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United States News Title: Chrysler gets big $850 million break for Sterling Heights plant Automaker ready for renovations, new machinery, 900 more workers The unanimous approval by the Sterling Heights City Council of a tax abatement for Chrysler Corp. at the Sterling Heights Assembly Plant has given a breath of fresh air to the once-troubled automobile manufacturer. Chrysler will invest $850 million in the plant on Van Dyke and Metropolitan Parkway for renovations, machinery, special tooling and new equipment. It will bring in 900 new jobs on top of the 3,000 existing jobs at both SHAP and the Sterling Heights Stamping Plant on Van Dyke Avenue and 15 Mile Road. The stamping plant provides 25 percent of the assembly panels used at SHAP. The council last week also unanimously approved a Brownfield Redevelopment plan for the plant that will support Chrysler’s application for a state tax credit. It also will support Chrysler’s tax abatements on new personal property and building investments. Sterling Heights City Manager Mark Vanderpool said the abatements will generate $13.2 million in taxes over the next 12 years. “This has been an 18-month odyssey,” Vanderpool said. “To keep Chrysler afloat has been a remarkable effort by many people.” Vanderpool said if Chrysler had closed, as company officials threatened to do next month, the city would have received $7 million in taxes. With approval of the tax abatement, which will allow Chrysler to pay 50 percent of its taxes, the city will receive $20.9 million over 12 years while Chrysler will pay $48 million in total taxes, which includes county and school taxes and SMART subsidy. Vanderpool said the gain to Sterling Heights with council granting the tax abatement and Chrysler staying open is $13 million to the city and $27.1 million overall. He said even with the tax breaks, Chrysler remains the largest taxpayer in Sterling Heights. Vanderpool said the Chrysler investment is the largest in the city’s history. Chrysler announced two years ago that SHAP, which opened as a jet engine plant 56 years ago, would close at the end of 2010. The city launched an intensive campaign led by 50 city and civic leaders who convinced Chrysler to extend SHAP’s life to 2012. Now, Chrysler has announced SHAP will remain open indefinitely and that 900 jobs will be added to a second shift while Chrysler spends $821 million to upgrade the plant. Wayne Oehmke, president of the Sterling Heights Area Chamber of Commerce and Industry, said SHAP’s employment of 1,800 people is a benefit to area home builders, retailers, hotels, auto dealers, suppliers and schools. John Lettang, director of fiscal services for Warren Consolidated Schools, said a vibrant SHAP will keep families in the area and more students attending district schools. Christine Johns, superintendent for Utica Community Schools, said SHAP’s vitality is great news for her district. “You need to know that you are not alone in supporting this investment,” she told council members before they approved the abatement. “We are active partners with the businesses that built and sustain the Sterling Heights community, but we also are working with you to create the industries that will emerge in a new economy.” James Jacobs, president of Macomb Community College, said the successful attempt by Vanderpool and Mayor Richard Notte to keep Chrysler alive is an example of how different organizations can work together for the good of Macomb County.
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#1. To: WhiteSands (#0)
Let's see...$850,000,000 divided by 900....$944,444.00 in "tax breaks" per job. What a load of crap!
Clinton and Cuomo are the true bandits who lit the fuse to this economic crisis we're now in. All in the name of getting more minorities in houses: http://libertysflame.com/cgi-bin/readart.cgi?ArtNum=12554
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