Chrysler Invests $900 million in Dundee
Dundee Village Council members approved a development agreement with Global Engine Manufacturing Alliance (GEMA) for a second engine plant, at their Tuesday, Feb. 17 meeting.
Council also learned that GEMA will locate its world headquarters in Dundee. The world headquarters building will be located in front of the plant, and will employ 25 to 28 full time employees.

Tom Russow, village attorney, said Dundee was selected as the location for the plant over Kenosha, Wisconsin and South Bend, Indiana.

Also attending the meeting were Al Pope from Chrysler Group, and Bruce Baumbaugh, manager of the Dundee engine plants.

“The new plant is well underway,” said Mr. Pope. “We told the village when we came here that there was potential for added capacity. The village was very interested.”

Mr. Baumbaugh said one wall of the existing plant was taken down, and the new plant will be built next to it.

“It will be approximately 1 million square feet and represents an investment of $900 million total,” he said.

Mr. Baumbaugh said the finished plants will be among the most competitive in the world, with about 600 people making 840,000 engines per year. Production will be driven by the market. The second plant is expected to begin production about a year after the first plant does. So far, eight employees have been hired. The plant is hiring through the Michigan Works program.
“Your council and leadership worked awfully hard to draw this in,” said Mr. Pope. “It’s virtually a $1 billion investment from a Fortune 500 corporation.”

Mr. Pope said that since GEMA is a brand new business, government regulations are that an employee union not be established when the plant opens. However, when a certain number of employees are working, a union can petition to come in and have the workers vote to join it.

“There is a letter of understanding with the UAW, so they know that. It’s out of our control; it’s up to the population of the plant,” said Mr. Pope. “But the president and CEO indicated that he would do whatever was possible to make sure these are UAW jobs.”

Attorney Tom Russow said about 90% of the development agreement was the same as for the first GEMA plant. There is a 12-year property tax abatement. Some tax money will be captured in an LDFA (Limited District Finance Authority) to pay for electrical improvements and, most importantly, the village will design, build and maintain an industrial pre-treatment facility for the plant.

The pre-treatment facility will accept the industrial wastes and clean them to the level of household waste, that then will be transferred to the new $8 million municipal wastewater treatment plant for final treatment before being released into the River Raisin. The water that goes into the river will be cleaner than water already there, according to village engineering firm, Arcadis (previously Finkbeiner, Pettis and Strout).

The village agreed to retain Arcadis to design the new pre-treatment plant, for $50,000. The plant is expected to cost $2 million. It’s possible that the pre-treatment plant also could serve other industrial sites near GEMA.

The plant will be landscaped in a Michigan prairie style with native grasses and plants. It is designed to be low maintenance, and require little water. The landscaping is designed by a team from Michigan State University, which won a design contest and a $10,000 prize.

The Village also will repay a previous loan to DaimlerChrysler out of the new bonds, at a favorable rate.

The LDFA will capture about 80% of the property taxes, with 20% going to other taxing units, including the township and local school district’s bonded indebtedness. Monroe County and Monroe County Community College agreed to have their taxes captured.

Council will further discuss the bonding in March. The bonds are expected to be repaid over a 20-year period, and may be paid off early.