City tries to salvage Chrysler expansion deal
Thu, 29 Sep 2011 21:39:57 GMT —
Toledo's City Council is trying to keep an expansion project with Chrysler intact, despite learning Thursday that the company is trying to cut the valuation of their current facility by more than half.
The news comes just weeks after the city and local school officials approved tax incentives and cuts in the hopes of securing a deal with Chrysler to pursue its expansion plans in Toledo.
According to figures provided by the Office of the Mayor, the current valuation of Chrysler TMs Toledo North Assembly Plant facility is $169 million dollars.
However, the Lucas County Board of Revision has received a complaint from the automaker seeking to reduce that valuation to $66 million.
During the City Council TMs economic development meeting, Deputy Mayor of External Relations Tom Crothers said Chrysler has every right to do that.
Crothers reasoned that the original agreement reached between Toledo and Chrysler to build the North Assembly Plant did not require the company to set a static valuation.
If approved, however, the devaluation would cost the city's general fund up to $2.5 million because Chrysler TMs tax payments are calculated using the valuation.
According to Crothers, Chrysler TMs tax payments are used to repay bonds issued when the plant was built.
Crothers adds the city already has a $4.1 million outstanding balance on those bonds.
Local officials are now hoping they can come to a valuation agreement that still makes the project a win - win situation for both groups.
While the negotiations at this juncture are not finalized|.we have reached an understanding, said Crothers.
The Deputy Mayor of External Relations also told council members that several meetings have been set, with those involved in negotiations, to come to a resolution.
Until an agreement is reached, local officials have withdrawn several proposed tax cuts offered to Chrysler on the land they hope will be used for the proposed expansion.
What do you think about Chrysler's request to have their valuation decreased? Do you think its needed to keep the company in Toledo? Or do you consider it a greedy request? Sound off below and on our Facebook Page.