FCA to invest $4.5B in 5 Michigan plants, create 6,500 jobs [[5,000 in Detroit)

[Atticus]

So the The City of Detroit gets a NICE BIG FAT yearly TAX Check
- so the City can advance Infrastructure, Services, Quality in Life ???

OR does it have to wait 20 years for those Tax Checks only to defer them
for yet another 20 years, in effect getting little out of the entire deal ?

You have to consider the bigger picture though. There are restaurants, grocery stores, auto mechanics, and countless other employers who will be serving the people working at these plants. Those secondary businesses employee people who do pay income taxes, who live in the area and pay sales and [[directly or indirectly) property tax where they reside.

With that many employees, it is safe to say that many of the secondary jobs would not exist if the plant expansion doesn’t happen. I am not denying the fact that in most cases the job total and total benefits stayed don’t live to fruition. And of course FCA and the Economic Development types are going to exaggerate some and paint the best picture possible. But there are a lot of positive benefits that do happen, they are just difficult to properly quantify.

But it works the other way too, where those with a pure free-market perspective often omit [[intentionally or not) many of the residual benefits such a development creates. There is a delicate balance with these projects, and oftentimes no one fully knows how it will shake out. But just because the glass half full people may not always be painting the true picture, it doesn’t mean the glass half empty people are being fully honest as well.

[O3H]

I consider this :

FCA plants deal. This includes tax captures, breaks,
MEDC grants/investment in site prep/land,
a grant from EGLE, job-training funds from TIA
and Detroit's $50.6M for land assemblage.
$311.7 million -- that DETROIT basically gave away.

$300 million it will not see for a very very very long time.
BAD money on an industry that won't be bouncing back.

Feel free to check the news reports - I didn't make up the $311 million

[renf]

The City of Detroit - alone in Michigan - imposes a 5% tax on all utility payments. Presumably, FCA and Ford will be paying substantial Detroit Edison bills to illuminate the new and renovated Jefferson North plants and the renovated Michigan Central Depot. They will also be paying for gas. Will the city immediately collect the 5 percent tax they impose on utility payments?

[O3H]

Since 1979, 267 of the 447 automaker manufacturing plants in the U.S. have been closed, representing 60 percent of the facilities. Of those that closed, 42 percent shut down between 2004 and 2010. Of the 267 closed facilities, 48 percent have been repurposed to new uses or are being repurposed.
Of the 61 automotive manufacturing plants that have closed in metro Detroit since 1979, more than half have been repurposed for a new use.

It's not exactly an industry that is doing wonderful the past few decades.....

[JonWylie]

Since 1979, 267 of the 447 automaker manufacturing plants in the U.S. have been closed, representing 60 percent of the facilities. Of those that closed, 42 percent shut down between 2004 and 2010. Of the 267 closed facilities, 48 percent have been repurposed to new uses or are being repurposed.
Of the 61 automotive manufacturing plants that have closed in metro Detroit since 1979, more than half have been repurposed for a new use.

It's not exactly an industry that is doing wonderful the past few decades.....

So would this technically fall into a re-purpose? Or a new plant?

[O3H]

It falls into an extremely RARE thing - which is why all the fuss over it.
Without the $300 million in incentives, it most probably wouldn't occur.

[Zacha341]

https://www.freep.com/story/money/ca...fs/1146316001/

Thousands sign up for FCA's Detroit job info

Qualifications include [[minimal 45 days marijuana free to pass):

- Pass a drug screen and physical administered before starting work. Marijuana use for any reason [[recreational or prescription) is not permitted. Any applicant who uses marijuana will fail FCA’s drug test, and will be disqualified from the application process.

[O3H]

What will they rush to market, recall, retrofit, re-release next ...hmmm

https://www.kbb.com/ownership/recalls/chrysler/

[313WX]

https://www.freep.com/story/money/ca...fs/1146316001/

Thousands sign up for FCA's Detroit job info

Qualifications include [[minimal 45 days marijuana free to pass):

- Pass a drug screen and physical administered before starting work. Marijuana use for any reason [[recreational or prescription) is not permitted. Any applicant who uses marijuana will fail FCA’s drug test, and will be disqualified from the application process.

You buried the lead, lol.

That being the laid off workers from Illinois will be hired on first, not Detroiters like FCA promised.

[MSUguy]

The interview Detroiters first model has been hugely successful. And I love that they're looking to do this other employers like Amazon.

Fiat Chrysler Automobiles NV has received acceptances from 4,100 Detroiters to work at its new Detroit Assembly Complex, which includes the first automotive assembly plant built in the city in nearly 30 years, Mayor Mike Duggan said Wednesday.
FCA's $2.5 billion investment to expand the former Mack Avenue Engine Complex into an assembly plant and update the adjacent Jefferson North Assembly plant will create 4,950 total new jobs. The Italian American automaker has extended 4,300 offers with the help of the city's Detroit at Work program.

https://www.detroitnews.com/story/bu...nt/6004528002/

[renf]

The Census Bureau most recent estimates of jobs by location is for 2017. In that year, they estimate there were 195,000 jobs in the city of Detroit. If Fiat Chrysler adds 4950 new jobs in the city, the total number of jobs in the city will go back to what it was before the start of the recession in 2008.
The Census Bureau estimated that, in 2017, there were about 50,000 Detroit residents who worked in the city. That will go up by 8% if
Fiat Chrysler hires 4100 Detroit residents. Of course, some of them may move to the suburbs if their income goes up substantially.

We still have a situation in which 74% of the jobs in the city of Detroit
are filled by suburban residents while 71% of the residents of the city who are employed work in the suburbs.

[401don]

The Census Bureau most recent estimates of jobs by location is for 2017. In that year, they estimate there were 195,000 jobs in the city of Detroit. If Fiat Chrysler adds 4950 new jobs in the city, the total number of jobs in the city will go back to what it was before the start of the recession in 2008.

How can you use 2017 stats? You don't think a lot of jobs, mostly service - hotels, restaurants, stadiums, casinos, etc. weren't lost this year?