Tech Center plans may add 877 jobs April 6, 2004 BY MARY OWEN
FREE PRESS STAFF WRITER General Motors Corp. has asked Warren for a tax break on a $190-million investment it plans at the GM Tech Center that would keep nearly 1,000 jobs and add 877. "In this kind of economy, that kind of investment is nothing to sneeze at," said Warren Mayor Mark Steenbergh at a Monday news conference to discuss GM's request, which he supports. Even if the City Council approves the tax break, Warren is competing against other locations for the investment, said GM spokesman John M. McDonald. He would not identify other locations, but said some of the jobs that would be moved to Warren would come primarily from Pontiac. GM plans to build two buildings and upgrade a handful of others on its 1,000-acre Tech Center compound between Van Dyke, Mound, 12 Mile and 13 Mile. GM recently finished a $1-billion investment at the Tech Center. GM, the city's biggest taxpayer, won approval in March for an unrelated tax break for a $350-million investment at the city's GM Powertrain Plant on Mound, which could safeguard 518 jobs and bring hundreds more. Warren also is competing for the powertrain project; GM hasn't made a decision yet. Warren, which was forced to cut services in recent months because of reduced state funding, could use more tax revenue. However, Steenbergh said a tax break is Warren's only defence against a global battle over jobs. The council is expected to consider the tax break proposal in May. Tuesday, April 6, 2004 Tax break could save GM jobs Firm plans $190 million Tech Center expansion and renovation to preserve 1,870 positions By Mike Wowk and Ed Garsten / The Detroit News WARREN — General Motors Corp. filed Monday for a 12-year tax break on a proposed $190 million expansion and renovation project at its Technical Center in Warren that could preserve nearly 1,900 jobs. If built, the project would result in the transfer of 877 mostly engineering jobs from other GM locations in Michigan, with many coming from Pontiac, a GM spokesman told Warren city officials. The investment would also allow GM to keep 993 existing jobs at the Tech Center. If the council approves the tax break, Warren would still realize $3.8 million in new taxes from the GM investment, Mayor Mark Steenbergh said. “In this kind of economy, that kind of investment is nothing to sneeze at,” Steenbergh said. “But we need to convince GM to come here. If we don’t, the jobs will likely go overseas.” Dennis Henry, president of UAW Local 160, which represents many of the Tech Center workers, joined Steenbergh at a Monday press conference to urge approval of the tax break. “With this move, (the Tech Center) will be the engineering capital of the U.S. for GM,” Henry said. “This will be a one-stop shopping center (for engineering work) and will help GM make better products.” GM is asking Warren for a tax break to support expanding the GM Tech Center. Even if the Warren council approves the tax break -- it is expected to come to a vote in early May -- there is no guarantee GM will go ahead with the Tech Center expansion project, according to GM spokesman John M. McDonald. "GM is committed to southeastern Michigan, but we're in a globally competitive environment," McDonald said. "So we (need to) make a business case for this project." GM would get a 50 percent tax break on two new buildings to be constructed at the Tech Center if the project goes forward, city officials said. In the case of two existing buildings to be renovated, GM would continue paying the current, lower taxes for 12 years. The $190 million project, with $160 million eligible for tax abatements, would include renovations at the Chevrolet building, converting office space into a preproduction shop and overhauling research and development labs and the GM photographic building. "The buildings are basically obsolete," McDonald said. "Typically, we tear them down. We're trying to maintain those facilities and keep them on the tax rolls." In February, the Warren council unanimously approved a 12-year, 50 percent tax abatement as an incentive for GM to invest $350 million in its Warren transmission plant at Nine Mile and Mound to build a new six-speed front-wheel drive transmission developed in conjunction with Ford Motor Co. Production would begin by mid-decade. Building the new transmission there would preserve at least 518 jobs. On March 17, Gov. Jennifer Granholm announced the approval of $10.4 million in single business tax credits over 20 years as an additional enticement. GM hasn't decided where it is going to build the transmission, McDonald said. | 
