IRON MOUNTAIN — Systems Control plans to invest $7.6 million to expand its Iron Mountain facility, creating at least 25 new jobs within two years.

In conjunction with the expansion, the company is seeking a property tax abatement of 50% for 12 years through an Industrial Facilities Exemption Certificate. The 12-year term is the maximum allowed under the city’s IFT evaluation policy and the proposed job creation and investment more than satisfies the requirements, said City Manager Jordan Stanchina.

The project calls for construction of a 25,000 square-foot addition at an estimated cost of $5 million, plus $2.6 million in equipment. It would mark the fourth expansion at Systems Control since 2015.

The council will hold a public hearing on the IFT application at 6 p.m. Monday, June 17, at City Hall.

Systems Control is the commercial name of Northern Star Industries Inc. The company designs, builds and delivers protective relay and control panels for electrical transmission and distribution substations across North America.

Its manufacturing operations are based in Iron Mountain, where about 750 people are employed in a 400,000-square-foot facility at 3201 E. Industrial Drive.In September 2018, when a similar tax break was awarded for a $9.9 million project, the city stipulated there be no assessment appeals on the addition for three years. That action came after a 2016 Michigan Tax Tribunal settlement had lowered the company’s taxable value by 63%.

There was no discussion Monday by the city council of introducing a stipulation in relation to the latest IFT application.

In December, Systems Control was acquired by Hubbell Inc., a leading utility and electrical manufacturer headquartered in Shelton, Conn. The previous owner Comvest, a private investment firm based in West Palm Beach, Fla., had acquired Systems Control in March 2018.

Systems Control was founded in 1962 as a division of MJ Electric of Iron Mountain.

In other action, the Iron Mountain council:

≤ Heard Douglas and Tammy McDaniel of Kingsford, owners of an apartment building at 630 H St., Iron Mountain, praise the response of the city’s police and fire crews to a May 17 fire at the site. Although firefighters responded within four minutes it took more than an hour to knock down the blaze enough to enter the 10-unit building. One occupant, Trinh Thi Ggoc Vo, 46, died. The McDaniels, at times near tears, said they came to publicly praise responders “for what they did and what they do.” They noted the 1972 structure contained paneling in lieu of drywall, contributing to the speed at which the fire spread. They also advocated for the city’s rental ordinance, saying it gave firefighters key knowledge about the structure.

≤ Accepted three parcels in the west Mud Lake area being donated by the estate of the late Charles Houser. A public hearing was held and there were no comments.

The land is swamp and Mud Lake is part of the city’s stormwater collection system, Stanchina said. In addition to the donated parcels, the city will move to acquire two adjacent parcels that are in the tax foreclosure process. The anticipated cost is $2,200.

≤ Established the millage rate for the Downtown Development Authority District at 2 mills, or $2 per $1,000 of taxable value, the same as the current rate.

≤ Approved a budgeted contribution of $1,500 to the Sons of the American Legion Post 50 fireworks display planned for Thursday, July 4, at dusk from Millie Hill. The city’s donation to the Independence Day event is up from $1,000 a year ago.

≤ Renewed its annual membership in the Michigan Municipal League at a cost of $5,380, an increase of 5%. The league is an advocate for municipal issues at the state level and provides training and education through seminars and conferences.