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Approval came on the heels of news that JCIM, formerly Plastech Engineering Services Inc., in Croswell, plans to shut its doors on Dec. 1.

Croswell Administrator David Tait said JCIM's closing not only will cost 117 local jobs, but negatively affect the city in other ways.

"They (JCIM) represent fifteen percent of our electric plant's load, or about two hundred thousand a year, plus water and sewer," said Tait. "It's devastating and hits very hard."

JCIM LLC is the legal name of a new company formed by most of the plastic injection molding plants once owned by the bankrupt Plastech Engineering Products Inc.

JCIM was formed through a bankruptcy auction held in June. Milwaukee-based Johnson Controls owns 70 percent of the joint venture, along with Plastech term lenders.

A call regarding the Croswell plant's imminent closing was referred to Johnson Controls, but a company spokesperson was not available at press time.

Meanwhile both Michigan Sugar and J&K hope to achieve slow growth, despite the sagging economy, and looked toward the city to help them achieve it.

"Any time you have a company trying to expand, it's a big thing," Tait said.

Following a public hearing on Oct. 6, the Croswell council approved a 50 percent capital improvements tax break for Michigan Sugar on a $1.5 million juice purification system.

Factory Manager Greg Soule said the improvement will recover more sugar from the beet product, as well as, in the long term, help the Croswell plant achieve its goal of slicing 6,000 beets a day.

"It is one of many steps we wish to achieve on product quality," he said.

In a request to the city council, company spokesman Ray VanDriessche wrote that 18 beet sugar factories have closed in the past 20 years, or 44 percent of all industry plants due to increasing fuel and chemical costs.

"Reducing energy and chemical consumption is vital for continuing factory operations, and improved competitiveness is key to providing adequate financial returns to area growers, when pressure to grow other crops is high," he wrote.

"As a cooperative owned by local growers, factory performance is directly tied to keeping local farms viable," he said.

Michigan Sugar's Croswell plant employs 72 full time and 233 seasonal employees.

A second public hearing was held, after which council also approved amendments allowing the city's Tax Increment Finance Authority to issue bonds to buy J&K Manufacturing's three current buildings in the city's industrial park.

Buying the buildings will allow J&K to build a larger 75,000 square foot facility in the city's industrial park, said Company President Scott McKeand.

J&K produces aluminum and steel marine parts. It also produces parts and special coatings for the auto industry. In Croswell, it has 120 full time employees.

Two of the company's three buildings are on Louise Street and one is in the former Dean Foods plant.

McKeand said that the company also has factories in Port Huron and Rockledge, FLA.

"Florida is where most of our business comes from. It makes more sense for us to move there," McKeand said. "But with the support the city has given us, and the good employees we have, we've made the decision to stay here and close the Florida plant."

J&K will lease their current buildings from the city until the economy warrants their building their new plant, tentatively to be located on Louise Street.

"We see it as a huge positive move for the local economy," McKeand said.

J&K's current buildings will cost $1.375 million to be paid by the issuance of bonds. The bonds will be repaid over 20 years with tax money recaptured by the city's TIFA district, Tait said.

Should J&K move to its new facility, the city then can use the three empty buildings to lure new industry or as incubator sites to develop new business, Tait said.