Ford plans battery center in SE Michigan

[JonWylie]

Ford, in step toward making battery cells, plans battery center in SE Michigan

Ford Motor Co. plans to open a new global battery center in southeast Michigan, marking a step forward on its path to one day manufacturing its own battery cells for a coming wave of electrified vehicles.
The Dearborn automaker on Tuesday announced the creation of "Ford Ion Park," what it describes as a "global battery center of excellence" that will be built at a to-be-announced location in southeast Michigan, near other facilities where Ford employees develop, design and build products tied to electrification.

[Gistok]

I don't expect Detroit to be in contention for this... but doesn't Ford still have a lot of land in their Fairlane sprawling complex? If so, why not just put it there.

[313WX]

I don't expect Detroit to be in contention for this... but doesn't Ford still have a lot of land in their Fairlane sprawling complex? If so, why not just put it there.

Based on the part that says "near other facilities where Ford employees develop, design and build products tied to electrification," it probably will be near the electric vehicle plant they're building at the Rogue complex.

[rbdetsport]

Why would Ford not want this to be near MCS? Why not focus the tech synergy in one place? Corporate and general design can stay in Dearborn; Manufacturing at Rouge specifically; tech at MCS!

[JonWylie]

WXYZ is saying it will be in Allen Park, although I don't see on a source on that.

https://www.wxyz.com/news/ford-inves...-in-allen-park

[Honky Tonk]

That might be what they're building at Oakwood and Village roads, kiddy-corner from The Henry Ford. They're pile-driving down to bedrock. [not the Flinstone's 'burb]

[angry_fred]

WXYZ is saying it will be in Allen Park, although I don't see on a source on that.

https://www.wxyz.com/news/ford-inves...-in-allen-park

Existing [[new) battery center is in Allen Park.

It would be nice to see this expanded battery center set up shop in corktown, but I'm not holding my breath. It might happen eventually, but I doubt ford is willing to wait an entire year to get a lab up in running downtown when they can just slap together a steel building in Dearborn and move in by the middle of the summer

[Richard]

Existing [[new) battery center is in Allen Park.

It would be nice to see this expanded battery center set up shop in corktown, but I'm not holding my breath. It might happen eventually, but I doubt ford is willing to wait an entire year to get a lab up in running downtown when they can just slap together a steel building in Dearborn and move in by the middle of the summer

It probably has more to do with the voter approved community benefit program,passed in 2016.

The Community Benefits Ordinance applies when a development project:

• Is $75 million or more in value
• Receives $1 million or more in property tax abatements OR
• Receives $1 million or more in value of city land sale or transfer

https://detroitmi.gov/departments/pl...fits-ordinance

Things sometimes have a habit of coming back to bite one in the butt.

You will not see any investments over the 75 million in the city.

Anything game changing requires a lot more then that.

Until you guys repeal that,you are taking yourself out of the picture of future investment that other cities are more then happy to pick up.

Take for instance the P building or Packard ,nobody is going to flat out buy them and piece meal the rebuild or rehab while staying under the $75 mil cap,it would take to much time,just as nobody will buy them based on adding $25 million in social programs.

[Pat001]

Glad to know it’s going to be in Michigan and not Mexico or China.

[ndavies]

It's not the community benefits aggreement that placed ION park in Allen Park. It's the other assorted test facilities Ford has in Allen Park that placed it there. It makes for economic synergy to have these engineering and test facilities near each other.

Also, Ford Land probably already owned the land it will be built on.

[JonWylie]

It probably has more to do with the voter approved community benefit program,passed in 2016.

The Community Benefits Ordinance applies when a development project:

• Is $75 million or more in value
• Receives $1 million or more in property tax abatements OR
• Receives $1 million or more in value of city land sale or transfer

https://detroitmi.gov/departments/pl...fits-ordinance

Things sometimes have a habit of coming back to bite one in the butt.

You will not see any investments over the 75 million in the city.

Anything game changing requires a lot more then that.

Until you guys repeal that,you are taking yourself out of the picture of future investment that other cities are more then happy to pick up.

Take for instance the P building or Packard ,nobody is going to flat out buy them and piece meal the rebuild or rehab while staying under the $75 mil cap,it would take to much time,just as nobody will buy them based on adding $25 million in social programs.

