General Motors is considering expanding its Wentzville, MO plant as part of its $2 billion national investment plan. If realized, the deal would create 2,000 jobs over the course of several years.
City leaders are currently hard at work at making the deal happen by ensuring that certain tax invectives will be available for The General.
“What it does, it takes the capital equipment and investment they make in the plant off the tax rolls, and they are called Chapter 100 investment bonds. It’s a tax incentive and that is part of the business plan when GM considers a plant,” said Mayor Paul Lambi.
GM only went so far as to say that that the application for property tax breaks has been filed and that it’s still very early in the process. According to mayor Lambi, negotiations have been under way for nearly a year and the latest activity is considered promising. Still, Lambi doesn’t guarantee anything:
“We won’t know perhaps for a year after we pass this resolution whether or not GM is going to invest their money in this plant here in Wentzville,” he said.
Officials with UAW Local 2250 are confident about the expansion but aren’t sure of its timing.
“They look good for us about the jobs,” said Van Simpson, President of UAW Local 2250.
A meeting is scheduled for this evening (Tuesday September 13, 2011) for Wentzville city leaders to pass the resolution for the tax incentives. From there, the ball will be in GM’s court.
The GM Authority Take
Hold up. Wentzville, MO? The plant that currently makes the Chevy Express and GMC Savana full size vans? Does it really need an additional 2,000 jobs to build those same vehicles? Or will the plant see the addition of a new model… like, perhaps the upcoming Medium Duty trucks or next-gen Colorado?
Hat tip to Robert B.
Update: According to GMVRob on Twitter, the investment was for expanding the plant by 500,000 square feet for another product.