{{featured_button_text}}

NORMAL — Rivian Automotive's pending deal with the town of Normal and other local taxing bodies has similarities to a deal the company made in Michigan a year ago.

On Nov. 24, 2015, Michigan Economic Development Corporation published an agreement with Rivian requiring the company to invest up to $29.5 million in the city of Dearborn and create 174 jobs in exchange for a $1.77 million grant.

"With incentive assistance the project can close the gap between competing locations and will ... move forward in Michigan with the establishment of a research and development facility," according to the MEDC, "opposed to alternative sites in Florida and California, where competing incentive offers and access to the technology experts are more readily available."

Rivian also has a facility in San Francisco. The company once operated in Rockledge, Fla., as well.

Representatives of Rivian could not be reached on Friday. 

The grant is from the Michigan Strategic Fund, which uses taxpayer dollars to "promote economic development and create jobs," according to michigan.org.

The Normal City Council will consider Monday an agreement giving Rivian a $1 million grant contingent on the company buying the town's former Mitsubishi Motors North America plant and investing $20 million in the project.

Rivian must invest $40.5 million and create 500 full-time, high-paying jobs by the end of 2021 in order to trigger a five-year property tax abatement. That deal needs to be approved by several taxing bodies, including Normal, McLean County, the Normal-based Unit 5 school district and Heartland Community College.

Rivian plans to invest $175 million and create 1,000 jobs by 2024, according to a release from the Illinois Department of Commerce and Economic Opportunity. The company plans to manufacture vehicles in Normal, said Mayor Chris Koos.

Rivian is expected to receive state incentives as well, though "nothing has been finalized," said Jacquelyn Reineke, media relations director for DCEO.

Rivian CEO RJ Scaringe is expected to address the council at its meeting at 7 p.m. Monday.

Be the first to know - Sign up for Breaking News

* I understand and agree that registration on or use of this site constitutes agreement to its user agreement and privacy policy.

Follow Derek Beigh on Twitter: @pg_beigh

0
0
0
0
0

Load comments