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Chrysler to Build New $1.2 Billion Assembly Plant in Toledo

28 July 1997

Chrysler to Build New $1.2 Billion Assembly Plant in Toledo

    COLUMBUS, Ohio, July 28 --  Governor George V. Voinovich
today expressed his extreme gratitude for Chrysler Corporation's
decision to locate its new Jeep(R) assembly plant in Toledo.  The $1.2 billion
project is expected to retain 4,900 jobs at the company's current
manufacturing facility in Toledo.
    "Today's announcement not only signifies Chrysler's intent to renew its
commitment to Ohio, it also validates the company's faith in Ohio's business
leadership and the highly skilled workforce at its Toledo facility," Governor
Voinovich said.  "Chrysler's decision to build this facility in Toledo is a
direct result of state and local officials rallying their efforts to maintain
Chrysler's presence in Ohio, and more importantly, the city of Toledo.  I want
to commend Mayor Finkbeiner and Don Jakeway, Ohio Director of Development, for
pulling their teams together to develop a comprehensive assistance package
that met Chrysler's needs to move this project forward in Ohio."
    This announcement came as a result of Chrysler's decision to replace its
current antiquated facilities in Toledo which began operations at the turn of
the century.  Chrysler will build its new Jeep manufacturing facility at the
Stickney Avenue site in the city of Toledo and will retain its 4,900 employees
at both of its facilities once the new plant is completed.  The company had
considered several other states, including Michigan for this project.
    The State of Ohio has offered Chrysler $6 million over a three year period
from the Ohio Industrial Training Program, an Investment Tax Credit valued at
$96.6 million based on Chrysler's projected investment in machinery and
equipment and a Brownfield Site Clean-up Tax Credit valued at $1.5 million.
The state has also offered the City of Toledo the following to assist with
this project: a $10 million low-interest loan at an interest rate of 4% for 20
years to offset the cost of eligible infrastructures; a $4.5 million grant
from the Road Work Development Account to assist with eligible public road
improvements; a $4.5 million grant from the Business Development Account to
assist with eligible on or off-site infrastructure costs associated with the
project; and a $1 million grant from the Urban and Rural Initiative Program to
assist with acquiring, preparing and clean-up of the site for economic
development.
    In addition, the Ohio Department of Transportation will provide $2 million
and the Ohio Rail Development Commission will provide $750,000 for the
project.

SOURCE  Office of Governor George V. Voinovich