The Orion Township Board of Trustees granted a $55 million tax abatement requested by General Motors at their meeting last week.
That $55 million is part of a potential $165.5 million investment GM is exploring for the Orion assembly plant, which opened in 1983.
The board approved GM’s request for a three-year construction period (to begin on Dec. 31, 2007) and a 12-year period to follow.
Roughly one-third of the potential $165.5 million investment is eligible for the exemption, under state tax abatement laws. About 50 percent of that $55 million can taxed by the township.
The request from GM is for improvements to their paint/body shop and the possible addition of a new product at the Orion Plant, though what the product is remains to be seen.
‘As our G6 continues to age in the marketplace, we’re talking about an additional product as a way to keep our plant fresh,? said Plant Manager Pam Mader.
The management team present at the board meeting will next present at GM’s corporate level.
‘It’s not an approved project, it’s a project we’re trying to get our board to approve,? said GM’s Regional Tax Manager George Schneider.
‘If approved, Orion Township would still receive an additional $5 million in taxes over the abatement period,? he noted.
A public hearing was held prior to the board’s decision.
United Auto Workers Local #5960 President Pat Sweeney was among a handful of audience members to speak favorably of GM and the abatement.
Sweeney noted that the current sales of the G6 cannot support two shifts at the plant forever.
Longtime township resident James Delavan voiced his opposition to the abatement, saying that if the board could afford to give GM such a big tax break, they should give one to residents as well (his Letter to the Editor appears on Page Six).
The board gave unanimous approval on both the Industrial Facilities Exemption Certificate Agreement and the adoption of a resolution approving GM’s application for a new facility.
‘I see this as an appeal by this management team to partner with Orion Township,? said Trustee John Garlicki.
‘I hope that if you get this investment, you would encourage your suppliers to invest in Orion Township as well,? added Trustee John Steimel.
The plant currently has around 2,700 employees and the investment would secure the jobs of 964 employees as well as add 104 positions at the plant.
Roughly six percent of Orion Township’s population falls under the category of a ‘GM family,? with 141 employees of the Orion plant living within the township.
‘All of us at Orion Assembly appreciate the board’s decision,? said plant spokesperson Rosemary McBride. ‘It’s not only good for the plant, but it’s good for the community as a whole.?
McBride said the action taken by the township is ‘an important piece,? in getting GM to make their final decision, and it enhances the relationship between the company and the township.
‘It provides a staple for years to come for the township as a whole,? she said.
The new abatement will have not influence on a previous abatement that first came to the board in 2001.
‘The other abatement was for a specific project with specific equipment,? Schneider said. ‘This is all additional.?
In comparison to the 2001 visit, Township Supervisor Jerry Dywasuk said this trip by GM ‘went a lot smoother,? adding that Orion’s strong work force lends itself to continued investment on the part of GM.
‘That’s what it’s all about,? Dywasuk said. ‘Families and jobs during this tough climate.?
With regards to the specific product line, McBride said GM would make an announcement when the time comes.
‘We couldn’t even begin to predict a product line in this market,? she noted.