PONTIAC, Mich. (AP) — A Renaissance Zone for the city of Pontiac that would exempt a movie production studio from property taxes has been approved by the Michigan Economic Development Corp.
Motown Motion Pictures LLC would be fully exempt from property taxes through 2021, when a gradual phase-out begins. The exemption ends in 2025.
The Oakland Press says employees would still be required to pay income tax.
The company plans to invest about $70 million in a 600,000-square-foot development with nine sound stages in the suburb located about 20 miles northwest of Detroit.
By 2015, if Pontiac is not receiving $90,000 per year in tax revenue, the company must pay the difference.
Motown Motion Pictures is expected to bring in more than 5,130 jobs and will get a state tax credit of $101 million over 12 years.
Information from: The Oakland Press, http://www.theoaklandpress.com
Copyright 2009 The Associated Press.