(5/21/2019) - Fiat Chrysler says construction is set to begin immediately on a new $1.6 billion assembly plant on Detroit's east side.

A representative of the automaker told state officials Tuesday that vehicles are expected to start rolling off the line at the plant by late 2020.

The Detroit City Council on Tuesday approved land deals and community benefits agreements tied to the project. Michigan's Strategic Fund was expected to vote Tuesday afternoon on the state's portion of incentives for the project.

Fiat Chrysler is pledging to add 6,400 jobs in the Detroit area, including just under 5,000 in the city of Detroit.

The new assembly plant is expected to add 3,850 jobs. Fiat Chrysler also plans an additional 1,100 new jobs at its adjacent Jefferson North Assembly plant to build the Jeep Grand Cherokee and a new, three-row, full-size Jeep SUV and plug-in hybrid models for all.

Michigan's economic development arm has approved $223 million in incentives to help Fiat Chrysler invest in five factories, including the construction of a new assembly plant in Detroit.

The Michigan Strategic Fund authorized the package Tuesday, shortly after it was unveiled during a public meeting. The incentives include a mix of tax breaks, grants and the state's portion to help Detroit acquire land.

Included in the state package is a $105 million "Good Jobs" incentive, which lets companies keep all or half of the income taxes associated with new jobs for up to 10 years, if the jobs pay at least the regional average. That accounts for more than half the maximum $200 million available under the program.

The Detroit City Council on Tuesday approved land deals and community benefits agreements tied to the project. They include a four-week exclusive window Detroit residents will have to apply for jobs at the facilities once laid-off workers and temporary employees are considered.

The company is getting tax breaks and 215 acres of adjacent land the city had to acquire. The land deals are about $108 million, with Detroit and the state splitting it about equally.

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