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March 12, 2006Tax breaks, other projects pitched to soften the blowRenaissance zone proposed for GP plant siteGAYLORD -- State lawmakers will try to market a soon-to-be empty Georgia-Pacific plant in Gaylord with a series of tax break and infrastructure legislation.State Sen. Tony Stamas, Rep. Kevin Elsenheimer and Sen. Jason Allen on Friday said they hope to designate the factory and 750 acres of Georgia-Pacific property a tax-free renaissance zone. Such zones are meant to prompt new jobs and investments by granting virtually tax-free status to any business within a zone or that moves into one. Local officials must approve conditions before it's finalized. Elsenheimer said the impact of losing 210 factory jobs in Gaylord is comparable to about 10,000 instant job losses in Oakland County. "This is a big hit to the residents and workers of Gaylord. We are already working on legislation tailored to Gaylord, to help attract developers and create new jobs," he said. Michigan's tax-free renaissance zones void both local and state taxes for 12 years and then gradually reinstate them over three years. Bagley Township Supervisor Bill Giles said he's unsure of that plan, as it would amount to a large chunk of missing tax revenue for both township and county governments. But Otsego County Commissioner Ken Glasser said a renaissance zone may be exactly what Gaylord needs. "Anytime you can sweeten the pot, you look better than Kalamazoo. That's what we're facing," Glasser said. The factory's 2005 assessed value was nearly $8 million, while the property surrounding it is worth almost as much at $7.57 million. The company paid more than $425,000 in local taxes last year. Other proposed state bills would provide funds to retrain laid-off workers, encourage grants for railroad expansion and state funds for two proposed Interstate 75 overpasses in Gaylord. The overpasses already have a local millage proposal on the August ballot and $12 million in promised federal support. The plant employed 43 salaried workers and 167 hourly employees. Hourly workers belong to the woodworking division of the International Association of Machinists and Aerospace Workers. Union leaders began negotiations with Georgia-Pacific officials to get more than two months of severance pay, said Terry Jans, president of Gaylord's Local 166. A question-and-answer session for laid-off employees will be March 19 at 1 p.m. at the Eagles Club on South Wisconsin Avenue in Gaylord.
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