Act 425 tax-sharing agreements allow two or more local governments to cooperate and share the costs and benefits of economic development.
The City of Lansing has taken advantage of such agreements on several occasions:
The City of Lansing, Capital Region International Airport and DeWitt Township partnered to establish a 425 land-tax-services sharing agreement which helped establish our own "aerotropolis" region. An aerotropolis is regional partnership that forms a commercial core around an airport.
The City also established a 425 agreement with Alaieden Township to develop the headquarters of Jackson National Life Insurance Company, and later, to facilitate its $100 million expansion.
Lansing also established a 425 agreement with Delta Township to develop GM's Lansing Delta Township Assembly Plant. Since Mayor Bernero has been in office, GM has made investments in Lansing totaling over $1 billion.