The Michigan Economic Development Corp. is offering incentives that include up to $44.7 million over 10 years from the Michigan Economic Growth Authority Job Creation tax credit. The incentive package is based on Kmart keeping 1,500 jobs in Michigan with an average annual salary of $70,000.
Kmart would have to maintain that job level for 10 years to get the annual tax credit. To get the credit, Kmart would also have to demonstrate that it has received a viable proposal to relocate in another state, says Paul Krepps, a spokesman for the MEDC.
"Obviously we want to keep them here," says Liz Boyd, a spokeswoman for Gov. Jennifer Granholm. "That's no secret."
The company also could receive $750,000 in employee training funds, including $200,000 from Oakland County funds.
A Kmart spokeswoman declined comment to GlobeSt.com. State officials have been saying for weeks they are worried the retailer could leave.
The company's headquarters is designed to house about 5,000 employees. After a year-long bankruptcy period, Kmart is down to about 2,000 employees at the home office. Kmart has also shown a willingness to part with property to bring in an infusion of cash. It recently sold dozens of stores to Sears and Wal-Mart.
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