Marshall city leaders approve tax incentive for Ford plant

MARSHALL, Mich. (WOOD) — A tax incentive offered to Ford as part of the BlueOval Battery Park deal passed the Marshall City Council Monday night.

Ford and the BlueOval Battery Park applied for an Industrial Facilities Tax Exemption Certificate, which essentially cuts the tax rate in half for the building alone. City council documents say the land for the facility will be taxed at 100%. The estimated $900 million in equipment will be taxed at the state level. The tax abatement for 12 years is part of the incentives offered in the Ford/BlueOval incentive package.

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But some opponents of the battery plant say Ford has the money to cover the tax rate in full. One of those residents who pushed back on the vote is Gretchen Esser, treasurer for the Committee For Marshall — Not the Megasite.

“Why can’t they not pay more? They get a special 50% abatement and they can’t afford more to give to the city?” said Esser.

Along with the tax incentives, the mother of two said she’s worried about the environmental impact of the plant.

“I worry about the toxins coming from the plant. I worry about the loss of farmland. I worry about the number of jobs that keep changing,” she said.

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Recently, the state’s environmental agency flagged the site for sediment runoff into the Kalamazoo River. Ford and Marshall development officials say work is being done to protect the waterway.

However, others see a potential with the plant, like Marshall Public Schools Board of Education Treasurer, Matt Davis. He said getting half of the tax revenue is better than none at all.

“That incentive is in place and it’s one of the reasons that Ford chose this site, rather than going to a different location or a different state,” said Davis.

He is also a member of the Marshall Area Economic Development Alliance, one of the plant’s area partners. Davis said this type of incentive is commonly used to bring in outside jobs – and with it, a revenue trickle-down.

“We want jobs because jobs are what feed people, jobs are what gives people the money to live in a quality area,” Davis said.

In an emailed statement, a Ford spokesperson said the tax revenue from the plant will directly support Marshall Public Schools and the Harper Creek School District. The spokesperson said support goes beyond that.

“To date we’ve committed more than $130,000 in donations to Marshall Public Schools for a greenhouse and an industrial-grade basketball hoop replacement at Marshall Middle School, and a motivational back-to-school speaker at the high school,” the spokesperson wrote.

Ford officials add that similar tax incentives encourage economic growth in the state and allow the automaker to advance projects like the battery park.

While the construction crews are still giving shape to the plant, the work on paper continues. The tax abatement request now moves to the state tax commission for final authorization and approval. Esser said she and her group will stay vocal about their concerns with the plant every step of the way.

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