Boston, MA 10/22/2013 (wallstreetpr) – The automaker General Motors Company (NYSE:GM) is pushing for the renewal of its 2011 tax abatement for its proposed paint facility in Fint, put at the value of $125 million. The facility is expected to have ground coverage of 850K in square-foot.
This tax abatement is being asked under the Industrial Facility Exemption Certificate. The proposed location of this paint facility is on Van Slyke Road, according to City Flint officials. This request is due for discussion tomorrow Wednesday, October 23, at the Flint City Hall. GM representatives, including the spokesman are expected to be in the meeting.
What does the Industrial Facilities Exemption Certificate mean to GM? This is basically kind of a 50% tax break for the automaker on the value of the potential facility. It means, thus in figures, that if the abatement request is approved, GM would pay roughly $2 million in property tax for its $125 million proposed paint facility in Flint in the course of the first year.
Already GM has existing tax abatement for the paint facility in Flint, but that tax break is expiring by 2014. So the company is seeking a renewal of the same and the renewal request requires the formality of discussion at the city council regular meeting.
The reason GM is seeking renewal of this tax leave is that its initial plan over the facility failed to take off in the duration allowed by the earlier secured Industrial Facilities Exemption Certificate.
Under the renewed tax abatement, GM is expected to start work on the facility by January 2014 and get it fully operational by December 2016. If completed, the Flint facility would be the automaker’s most modern paint facility today. The facility in Flint had earlier indicated possibility of creating about 50 new jobs in the city.
There is an apparent rush to get this tax abatement through ahead of the tax abatement deadline that comes before October 31.
GM, the $52.69 billion automaker finished Monday’s trading scathed, going down 1.09% to closed $35.50.