Tuesday, June 14, 2011

Corporate Welfare aka taxpayer funded bribes is OUT of control

The Michigan Economic Growth Authority today approved $23.5 million in tax breaks for four companies around Metro Detroit and a former General Motors plant demolition project in the Grand Rapids area that could create or retain up to 803 jobs.

-- General Motors Corp. received a $10 million brownfield tax credit to retool a site at its Flint Van Slyke complex to retain up to 185 jobs, according to the private-public agency. The incentive helps the Detroit automaker finance a new paint shop in 850,000 square-foot facility and supports the complex's truck assembly operations. The automaker expects to complete the project by 2015 with $417 million of private investment.

-- HP Enterprise Services LLC, a division of the Hewlett-Packard Co., plans to invest up to $4.8 million in its Pontiac facility and create up to 250 jobs during the next five years after receiving a $3.5 million tax credit over seven years. The average weekly wage will be $1,346. HP Enterprise considered Ohio and Texas for the project.

-- Magna Exteriors and Interiors USA Inc., an auto supplier of exterior vehicle appearance systems, received a $1.5 million tax credit over three years to consolidate its operations and create 333 jobs after purchasing Continental Plastics Co., an auto interior components supplier with facilities in Michigan and Georgia. Work would be merged at Continental's China Township and Benzonia facilities, and jobs paying an average weekly wage of $487 would be created as well at an existing Magna plant in Howell.

-- A Dearborn Heights agency got a nearly $70,000 tax break to pave the way for a $1.1 million project to redevelop a vacant gas station on North Telegraph Road in the city as a Tim Hortons eatery. The project is estimated to create 25 to 35 full-time jobs.

-- The Wyoming Brownfield Redevelopment Authority received a $8.5 million tax break to demolish all buildings at the former General Motors Grand Rapids Metal Stamping Plant and prepare the 87-acre site for redevelopment. The project will clean up and redevelop one of west Michigan's largest industrial sites, according to the state.