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Talks with GM on payback cordial

State leaders want to see job promotion in Ohio

LORDSTOWN — Gov. Mike DeWine said Ohio is not actively trying to clawback $60 million in state tax credits given to General Motors for its former Lordstown assembly plant.

“We don’t necessarily have to get that cash back, but what we do want to see is things that promote jobs in Ohio, and that is where our real focus is,” DeWine said.

“I wouldn’t say pursue is the right word frankly,” DeWine said responding to a question of whether now is the best time to go after the repayment. “It’s there, it’s what the law says. We’re not actively pursuing the clawback. What we are doing is having a very constructive discussion with General Motors about how we can turn that into things that are helpful to them, but also and most important to us, the state of Ohio.”

A letter from the state’s Development Services Agency states it will recommend to the Ohio Tax Credit Authority it terminate the agreements with GM and seek a full refund, claiming GM broke the tax incentive agreements when it closed the production facility in March 2019.

The tax credit authority could determine whether GM has to repay all or a portion of the credits when it meets in July.

Husted called the talks with the automaker not adversarial and not new, but dialogue that has been part of the conversation since GM announced its intent to close the plant.

“We just want to make sure we are fulfilling the expectation that we had with the taxpayers’ money in that conversation, but also in a way that is supportive of General Motors and job creation in the state,” Husted said.

According to Development Services, GM has received $14.2 million in job creation tax credits and $46.1 million in job retention tax credits. They were used to improve the plant to support the production of the second-generation Chevrolet Cruze.

GM received a 75 percent, 15-year job retention tax credit for committing to retain 3,700 full-time employees in Lordstown and a 75 percent, 15-year job creation tax credit in exchange for GM committing to create 200 new full-time employees and keep the existing 3,700 working. Both agreements were executed with the authority in January 2009.

The company also is making other major investments at plants in Dayton and in Toledo.

GM sold the plant for $20 million to Lordstown Motors Corp., which plans to reveal today its first production vehicle, the Endurance, an all-electric full-size pickup truck for fleets. DeWine and Husted discussed the matter with GM on Wednesday after touring the plant and getting a preview of the Endurance.

rselak@tribtoday.com

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