Detroit set to land 500-job parts plant at AMC site, Duggan says
Washington – Detroit Mayor Mike Duggan said Wednesday that the city is “on the verge of setting up” a 500-job auto parts plant on the site of the former American Motors Corp. headquarters site. on Plymouth Road, on the west side of Detroit.
“We’re about to land another 500-employee parts plant, and what the feds have done has given us a whole slew of tools to bring jobs – good-paying jobs – back to the city,” Duggan said of AMC’s old site. “We are in the process of demolishing the 40-year-old abandoned building there. We will have another parts factory there, and we are in talks with several other manufacturers.”
Duggan spoke to The Detroit News after meeting with Biden administration officials at the White House about how the city spent pandemic relief funds from the US bailout and the benefits of the recent legislation to fund clean energy, infrastructure and domestic manufacturing of semiconductor chips.
The mayor wouldn’t share any further details about the ongoing deal for the 500 jobs at the former AMC site, but Crain’s Detroit last month reported that General Motors Co. was in talks to become the tenant of a new 761,000 square foot building (or two smaller buildings) once the AMC building is razed by developer NorthPoint.
General Motors did not immediately respond to a request for comment on Wednesday.
Duggan spokesman John Roach said he expects there will be an announcement “in the near future” regarding the project.
New laws recently signed by President Joe Biden creating federal incentives for clean energy and semiconductor production coupled with the availability of federal demolition funding have helped make Detroit more competitive in attracting jobs and businesses. , Duggan said.
“We’ve gotten really good at packaging, and I just pitched to a California manufacturing company that was looking at 1,000 jobs last week, and I showed them how all the bills benefit (them) if you come to the city of Detroit” , Duggan said. “You know, seven or eight years ago, no manufacturing company was looking to Detroit. We hadn’t had a new plant for 20 years. And now we’re buying one every six months.”
He gave the other example of the installation of the Lear supplier which is expected to create 450 jobs on the site of the former Cadillac stamping plant on Detroit’s east side and manufacture parts for GM’s Factory Zero assembly facility.
Part of the difference, the mayor said, is now having the resources to clean up industrial sites, using ARP and other funds.
“When you get a manufacturer looking to make a decision, and they have two cornfields and a site in Detroit with a 30-year-old abandoned factory that needs to be emptied first – we were put at a competitive disadvantage. “, Duggan said. “Now we have the resources to clean up these sites. All I need is a level playing field, and we will win.”
The city of Detroit has $95 million budget from the ARP State and Local Fiscal Recovery Funds for blight remediation and commercial and industrial demolition, which the White House says is an eligible use of the funding.
Detroit received $826.7 million and the State of Michigan received $6.54 billion through ARP. Funding could be used for direct response to COVID-19, by strengthening public services or investing in “long-term growth and opportunity”.
The city approved a spending plan last year, that included $250 million to maintain city services and make up for shortfalls; $105 million for job training and mentoring; $50 million for public safety; $45 million for Internet access for low-income residents and more.