YPSILANTI TOWNSHIP, MI-This area may receive another development, though it will provide energy rather than a new product. The K&M Engineering and Consulting Corp. of Arlington, VA has announced plans to build a $300-million power plant to the township board of trustees.
The company has not submitted any formal site plan, but has given conceptual ideas to the township, says Kevin Kwiatkowski, director of community and economic development for the township.
The plant would generate 560 megawatts to sell raw power to energy plants, said the company, a division of K&M Group of Cos.
Kwiatkowski says the plant would be built on a vacant 20-acre piece of land, bordered by two junkyards, on State Street in the township. K & M has an option on the property, he adds, and the township is awaiting other action before the development canbegin.
“The township is trying to establish an industrial development district to allow the company to seek a tax abatement through the state, under Public Act 98,” Kwiatkowski tells GlobeSt.com.
The township has allowed abatements in the past, Kwiatkowski says.
“We will evaluate the site plan when it is submitted, and the environmental impact,” he says.
The company said it plans to begin operations by 2005.
The K&M plant joins a similar project. Indeck-Niles Energy Center L.L.C. plans to invest more than $570 million to build a new 1,100-megawatt gas-fired electrical generation plant in Niles, MI.
Upon completion, the Indeck-Niles plant will supply 345 kilovolts of electricity to the American electrical power grid and create 209 jobs for Michigan workers.
Tax rebates and other incentives were also used in the Indeck-Niles plant, where a $1.3-million brownfield tax credit was approved by the state. Michigan will also provide the company with a 3-mill state education tax abatement valued at $9.1 million. The city of Niles has offered the company a 12-year abatement worth $6 million.
Recent amendments to the Brownfield Redevelopment Financing Act allow a brownfield authority to capture property taxes for an expanded set of activities, including infrastructure improvements, demolition of structures and site preparation.
Continue Reading for Free
Register and gain access to:
- 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
Already have an account? Sign In Now
© 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.
