General Motors Bankruptcy Closes Norton, Mass., Auto Parts Plant

Norton, Mass. -- During and recent televised broadcast of the board of selectmen meeting, a frustrated town manager named James Purcell mused out loud, "Where is our bailout for the local town government?" What the town manager
was referring to is, of course, the Federal government bailout of General Motors. That sentiment is one that is felt
by town officials, state officials and the citizens of our states across the country.

As part of its cost-reduction effort General Motors is planning on permanently closing 9 auto plants and idling
3 other plants across the nation. Also, facing closure will be 7 power train plants, auto parts plants, and part stamping plants. All are scheduled to close by June 2010. The local Norton, Mas,s auto part plants is among those scheduled to close.

The town manager James Purcell was in touch with the towns Congressional delegation to gain their assistance. Congressman Barney Frank (D) office quickly responded to the inquiry from Mr. Purcell. Congressman Frank (D) was able to get in touch with the General Motors headquarters in Michigan and was able to secure an extension for the doomed auto plant for 14 months. There are currently 60 to 80 employee working at that plant.

During the fiscal year 2004, the town of Norton and General Motors entered into a (TIF) agreement. (TIF) is
a tax increment financing agreement. As part of the (TIF) agreement, General Motors had pledged to create
approximately 140 hourly and salaried jobs. That (TIF) agreement was scheduled to start in the fiscal year 2005
and end in the fiscal year 2024. The agreement was for a 20 year period. General Motors was according to that
agreement give the town of Norton at least a 60 day notice if it was to close the facility.

According to the town of Norton's assessor office the properties fair market value is estimated at $27 million.
With the (Tif) agreement in place that agreement will bring the fair market value of the property down to $12 million.General Motors is receiving a 60% financing reduction. That means that the town of Norton would have had an additional tax revenue of $185,000.

During the televised broadcast of the board of selectmen meeting Mr. Purcell stated that those tax revenue
of $185,000 could have funded a few positions such as teachers at the high school, fire fighters, and policeman.

General Motors is violating the terms of the (TIF) agreement by the following; 1) General Motors has failed to
maintain the 140 salaried and hourly employees at the facility, 2) General Motors has failed to provide the town
of Norton, Mass a scheduled report that was due on the July 30 time frame, 3) General Motors has failed to give
the town of Norton a 60 day notice of closing the facility. By violating those parts of the (TIF) agreement, General
Motors has forfeited the rights to the tax exemption grant.

Therefore the Norton Board of Selectmen has begin the decertification process. The board of selectman will
send to General Motors by written notification of the possibility of the decertification process. The company will
be provided a 3 month time period to cure those compliance issues.

General Motors is planning on eliminating 61,000 salaried/hourly employees across the country. The 80
employees at the auto part plant in Norton are just a small portion of the pending layoffs. General Motors is
also planning on closing 40% of its dealership across the nation. How many dealership in the state of
Massachusetts will be facing a shut down remains to be seen.

By filing chapter 11 bankruptcy General Motors will have a negative impact here in Norton, Ma as well as the
rest of the state. However, that negative impact will be far greater in other states such as Michigan, and Ohio.