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City Offers $18M Tax Break to Expand GM Plant

WARREN, MI-The city council approves a $17.5-million tax abatement in an effort to lure a $350-million expansion at an existing General Motors plant.

By Dan Heaton | Updated on March 11, 2004

WARREN, MI-Nearly 100 United Auto Workers members from the GM Powertrain plant on Nine Mile at Mound Road roared with applause Wednesday as the Warren City Council unanimously approved a tax abatement for the plant. GM executives are considering the Powertrain plant as a possible location for assembly of six-speed automatic transmissions beginning in mid 2006.

The project cost, including new machinery and plant renovations, is estimated at $350 million. Approximately $220 million would be eligible under state law for an industrial facilities tax exemption that would save the company 50% on new property taxes.

GM would save $17.5 million in personal property taxes under the abatement approved in Warren, while an identical amount would be produced for the coffers of local tax entities during a 12-year period.

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