WisBusiness: Rock Co. official says Wisconsin’s GM offer ‘blown out of the water’

By Brian E. Clark
For WisBusiness.com

A Rock County official says Wisconsin’s $200 million incentive package aimed at getting GM to build a new compact car at its Janesville plant was “blown out of the water” by Michigan’s offer.

According to published reports, GM decided to put the new line at its plant in Lake Orion, Mich., thanks to nearly $1 billion in incentives from the Wolverine State.

James Otterstein, Rock County’s economic development manager, said he’s disappointed but not bitter about losing out in the competition.

“Some people might say we were used to drive up the incentives, but we were in there to the end,” he said. “Still, if those published figures are correct, we were just blown out of the water.”

Wisconsin’s offer included $115 million from the state comprised of tax credits, energy grants and some other incentives, according to the Department of Commerce.

Meanwhile, the city of Janesville said in a statement that the package included $20 million from Rock County and $2 million from Beloit.

Janesville also pledged $15 million in cash incentives and additional savings of up to $1 million a year for GM through the city taking over operation of the company’s wastewater treatment facility.

Commerce Executive Assistant Zach Brandon said the rest of the package included private sector incentives that he could not disclose. He said generally such incentives come from utility companies, local development entities and health care companies.

All of the local government incentives included a requirement that GM keep at least 1,200 workers at the plant and ongoing employment for 10 years, Janesville said.

“Of course, we’re frustrated because there was a lot of time and energy put into this project,” Otterstein said. “But there are factors you can’t control. We put forth a solid case for Janesville. We did as much as we could given the circumstances.”

“It would be disingenuous to say that there aren’t at least some folks who believe there was a bit of gamesmanship going on by GM, but others believe it was a legitimate process all the way through,” he said.

What was unique about this case –- because of the company’s bankruptcy procedure and subsequent government role in GM’s ownership -– was how it was played out in public, Otterstein said.

“That changed the dynamics all the way through,” he mused. “Normally, most of this goes on underneath the radar screen. Usually the only time there is an announcement is when there is a decision made.”

Otterstein said he and other officials from the county, Janesville and Beloit knew they faced stiff competition going into the battle to land the new compact car plant.

“It was an uphill battle with a long and extensive effort,” he said. “At the least we kept the discussions going as long as we did, especially considering that other communities were summarily dismissed from consideration.”

“Janesville and Wisconsin stayed on the short list for the better part of 12 months,” he said.