By Charles Sercombe
Hamtramck’s financial picture brightened a little bit this past week.
But don’t get your hopes too high.
Last week it was announced that GM won’t shut down its Poletown Plant this coming June, and will continue production there for at least another seven months.
GM says it still needs to produce the Chevy Malibu and the Cadillac CT6 until at least January of 2020.
But the extension is deceiving.
According to Crain’s Automotive News, GM still plans to shut down the plant after the extended run.
This could still be some good news for Hamtramck.
GM pays the city about $800,000 per year in lieu of property taxes. A small portion of the plant is located on the Hamtramck side of the Detroit border.
That payment, however, is made only if the plant is in production. At the very least, the city could collect a good portion of that amount in its next fiscal year, which begins July 1.
City officials have been bracing for a major hit to the city’s budget, and are looking at deep cuts to spending.
The Poletown Plant was one of five north American plants slated for closure this year.
March 1, 2019