The Detroit News reports:
"The state of Michigan quadrupled its offer to keep General Motors Co. from relocating about 2,000 employees from the Renaissance Center, and teamed with local officials to dangle tax breaks that could total $221 million.
The package helped convince GM on Friday to scrap plans to move about half of its work force out of the iconic riverfront complex as part of a broad facilities consolidation. GM also cited the high cost -- tens of millions of dollars -- and disruption of relocating workers to the Warren Tech Center as reasons to maintain a sizeable staffing level at the RenCen.
"We decided to spend that money on products and technology and relationships with customers," GM spokesman Tom Wilkinson said.
The sweetened offer ends a prolonged saga that threatened to sap tax revenue from Detroit, which is facing a roughly $300 million budget deficit, and leave GM with a half-empty world headquarters following thousands of job cuts during the company's financial crisis last year. It also ends a tug-of-war between the city and Warren, which was wooing GM to relocate as many workers as possible to the Macomb County community..."
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