There's literally no indication that the CBO has any affect on this decision, plus we don't even know where they are building yet, stop making stuff up and sidetracking the conversation. Detroit has gotten plenty in investments that could have gone to the suburbs even with the CBO.

[Henry Whalley]

My guess is that Ford will locate its plant in a place it can pollute with impunity so probably not Birmingham.

[Richard]

There's literally no indication that the CBO has any affect on this decision, plus we don't even know where they are building yet, stop making stuff up and sidetracking the conversation. Detroit has gotten plenty in investments that could have gone to the suburbs even with the CBO.

Its not sidetracking it’s about a company looking to invest while providing high paying jobs.

Yes there has been lots of investment in Detroit when it comes to places for people to sleep and eat,most of those commanding high rates.

Outside of FCA name an equal amount of farrow buildings purchased strictly for reuse as employment centers in the last 5 years.

Or projects announced outside of the CBD as employment centers.

Most of the investments have been in providing space for people to sleep,why ?

Because they can offer a percentage of “affordable housing” units in order to offset the CBO requirements,then convert them to market rate in 3 years.

What happens 3 to 5 years down the road when those people occupying those units are now priced out and no good paying job in order to pay market rate ?

They will leave,but you are right,keep doing what you are doing as it seems to be working out pretty good with one employment center opportunity opening up in 5 years.

Not to even mention the construction costs offset by the fed funds,that makes them feasible in the first place.

Another 50 years and the people that still live in the city may just have a job that pays well enough to live there.

Do you actually believe a company is going to flat out say - hey we choose this place because of CBO,they are still getting tax incentives that you will pay for,but not be able to reap the rewards city wise,so they at least are not going to cut off their noses to spite.

[JonWylie]

Its not sidetracking it’s about a company looking to invest while providing high paying jobs.

Yes there has been lots of investment in Detroit when it comes to places for people to sleep and eat,most of those commanding high rates.

Outside of FCA name an equal amount of farrow buildings purchased strictly for reuse as employment centers in the last 5 years.

Or projects announced outside of the CBD as employment centers.

Most of the investments have been in providing space for people to sleep,why ?

Because they can offer a percentage of “affordable housing” units in order to offset the CBO requirements,then convert them to market rate in 3 years.

What happens 3 to 5 years down the road when those people occupying those units are now priced out and no good paying job in order to pay market rate ?

They will leave,but you are right,keep doing what you are doing as it seems to be working out pretty good with one employment center opportunity opening up in 5 years.

Not to even mention the construction costs offset by the fed funds,that makes them feasible in the first place.

Another 50 years and the people that still live in the city may just have a job that pays well enough to live there.

Do you actually believe a company is going to flat out say - hey we choose this place because of CBO,they are still getting tax incentives that you will pay for,but not be able to reap the rewards city wise,so they at least are not going to cut off their noses to spite.

Until you can provide some sort of data that shows the CBO has had a negative impact on investments, there's no reason anyone should believe the assertion.

[ABetterDetroit]

Its not sidetracking it’s about a company looking to invest while providing high paying jobs.

Yes there has been lots of investment in Detroit when it comes to places for people to sleep and eat,most of those commanding high rates.

Outside of FCA name an equal amount of farrow buildings purchased strictly for reuse as employment centers in the last 5 years.

Or projects announced outside of the CBD as employment centers.

Michigan Central Station
https://www.freep.com/story/money/ca...ay/7374703002/

Detroit Hamtramck Assembly
https://www.freep.com/story/money/ca...ck/7103468002/

Hudson Site
https://www.freep.com/story/money/bu...it/6938527002/

Here is a 4 Billion worth off the top of my head.

You are really missing the Non-Detroit board pretty bad these days eh Richard? Stupid made up crap can get you in deep water right quick over on this side...

[Gistok]

Based on the part that says "near other facilities where Ford employees develop, design and build products tied to electrification," it probably will be near the electric vehicle plant they're building at the Rogue complex.

Sorry Sparky... I didn't see their highlighted text as a link to view... but I guess I was right after all... part of their sprawling complex that is mostly in Dearborn, but also has portions in Allen Park...

[Richard]

Michigan Central Station
https://www.freep.com/story/money/ca...ay/7374703002/

Detroit Hamtramck Assembly
https://www.freep.com/story/money/ca...ck/7103468002/

Hudson Site
https://www.freep.com/story/money/bu...it/6938527002/

Here is a 4 Billion worth off the top of my head.

