Auburn Hills has a long reputation as a hub for automotive research and engineering and — out of necessity and design — has oriented its economic development strategy around R&D and corporate headquarters.
After facing the same economic downturn that affected the rest of the region, the city is expected to see tax base growth next year, the first time since 2009, said Tom Tanghe, city manager and director of human resources and labor relations.
That growth is attributed to an influx of corporate headquarters and North American subsidiaries calling Auburn Hills home — most of which have been new builds.
“Our available (commercial real estate) inventory is pretty well picked over,” Tanghe said. “Now we’re seeing greenfield.”
Some new builds in Auburn Hills since 2011 include:
- U.S. Farathane Corp. built a new $27 million, 240,000-square foot headquarters.
- Henniges Automotive North America Inc. built a new $10 million, 54,000-square-foot North American headquarters.
- Gardner-White Furniture Co. Inc. moved its headquarters from Warren to Auburn Hills, retrofitting an existing 350,000-square-foot manufacturing plant, spending $15 million.
- GKN Driveline North America Inc. built a new $23 million, 158,000-square-foot Americas headquarters.
- Atlas Copco North America Inc. built a new $13.3 million, 120,000-square-foot tools and assembly division headquarters.
- Hirotec America Inc. is building a new $23 million, 214,000-square-foot U.S. headquarters to be completed in August 2015.
Other commercial success stories for Auburn Hills: Noah’s Event Venue, an events and conference center planned to house corporate training and social events; new headquarters for Visioneering Inc. and Ralco Industries; and a new Marriott TownePlace Suites hotel off Baldwin Road.
And while its tax base is not primarily residential — it has just over 21,000 residents — Tanghe said the city has approved or is in the process of approving $90 million in residential development as well.
“What we’re seeing is a stabilization,” Tanghe said. “Existing properties are being swallowed and we’re seeing lots of new developments, which should do great for us in the years to come.”
Corporate buyers and real estate developers are attracted to Auburn Hills because of low-debt operations, strong infrastructure spending, and streamlined assessing and permitting process, Tanghe said.
“We’ve always understood the importance of not having a bureaucratic form of government,” Tanghe said. “It’s part of our culture, and it’s paid off.”
The 2009 recession hit Auburn Hills the same way it did the rest of the county. It lost 30 percent of its tax base.
Oakland County watched its tax revenue fall into the real estate sinkhole, declining by 36 percent of its taxable value, or $62 billion, because of the nationwide housing crisis and subsequent auto industry collapse.
It will be decades before the tax base recovers to post-recession levels, Tanghe said, but at least the community is moving in the right direction now.
