Update #2: After checking numerous sources, this looks like a reasonable deal. Rivian is not getting any money unless they meet requirements that have been preset – like the number of employees and investments completed.
Update: See the link in the comments – maybe NOT!
Pantagraph story not allowing comments!
By: Diane Benjamin
After paying $2.5 million for low wage jobs, the Town might be about to do economic development right.
The Pantagraph is reporting a buyer for the Mitsubishi plant is close to a done deal. Normal will give them $1 million and abate property taxes for 5 years if the company meets projections for employment and investment.
A lot of money, but these will be highly paid career jobs. Suppliers might also be lured to the area.
The name of the company is Rivian Automotive.
Bloomington-Normal needs manufacturing jobs. Not everybody is capable of existing in a cubicle. This could be exactly what is needed.
Maybe not. http://thecapitolist.com/questions-about-shady-car-company-plague-mayfield-in-sd17-race/
Yep, maybe not!
If you live in Normal, I’d send that to the Council!
This is scary. The auto company is claiming to provide 700 jobs here by 2021. Normal can’t be that desperate to throw another $1M away.
Round TWO. IF I remember RIGHT. Then GOV Thompson GAVE Mitsubishi the GROUND ($6 million) the Road infrastructure and RR spur as a “perk” to get them here.
AND NO taxes for TEN YEARS! What did that get ya?? It’s in a class with the coliseum!! It WAS a BIG deal for politicians to “puff up” their bellies and say “look what I did” and a eventual loser for everyone else. And it will NEVER be GOOD farm ground again. In 100 years, we MAY need that more then a car making job. Unless you go out at night eating cars—-Blondie
Leave it to the Pantagraph to continue with their heads stuck firmly in the sand by disabling comments for this story in their rag…
I submit that their heads are firmly stuck elsewhere.
None of this adds up. They have been in business since 2009, boast 40 employees, 7m in revenue – from what? No working website, can’t even find an engineers drawing of a product, no prototype. The SEC filing is useless. It mentions 2 names has a rule 506 attached that appears to allow them to keep many things private. No board members listed, but there are half a dozen corporate executives.
How many start up car companies actually make it? Tesla – owned by one of the worlds richest men is having issues. Fiskars? Maybach had to be bought out to save it. Tucker at least had a working model of his product and private investors. What is the guarantee for the tax payers of the town of Normal?
From the surface, this looks to be an even worse deal than the weiner stand. At least they have a record and a product that they are already selling.
Time to get government out of business and private investors and funding back.
Contact the Normal Town Council before they do more damage
This article http://www.npr.org/2011/07/11/137677198/end-of-shuttle-program-leaves-thousands-jobless mentions this
“R.J. Scaringe is the 28-year-old CEO of a start-up car company. At the company’s headquarters, he shows off what he calls Rivian’s launch vehicle: a sleek sports car he expects to have on the road by the end of 2013.”
I watched this youtube of the CEO talking.
“https://www.youtube.com/watch?v=GFRzoLNuZGY
I don’t know, a car business is a hard one to launch and keep in business. Maybe they are looking for a plant to start producing. I wish them the best of luck. I know Delorean and Tucker had some good ideas also.
They aren’t getting a million bucks though.
Something doesn’t seem right. No prototype by now. Not even one drawing has been made public.
Even the Smart Car is struggling to survive.
I don’t think I would ever own something like a Tesla. Nice car it looks like but where would you get it serviced at. Certainly not at Joe’s garage down the street. Not to mention what it probably costs to service this new technology. Like my father always told me be careful of what you buy because you could find yourself stranded someplace. Joe’s garage may have something for a Ford, Chevrolet, etc.
According to the November 2015 article found on the internet, Rivian is going to build/invest $30 million for design studio in Livonia/Dearborn MI Have they? No real news from them since then. If you look at google maps a non descript warehouse doesnt look like it cost $30 million unless it is lined with gold
If they do get a $1 million grant, I hope there are strict provisions in the deal that they have to meet the specific projections. If they don’t have a certain number of employees working there at wages above the McLean County average, then don’t disburse the funds. This can’t be like Florida where they take the money and run.
“The town of Normal is expected to contribute a $1 million grant and a five-year property tax abatement for the development, contingent on Rivian meeting investment and employment projections.”
Glad to see you coming around on this one. There is a great meme going around – “Don’t cling to a mistake just because you spent a lot of time making it.” which applies perfectly to the Mitsubishi plant.
Another good rule of thumb. If it requires subsidies to get them to do it, it is probably a bad idea.
Funny how everyone commenting doesn’t think the Normal Town Council, town staff, the Bloomington-Normal Economic Development Council, or the state of Illinois DCEO staff don’t have access to Google to find the same articles posted here. Or…have access to networks and people who know first hand about Rivian. Also amazing how these kinds of projects are pushed through personal filters like “I’d never buy a car like that” so no one would, so kill the deal. Or start ups fail, so let’s do nothing. Also funny how BLN “news” users can’t use Google to see examples of subsides or public private partnerships working. #sad #mentalmidgets
You are talking about the same idiots that bought Portillos for 2.5 million when Champaign got theirs for free. No, nobody trusts them.