You are really missing the Non-Detroit board pretty bad these days eh Richard? Stupid made up crap can get you in deep water right quick over on this side...

okay gotcha

A auto plant that was already producing autos with employees changed the name.

Deep pockets Ford
Deep pockets Mr Gilbert
Deep pockets GM

Doing the same thing that is subject to change with the wind with devastating results,as past experiences have already proven.

How many more deep pockets you got left?

But it is made up crap by me,I did not write the last 50 years of Detroit,it is not on me to learn from those mistakes.

So MTS moves or adds 5000 jobs,that ought to cover the other 595,000 residents in the city.

You keep blaming others,me and slumlords who own buildings that could become viable employment centers while creating a strong tax base and encourage others to move back or there,but it is my fault that you approve of creating a situation that makes it not feasible to save what is left and you are pinning all your hopes on something that helped destroy the city in the first place.

Yep you are right,make it all about bad me,I will bet that is some comfort for those outside of the downtown,or those waiting for a viable transit system or those straddling property tax burdens that out value their homes.

What gets you in deep water on this side is no different then the other side,you could have responded without the little personal jab,but you threw it in there in order to give your response some credibility.

I do not need credibility,because you cannot erase history,but you can stop from repeating it.

So outside of your list of those who have already been in the city for decades,for a total of 4 out of 600,000,how many investors outside of the city have bought properties in order to invest millions in order to create a diversified employment base have invested in the city of Detroit sense 2016?

You guys keep using the argument of nobody has told you they are not investing because of policies,guess what,they are but you are not listening.

10 + years later places like Packard,Kelvinator,Fisher body,Russel center and on and on,still the same as they were.

You told Ford that they have to have community investment in order to proceed,then you turned around and gave them $250 million in tax credits in order to do it.

So drop the attempt at socializing capitalism for the chosen few,o wait that only applies to outsiders.

The one thing I can tell you for a fact,sense even before the bankruptcy,nothing has changed in Detroit when it comes to outsiders investing in the city,that door remains closed,that’s your choice either blame Richard or open the door.

When the auto manufacturers set up in the south,did they do so because the support was already in place,or did the support follow them?

If MTS is being converted and adding 5000 jobs for advanced engineering for electric cars,does that not put a lot of distance between support teams?

In this case you are talking about 150 employees,but the actual plant that would have been employing locals at a good wage,went to Tennessee.

Why?

They posted an article recently about how expensive it was to ship the batteries across county in order to install,but yet here we are.

[renf]

It would be very informative to see convincing data showing that locations with Community Benefits Agreements have lost major investments when they offer tax abatements. Do such data exist?

[Richard]

Detroit is the only city in the county with a CBA in effect so on the National stage there is no comparison.

One will not find companies that will publicize - We did not choose Detroit because of their CBA policy,because the city would have been removed from desirable location check list from the start.

There are variations of the policy used to control sprawl in other cities,IE: if you want to build a subdivision then you have to kick in for the extra traffic light,water and sewer extension or turning lane extension.

The CBA kicks in at $75 million,apartments and large rental properties do not count because they use fed HUD funds in order to offset construction costs,but they all have stayed under the cap.

What it does for the large sqft industrial buildings that are sitting empty is remove them from the equation and seals their fate.

So how does one tell if the CBA decision is a factor in disinvestment,one way is to take into consideration that we just went through over four years of an economic scale that saw businesses doubling manufacturing space across the country.

Then there was Detroit with an abundance of empty factories and land along with a workforce geared towards medium and low level skills but yet the same spaces are still sitting vacant 20 years later.

Companies like the automobile manufacturers and Amazon being receptive to CBA agreements really does not matter because all they are going to do is invest the same amount of funds into charitable organizations,for the tax relief,that they were going to spend anyways .

What was removed from the equation is the empty buildings and the average size business looking to expand.

So it was implemented in 2016,the question still remains,how has it benefited the city when it comes to creating a diverse economy and increased outside investment?

[renf]

President Trump signed legislation creating Opportunity Zones including one in Detroit. These are similar to the Empowerment Zones that were proposed by Representative Jack Kemp and approved in the Clinton years. Firms obtain substantial federal tax reductions if they invest in designated census tracts with poverty rates about 25%. Does anyone have data about investments in the Empowerment Zones and Opportunity Zones in Detroit and the surrounding suburbs?
Thanks