Detroit acquires 215 acres of land for FCA plant

The most complicated acquisition of the transaction involved acquiring 82.2 acres of land from Crown Enterprises, a company owned by Moroun. The city entered into an agreement with the Moruns to pay $ 43.5 million and exchange 117 acres of land in exchange for the parcel located at 12141 Charlevoix Street. The Moroun property was by far the most expensive, with the city having acquired the remaining 132 acres for $ 4.6 million.

The 117 acres included in the land swap are scattered throughout the city in about 10 different locations, said Mayor Mike Duggan, though without providing details on this. Most of the parcels were lands adjacent to the properties owned by Moroun.

At a press conference Friday night, Duggan said that 208 of the 215 acres of land had been officially acquired. Conrail, a railway company with the last seven acres required, was "on the phone" at the press conference and the transaction is expected to close "shortly".

"We did something that any other city could have tried," said Duggan, evoking the city's efforts to gather nearly 215 acres of land for FCA in 65 days "without the benefit of an eminent estate ".

FCA's plans for the Mack Avenue site are part of a $ 4.5 billion investment in five of its Michigan plants, which will create about 6,500 jobs.

According to the city, the cost of land transactions amounted to $ 107.6 million. The portion of the city, which does not leave the operating budget, totals $ 50.6 million. The remaining $ 57 million will come from government grants and loans. The city is also trading a total of 155 acres of land under the agreement, including 117 awarded to Crown Enterprises and 25 acres to DTE Energy Co.

"We are very proud to be here today to reach this milestone," said Mark Stewart, FCA's Director of Operations for North America. He added that FCA would continue to work with cities and states in the coming days to obtain final approvals. "We are on a very tight schedule."

This came one day after city officials declared in Detroit that they had "substantial" agreements on the 200 acres of land needed for the proposed expansion of the plant. Earlier this week, the administration also announced "significant progress" after the 60-day deadline to collect 200 acres of land for the $ 2.5 billion expansion. The hasty announcement Friday arrived in the last hour for Detroit and FCA.

"If we had passed the day, we would have lost time in the construction schedule, which was essential," said Duggan.

Fiat Chrysler plans to invest $ 1.6 billion to expand its Mack Avenue facility with a new plant and $ 900 million to upgrade its Jefferson North assembly plant, located just opposite Mack's facilities .

Jefferson North, the last remaining automotive assembly plant located entirely within Detroit's borders, completed its construction work in 1991 and produced its first Grand Cherokee in January 1992. The General Motors Co. opened the Detroit-Hamtramck Assembly in 1985, after the city had appealed to eminent powers a predominantly Polish neighborhood for the car factory.

On Thursday, the Committee on Urban Planning and Economic Development addressed issues related to the FCA, including a public hearing on the creation of an industrial development district. The committee also received a zoning change application and a community benefits report.

The committee voted Thursday to send the Industrial Development District application to the entire council with a recommendation to approve.

An industrial development district would pave the way for the FCA to seek tax incentives, said Kenyetta Hairston-Bridges, executive vice president of economic development and investment services for the Detroit Economic Growth Corporation.

The company confirmed this week that it has asked for up to $ 160 million under existing state incentive programs.

The committee also voted Thursday to send to the plenary council a recommendation to hold a public hearing for the zoning of 266 plots in a small industrial district. The parcels – currently located in two-family residential areas, roadside residential areas or business districts – are generally bounded by East Warren to the north, St. Jean to the east, Kercheval to the south and Lillibridge and Beniteau to the west.

The automaker, the city and a neighborhood advisory council reached an agreement on community benefits last week after a series of community meetings. This agreement gives Detroit residents first access to jobs in the plant and $ 13.8 million investment from CFA in workforce training, education, housing and the revitalization of neighborhoods.

On Thursday, the Town Planning and Economic Development Committee decided to keep the proposed community benefits agreement with the committee on May 9, instead of sending it to the government. city ​​council together on Tuesday. Some committee members expressed concern that the agreement would be processed before the city finalized the land acquisition.

City councilor Raquel Castaneda-Lopez said Tuesday at the city council that the vote on the initial land deals that had been presented to them was "premature", considering other land deals, tax cuts and a regime. benefits for the community.

The panel voted 7-2 in favor of these land deals involving Hantz Farms, DTE Energy Co., Detroit Land Bank Authority and owner, Michael Kelly. Castaneda-Lopez and Pro Tem Mary Sheffield voted no.

The known lands acquired for the project include 40 acres of the St. John Street closure, 40 acres of the former DTE Energy Conners Creek generating station, 14.45 acres of leased land of the Great Lakes Water Authority, as well as than land from Hantz Farm and Kelly.