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Fiat Chrysler Expansion Community Benefits Update

Fiat Chrysler Expansion Community Benefits Update

In February, Mayor Duggan announced the proposed expansion of Fiat Chrysler on the city’s east side. Due to the size of the project and the use of public tax incentives there must be a Community Benefit process as defined by Detroit’s Community Benefit Ordinance,the first of it’s kind in the US. 

Where are we at in the process?
Meeting 1 Project overview and intro to CBO Process. 
Meeting 2 Resident vote on NAC.
Meeting 3 NAC appointments were announced, Detroit Economic Growth Corporation presented on local Tax Incentives only, expanded FCA presentation.
Meeting 4 NAC members presented recommendations for projects and other opportunities to be included in the CBA.

Neighborhood Advisory Council (NAC)

Residents voted for
Rhonda These
Michelle Jackson
City Council Members appointed
Jerry King
Juliette Okotie-Eboh
Jay Henderson
Planning and Development appointed 
Darnell Gardner
Henry Williams
Curtis Perry
Thomas Hardiman

FCA has shown up unprepared
– FCA has failed to state to community ALL of the public incentives they have received or public incentives they have applied for including Detroit local incentives, State of Michigan, and possibly from the federal government. MEDC: https://www.michiganbusiness.org/services/incentives-and-taxes
– FCA has failed to bring to the table many items that are needed like an Environmental Impact Study and a plan for traffic.

Michigan: Leader in Mega Tax Deals to Corporations
Good Jobs First considers deals that include more that $50 million in tax subsidies ‘Mega Deals’. Michigan is ranked #3 in the nation with  Mega Deals totaling $15.4 billion! Of 399 Mega Deals nationwide, FCA’s  $1.3 billion deal in 2010 for the Sterling Heights plant ranked #15.
www.goodjobsfirst.org/megadeals

This is why we need to know how big of a tax deal FCA is asking from the state of Michigan for this proposed expansion.

FCA’s History of Taxpayer Support
In 1977 Chrysler received a bailout with a $1.5 billion loan that the taxpayers via the US government were the co-signers on. This was a good investment and taxpayers made money on the deal. But, remember the taxpayer bailout of Chrysler in 2008?

Public Investment Borrowed $12.5 billion
Paid Back to Taxpayers $11.2 billion
Taxpayers Lost              -$1.3 billion
Date Bailout Ended May 2011
https://www.thebalance.com/auto-industry-bailout-gm-ford-chrysler-3305670

FCA, remember taxpayers invested in you when the chips were down. Now is the time for you to match our commitment. The community deserves a strong Community Benefit Agreement (CBA) with you!

Get Involved!
– Attend the weekly meetings at UAW, 2600 Connor St. Wednesday’s at 6:30pm until the end of April.
– Call for FCA to share information on ALL the public incentives they are seeking for the expansion.