State officials, in cooperation with Mercedes, approached Redford Township seeking tentative approval of a tax abatement.
State officials are hoping to put together a package of incentives to lure the luxury auto maker to Redford, but a local match is necessary for state tax abatements to go through.
Mercedes plans to spend an estimated $4.6 million to open the facility and bring in 100 engineers to develop hydrogen and electric power systems.
Long-range plans call for some 250 employees within five years.
Tax abatements, if used properly, are an excellent tool to bring investment and opportunity to a community. They can be disastrous if dispensed with little consideration for the impact on residents, local infrastructure and the environment.
In this case, the building sits in an industrial area that is well-suited for hi tech research and development. Research is less intensive than manufacturing so the impact on local services shouldn't be a major concern.
Granting tentative approval does nothing but get the formal discussion started. With that comes a detailed proposal that should shed more light on the plans for the site.
Township officials should then do their homework to make sure such a facility wouldn't adversely affect the environment or endanger residents.
Only after those issues are resolved should approval of a tax abatement go forward.
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