GM sought tax relief from the city as it reviewed the "business case" for which of its facilities around the world was best suited to place the work.The city council voted unanimously last week to grant two Plant Rehabilitation Industrial Facility Exemption certificates, applied to the Chevrolet building--a 44-year-old facility--and the research and development building, constructed in 1953. The tax certificates will freeze property assessments in those facilities at current rates for 15 years. Two other new abatements at the Technical Center will cut the property tax on new construction by 50% for the next 12 years.

Overall, more than $159 million of the $190-million project qualifies for tax relief. The plan is expected to generate $3.8 million in additional tax revenue for city, county and other tax coffers over the next 12 years. GM, meanwhile, will save between $8 million and $10 million in taxes.

The Warren Technical Center is home to approximately 20,000 GM employees. The 1,020-acre campus is one of two GM global engineering centers in the world.

Earlier this month, GM announced it selected its Powertrain Plant at Nine Mile and Mound to build new six-speed automatic transmissions. A tax abatement for the $350-million project will save GM an estimated $17.5 million over 12 years.

The largest tax incentive ever awarded in Macomb County was approved by Warren officials in 1999 to benefit work at the Technical Center. That series of 10 long-term abatements involved a number of projects valued at $1 billion--the largest single investment in county history.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM Digital Member, you’ll receive:

  • Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.