Detroit City Council approves land deal for Fiat Chrysler plant
DETROIT (WXYZ) — The Detroit City Council approved a proposed land swap deal for a Fiat Chrysler plant on Tuesday afternoon during the regular hearing. The plan passed by a 6-3 vote.
Earlier this month, the city announced it had acquired 25 acres of land that would be necessary for FCA to build the $1.6 billion plant. They had to work out a eal with DTE Energy, the Great Lakes Water Authroity, Hantz Farms and Crown Enterprises, as well as the owners of several smaller parcels of land.
Detroit spent $107.6 million to acquire the necessary land, as well as land swaps using 155 acres of city and Detroit Land Bank authority property. Mayor Duggan says they traded many vacant city owned plots of land with other land owners to achieve a large section of the property.
“I’d like to thank our partners on City Council and members of the Neighborhood Advisory Council for this project for their diligence throughout this process. I’d also like to thank Mike Manley and FCA for their vote of confidence in our city’s workforce and their commitment to give Detroit residents the opportunity to be considered first in the application process for the life of this new assembly plant,” Duggan said in a release.
The application process for the FCA plant will begin in late summer or early fall, according to the city. When FCA opens the applications, Detroit at Work will be where residents can find the latest information, and there will be a four week window for Detroiters to apply early. They must live in the city and also meet FCA job criteria to apply.
Details from the city are below.
Detroit at Work will start holding a series of FCA information sessions across the city to help Detroit residents make sure they meet all the minimum qualification to be hired at the plant. Residents that may not meet all the requirements will be offered assistance through Detroit at Work to help them eligible by the time the early application window for Detroiters begins.
Today, Detroit residents can fill out an interest form at www.detroitatwork.com that will alert them via text when the pre-registration process officially begins.
“This is a historic day for Michigan after we secured the largest automotive assembly plant deal in the country in the last decade – with 6,433 new jobs and $4.5 billion in private investment from FCA,” Whitmer said in a release. “FCA’s investment in five existing plants, as well as plans to build an all-new assembly plant here in Michigan, sends an irrefutable signal that Michigan remains the automotive capital of the world. Today’s announcement highlights the strong bet FCA is making on Michigan’s talent, our manufacturing prowess and our leadership in new automotive technology, including electric and autonomous vehicles.”
The cost will be split between the city and the State of Michigan, with Detroit responsible $50.6 million. That will be funded by uncommitted City of Detroit bond funds, a loan to the Detroit Browfield Redevelopment Authority and $7.1 million from the sale of the Millennium Garage. If the city does not recoup it’s approx. $57.4 million dollar land investment in 30 years, FCA has agreed to reimburse the city.
Detroit has also asked for $57 million in grants and loans from the state of site preparation.
As part of this development deal, there is a significant community benefits agreement. FCA has agreed to create a training program at the local high school and community college. There will be a grant program established for homeowners living in the impacted area. FCA has agreed to prioritize the people who live in the zip code where the new plant is built for internships, training programs and hiring. Anyone living in the city of Detroit will be prioritized next.
Duggan says other land deals with suppliers will follow near the FCA Mack plant. He also said the council has played a big part is assembling and helping to negotiate this deal and he is confident they will approve it.
Fiat Chrysler announced plans to open the new factory in February, provided they were able to obtain the land on which to build it.
The new assembly plant will be built on Mack and St. Jean. This will be the first new assembly plant to be built in Detroit in almost three decades, and will be a $1.6 billion investment. It is expected to bring 5,000 jobs to the city.
In total, the company is investing $4.5 billion into the new plant and five existing Michigan plants, and will create 6,500 new jobs in the metro Detroit area.
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