©2016 Michigan Economic Development Corporation

Up to 3,800 Ford Jobs Retained in Dearborn

Friday, November 03, 2000

John Truscott
(517) 335-6397

The MEDC worked with Ford Motor Company by providing an incentives package that includes the first-ever approved Michigan Economic Growth Authority(MEGA) Brownfield Tax credit for obsolete property.  The package also features a retention MEGA Single Business Tax credit, funds for a Michigan Technical Education Center (M-TEC), an abatement of the State Education Tax and job training assistance.

The incentive package was designed to attract further investments by Ford Motor Company at the Rouge Center to retain at least 2,900 jobs at the facility and potentially up to 3,800 jobs based on product volume. The project would involve an investment by Ford of more than $1 billion.

“Ford’s plan to rehabilitate the Rouge Facility with a state-of-the-art manufacturing building will retain thousands of Detroit area jobs and revive the aging Center that, without Ford’s investment, may have become an unusable piece of real estate,” said Engler.

The approval of the incentive package brings Ford one step closer to redeveloping its Rouge Center.   Proposals include construction of a new assembly plant composed of a body shop and final assembly facilities.

“I’ve been pleased to support Ford Motor Company’s plans to redevelop the Rouge Plant through the Heritage Project, committing my efforts and that of my administration to effect this dramatic transformation,” said Dearborn Mayor Michael A. Guido.  “This support follows the city’s historic pattern of consistently and aggressively assisting in Ford’s redevelopment efforts.”

According to an economic analysis done by the University of Michigan, in addition to retaining Ford employment at the Rouge Center, if this projectis approved and fully implemented, 12,648 spin?off jobs would be retained.
A key feature of the MEDC incentives package is a MEGA Brownfield tax credit, approved today by the MEGA board.  The MEGA board recommended a credit for 10 percent of the eligible investment in the potential Rouge Center Redevelopment project up to $30 million over 10 years.
The amendment to the Brownfield Redevelopment Financing Act increases the maximum Single Business Tax credit from $1 million to $30 million, allows the credit to be given to functionally obsolete, blighted and contaminated property in 88 core communities.

The package also includes a MEGA Single Business Tax credit worth an estimated $108.7 million during the next 20 years.  MEGA, which is administered by the MEDC, is used to promote high quality economic growth, job creation and retention in Michigan.

In addition, the incentives package includes $5 million in funds for a M-TEC, an abatement of the six-mill State Education Tax for 12 years with a value estimated at more than $9 million and job training assistance valued at $3.8 million to train the employees at Ford’s Rouge Center.

This project will provide more than $1.4 billion in revenue to the state over the life of the agreement, resulting in a net positive gain for the state of more than $1.3 billion, after the MEGA credit.  The projectis expected to generate more than $17.8 billion in personal income during that time.

“Most companies might prefer to relocate rather than make a major investment in an 83-year-old site; but we believe this is an important opportunityfor our employees and our community,” said Jim Padilla, group vice president, Ford global manufacturing.  “We are delighted at the level of cooperation from the State of Michigan.”  Padilla noted that the project is still contingent upon completion of incentive discussions with the City of Dearborn and Wayne County.

Ford is the world’s largest producer of trucks and the second largest automotive manufacturer.  Ford sells vehicles in more than 200 countries around the world and has manufacturing facilities on six continents.

The Michigan Economic Development Corporation works in partnership with local communities and Michigan businesses to retain and expand jobopportunities and improve Michigan’s overall business climate.