Detroit outlines land deals for auto plant

DETROIT (AP) — Land deals that will allow Fiat Chrysler to build a new assembly plant in Detroit are expected to cost the city and state about $107 million.

Mayor Mike Duggan released details Friday of agreements reached for nearly 215 acres on the city’s eastside that the automaker wants as part of a $1.6 billion investment.

Deals have been reached with several major property owners, including 82 acres from a company owned by the family of businessman Manuel “Matty” Moroun. Moroun also owns the Ambassador Bridge which connects Detroit with Windsor, Ontario, Canada.

About 155 acres are owned by the city and the Detroit Land Bank Authority.

Duggan said Friday that the property owners “understood the rare opportunity this represents for our city and worked with us throughout this complicated process.”

The new assembly plant is expected to add 3,850 jobs. Fiat Chrysler also plans an additional 1,100 new jobs at its adjacent Jefferson North Assembly plant to build the Jeep Grand Cherokee and a new, three-row, full-size Jeep SUV and plug-in hybrid models for all.

The automaker announced its plans in February. Most of the needed land would be for expanding the footprint of the existing facility, parking and other uses.

If the land acquisition plan is approved by the City Council, the site would be prepared and construction of the new plant could start later this year.