VAN BUREN TWP.— A development plan and a tax increment financing plan for Visteon Corp were approved last Tuesday by the township Board of Trustees.
Township Supervisor Cindy King said Visteon is the world’s second-largest major supplier to the automotive industry and the second largest employer in Wayne County.
The company wants to build a $270 million corporate headquarters east of I-275, north of Tyler, south of Ecorse, and west of Hannan Road.
Tax increment financing will allow the township to pay for $26 million in public improvements within the designated Local Development Financing Authority district where the construction will take place. That will be possible from capturing taxes levied on the increase in property value of that area.
There are 750 acres in the LDFA district. It is bounded by all of Tyler Road to Haggerty Road and along Hannan and Ecorse roads.
Taxing units eligible for capture include Van Buren Township, Wayne County, Wayne County Jail, Wayne County Community College, Wayne County Parks and the Huron-Clinton Metropolitan Authority.
Development improvements included in the plan are site preparation, lake enhancement, tree replacements, wetland mitigation, the construction of a new public road, road improvements and several other projects.
"The proposal involves a significant amount of money, but it will all come from taxes that Visteon is paying," said Bryce Kelley, the township’s director of planning and economic development.
Kelley said the money being used to fund development activities would not come from the pockets of township residents or from their taxes.
"The corporation will be paying millions of dollars in taxes every year," Kelley said. "We are fortunate to capture a portion of those taxes."
According to officials, the financing plan requires that a debt service reserve fund of $2.5 million be created and only used if tax increment revenues don’t pay.
"Visteon is nothing less than a world-class corporation," Kelley said. "There is a risk, but it is not a risky proposition."