News Summary

DAYTON — Ohio Lt. Gov. Lee Fisher has signed a letter offering General Motors Corp. more than $56 million to keep 2,400 jobs at the automaker's Moraine assembly plant.

Kevin Carver, an Ohio Department of Development representative to Southwestern Ohio, did not know if the letter — which is dated Aug. 20 — has been sent yet to Troy Clark, president of GM North America, to whom the message is addressed.

But Carver said Wednesday Aug. 27 that the offer to GM is unusual in that typically an employer approaches the state with a possible project or expansion in mind and then the state responds with a set of incentives to secure the expansion. In this case, Carver said, Ohio government is taking the first step.

"We are prepared to demonstrate our support of keeping the plant open with this preliminary commitment of assistance, valued at more than $56.2 million," Fisher's letter to Clark said.

The assistance consists of a $54,239,220 job retention tax credit and a $2 million "rapid outreach" grant, the letter said.

The offer assumes GM would retain 2,400 full-time jobs at the current plant, where the average employee hourly wage would be $27.55, not counting benefits.

Carver shared a copy of the message at the GM Regional Response Task Force meeting Wednesday. The task force was formed in response to GM's June announcement that its Moraine plant will cease production by 2010. The group is working simultaneously to persuade leaders of GM to give the plant a new product, prepare employees for eventual closure and secure redevelopment for the plant site.

"It's hard to top $56 million from the state," said Dave Hicks, Moraine city manager. "Glad to hear that, Kevin."

Sharon Basel, a GM spokeswoman, said she wanted to gather information before commenting.

Carver also echoed previous recent remarks from Fisher, saying that GM is considering several states for placement of a new product. Carver said state officials must keep those discussions with the automaker confidential.

Also, he said Gov. Ted Strickland and Fisher have committed to quarterly meetings with GM executives to talk about GM's presence in the state.

To help secure a new product and an additional shift for the GM plant in Lordstown, Ohio offered more than $80 million in incentives over 15 years, the Detroit News reported last week. The newspaper reported that Fisher "joked" with Rick Wagoner, GM chief executive, that the state had been willing to double that amount, if necessary.

Contact this reporter at (937) 225-2390 or tgnau@DaytonDailyNews.com.