Detroit reaches land deals for new Fiat Chrysler plant plan

DETROIT – Land deals that will allow Fiat Chrysler to build a new assembly plant in Detroit are expected to cost the city and state about $107 million.

Mayor Mike Duggan released details Friday of agreements reached for nearly 215 acres (87 hectares) on the city’s eastside that the automaker wants as part of a $1.6 billion investment .

About 155 acres (62-hectares) are owned by the city and the Detroit Land Bank Authority.

Deals have been reached with several major property owners, including 82 acres (33 hectares) from a company owned by the family of businessman Manuel “Matty” Moroun.

Duggan’s office says Detroit will use $36 million in bond funding, a $7.5 million loan from the city’s Brownfield Redevelopment Authority and just over $7 million from the sale of a city-owned garage.

Another $57 million in grants and loans has been requested from the state.

The project has to be approved by the City Council.