Towns in Tennessee, Michigan, and Wisconsin are all vying for a chance to keep their existing plants running by coming up with the most attractive package to woo assembly rights for a future unnamed General Motors small car. In the showdown, the first place plant will win the right to stay open, while the other two will be consigned to history. Last week, officials from Spring Hill, Tennessee said that The General was allegedly looking for over $200 million in upfront cash as part of any deal.
The state of Michigan and the Michigan Economic Development Growth Authority isn't talking about their GM enticement package, but according to The Detroit News, Orion Township is reportedly chiming in with over $44 million in incentives. The package includes 100% tax free machining costs for up to 12 years, with overall tax forgiveness of $44 million.
The goal for Orion is to preserve the remaining $2.7 million in annual taxes it receives from the plant, along with the additional taxes it receives from the 3,400 employees that work, eat and in many cases live in the area. The township is also offering to build a water treatment facility on-site at the plant, saving GM about $1 million. GM would have to donate the land for the facility, but it would receive an additional tax credit for the appraised value of the land.
GM has said that it would announce the winning facility within the month. The plant is slated to build up to 160,000 vehicles per year and add up to 1,200 jobs.
[Source: Detroit News | Image: Bill Pugliano/Getty]
The state of Michigan and the Michigan Economic Development Growth Authority isn't talking about their GM enticement package, but according to The Detroit News, Orion Township is reportedly chiming in with over $44 million in incentives. The package includes 100% tax free machining costs for up to 12 years, with overall tax forgiveness of $44 million.
The goal for Orion is to preserve the remaining $2.7 million in annual taxes it receives from the plant, along with the additional taxes it receives from the 3,400 employees that work, eat and in many cases live in the area. The township is also offering to build a water treatment facility on-site at the plant, saving GM about $1 million. GM would have to donate the land for the facility, but it would receive an additional tax credit for the appraised value of the land.
GM has said that it would announce the winning facility within the month. The plant is slated to build up to 160,000 vehicles per year and add up to 1,200 jobs.
[Source: Detroit News | Image: Bill Pugliano/Getty]
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