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SG-W:/ Power Plant Economics



The state doesn't normally give tax abatements, the local government does.
State involvement usually is through MEGA, which requires the local government
to grant a tax abatement before it will provide tax credits, etc. So, the impact
locally will pronbably be:

50% abatement on all Township taxes [including those at the county level, so all
Washtenaw county taxpayers are impacted to some degree].  If the Township only
levys a mill or two, this might not be much money either way.  Washtenaw County
would probably be more affected by the local abatement.

The local school district will only receive tax revenues directly from this
project if they levy an enhanced millage.  Otherwise, school taxes go to the big
pot in Lansing where they are redistributed according to the state aid formula.
School taxes can not be waived by a local abatement but the state does have the
option of waiving school taxes.  They might get money to pay for building bonds
but I'm not 100% sure on that.

I would guess that most of the money is going to be going to Lansing in the form
of school taxes [6 + 18 = 24 mills] which will trickle back down locally from
the School Aid money.  The next big winner will be the state through various
business taxes.  The Township will probably get a little of this money, less now
with the abatement, more later when the abatement ends.

Andrew Mutch
Novi


> Some interesting economic tidbits: The project would get a 50% tax
> abatement from the state for 12 years and would bring in $3 million in
> annual tax revenues to the state, township and school district. I don't
> know how that would be divied up. The projected life of the plant is 30+
> years.



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