October 17, 2006

Governor Jennifer M. Granholm and Department of Environmental Quality Director Steven E. Chester announced today that funds have been awarded to a brownfield redevelopment project in the city of Sault Ste. Marie. The funding includes a $155,000 Brownfield Redevelopment Grant to address environmental and health concerns on a contaminated parcel in the Sault Ste. Marie Industrial Park and allow a local business, R & B Electronics, to expand and relocate there.

"This project is a wonderful example of state and local leaders coming together to enhance the Sault Ste Marie community," Governor Granholm said. "The R & B Electronics Company could have chosen to move jobs out of Michigan, but thanks to this collaborative effort, we met their business needs, and kept their manufacturing jobs here in Michigan."

The R & B Electronics Building Redevelopment Project will be located on a 4.76 acre parcel in the Sault Ste. Marie Industrial Park that was historically part of a lumber operation and metallurgical facility. The DEQ partnered with the city of Sault Ste. Marie in 1994 to conduct environmental investigations within the city's industrial park which discovered soil contamination that is still present on-site. The city will remediate, renovate, and lease a 12,000-square foot building for the expansion of the R & B Electronics Company, while the funding announced today will be used to conduct soil investigation to determine the extent of on-site contaminated soils and to remove those impacted soils.

The R & B Electronics Company is a specialist manufacturer of Electro-Mechanical assemblies used in the aerospace industry for both commercial and military use. The firm has seen increased business and was searching for a larger production facility. While one option was to send their production to their sister facility in Grand Prairie, Texas, the DEQ, in conjunction with the Michigan Economic Development Corporation, and the city of Sault Ste. Marie, partnered to provide funding and identify an appropriate location for the expansion of the R & B Electronics Company within the city. The MEDC is providing a $190,000 Community Development Block Grant to assist with the project, while the city will provide tax abatements for the site. This project will create new jobs within the city, and leverage over $500,000 in private investment for the purchase and installation of the new machinery and equipment.

"We're pleased to provide funding for this project," said Director Chester. "This partnership with the Sault Ste. Marie community demonstrates our commitment to providing for a healthy environment and a healthy economy throughout Michigan."

The Brownfield Redevelopment Grant and Loan Program provides funding to local units of government for environmental response activities on brownfield properties where redevelopment is likely or proposed. Brownfield properties are vacant or abandoned properties with known or suspected environmental contamination. The Brownfield Redevelopment Grant and Loan Program was initiated in 1988 and has provided $129 million for 304 projects statewide.

Editor's note: DEQ news releases are available on the department's Internet home page at www.michigan.gov/deq.

"Protecting Michigan's Environment, Ensuring Michigan's Future"

Revised October 17, 2006 by Pat Watson