KALAMAZOO, MI — The Kalamazoo City Commission voted to set a public hearing for Monday, Oct. 19, to consider a request from Zoetis LLC, for a PA 198 Industrial Facilities Tax Exemption Certificate for 12 years for real property valued at $47,859,166.

The Kalamazoo City Commission approved the hearing during its Oct. 5 meeting.

Zoetis LLC plans to invest about $94,366,000 to the current operation in the city of Kalamazoo. The organization expansion will allow Zoetis to bring in three new products to its Kalamazoo manufacturing location at 2605 Kilgore Road, according to a recommended resolution presented to the commission. The production growth is estimated to create around 22 new full-time jobs with the planned expansion, the city agenda packet states.

Zoetis is the world’s largest producer of medicine and vaccinations for pets and livestock, according to the city of Kalamazoo, and directly markets its products in approximately 45 different countries around the world.

The tax exemption comes under Public Act 198 and requires state approval, city of Kalamazoo Community Investment Manager Antonio Mitchell said. The city can set the duration of the certificate in the process, Mitchell said.

The Kalamazoo City Assessor’s staff has completed a fiscal impact analysis based upon the company’s tax exemption certificate application. The total revenue collected will be $143,577 while $143,578 is abated, according to the city.

Mark Callahan of Zoetis gave a brief presentation, and said the expansion would bring total Zoetis positions to about 1,100 in Kalamazoo County. The project is a 41,000-square foot addition that will allow the company to make new products based on the solid oral dose platforms. The products will be ingestible or chewable tablets, Callahan said.

Plant construction is under way, he said.

Commissioner Jack Urban asked if reports could be audited annually, saying it gives the city a way to check to see the actual number of jobs created.

Vice Mayor Patrese Griffin asked commissioners to consider potential impacts to the community before the vote.

There was a question if the hearing would be in-person or virtual, and the commission took advice from City Attorney Clyde Robinson, deciding to meet in a format to be determined.

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