far-reaching property tax appeal brought by the city's largest taxpayer.
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Automotive Components Holdings LLC is currently appealing before the Michigan Tax Tribunal the assessed property value of 13 facilities under its management. Included in the appeal is the 1.28 million-square-foot Milan plant, which accounts for 30 percent of the city's annual revenue or roughly $1.5 million of its $5 million budget.
The Milan assessor's office set the plant's value at $68.5 million, but ACH contends the assessment is more than 80 percent too high.
If the tax tribunal rules in ACH's favor, it would require the already cash-strapped city to refund the company about $1.8 million and would reduce Milan's annual revenue by an estimated $900,000.
"Think about what losing $900,000 would do to our city," Mayor Kym Muckler said Monday night. "This is a profound thing. We must defend this. We must defend this vigorously."
Secrest Wardle, who specializes in defense litigation and counsel for insurance, municipal and commercial clients, will be paid $160 an hour.
"Secrest has a great reputation," said council member Martha Churchill, herself a lawyer. "It's imperative that the city of Milan get the best representation possible."
City officials fear that if ACH wins its appeal, it could set a dangerous precedent, resulting in a flurry of appeals from other companies seeking similar treatment. Bishop said the city would seek support from the Michigan Municipal League.
The Milan plant, which opened more than 30 years ago, manufactures gas tanks and rear- and front-end assemblies. It currently employs about 700 workers, down from a peak of nearly 2,000. In December 2006, ACH announced it had signed a memorandum of understanding to sell the Milan plant to Flex-N-Gate, a private manufacturer of plastic and metal auto components based in Urbana, Ill.
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