General Motors will add 15 new jobs, along with retaining an additional 135 if plans to erect an 850,000 square foot paint shop at its Flint Assembly plant in Michigan follow through, according to a report from MLive.
Yesterday, GM filed and was approved of an industrial facilities tax exemption with the city of Flint, allowing for a tax break of 50 percent of the calculated true cash value of the new $124.5 million facility. The exemption will allow for a 50 percent tax break for 12 years, starting from the date the facility is first occupied. GM would pay about 2 million in property taxes during the plants first year of operations.
Flint Emergency Financial Manager Darnell Earley told MLive he is convinced that the project could help stimulate the city’s economy.
“We’ll approve the requests and move forward with the project. This is an important project to the community and it’s incumbent upon me that the tools are in place to foster that kind of economic development. I’m convinced that this project certainly falls within the capabilities of assisting the city with its issues of economic stability and coming up with a plan that will sustain the city in the long term,”
The approval extends an existing tax abatement granted to GM two years ago for the same proposed paint shop. Plans to build the facility stalled, and the three year construction period allowed under the abatement is set to expire at the end of 2014.
GM spokesman Tim Wickham told Mlive that the paint shop was not built due to the company exploring a number of expansion opportunities at the time.
“What happened a couple years ago is that we were looking at different invest (sic) opportunities across North America and trying to prioritize our projects. This was one of those projects back then that was being considered,” said Wickham.
The addition of the paint shop could significantly increase the life span of the Flint Assembly plant, GM’s oldest North American facility. Also, with 10 percent of GM employees located in the city, the local economy depends heavily on General Motors’ investment.
Paperwork submitted to the city of Flint from GM indicates that construction on the proposed facility is expected to start in January of 2014 and the plant will be fully operational by December 2016.