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| Duncan Aviation to Expand in Battle Creek, Creating 1,270 New Michigan Jobs
Contact:
John Truscott (517) 335-6397
Agency:
Governor
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Governor John Engler announced today that the Michigan Economic Development Corporation's (MEDC) incentives package has helped bring Duncan Aviation's new facility to Battle Creek. The MEDC helped win the project by making a competitive business case, against Nebraska, for the company to expand in Michigan with a Single Business Tax credit and job training assistance.
Duncan Aviation selected Battle Creek over Lincoln, Neb., for their new paint facility and production shop. It is estimated that this expansion will create 1,270 new jobs, 662 by the company, for Michigan workers.
"Duncan Aviation's decision to expand in Battle Creek adds another success story to the W.K. Kellogg Airport area," Engler said. "This area's development boom is great news for local workers and the statewide economy."
Due to an increase in contracts, Duncan Aviation plans to expand its existing facility in Battle Creek to allow for a paint facility and production shop. The company's investment in the expansion over a 10-year period is expected to exceed $18 million, including building additions, machinery and equipment. The new facility is expected to be operational no later than October 2002.
"The announcement that Duncan Aviation will be rewarded with an incentive to expand their operations in West Michigan embodies economic development at its very best. From the beginning, the Michigan Economic Development Corporation and Battle Creek Unlimited worked together to enable Duncan Aviation to expand here," said Battle Creek Mayor Ted Dearing. "The two organizations have been attentive to the expansion needs of the company and have met every challenge posed by the project."
Of the new jobs, 608 spin-off jobs will be created from increased spending by people who receive income from the jobs at Duncan Aviation, according to an economic analysis done by the University of Michigan.
A key feature of the MEDC incentives package is a Michigan Economic Growth Authority (MEGA) tax credit, approved today by the MEGA board, worth an estimated $3 million over 15 years. MEGA, which is administered by the MEDC, is used to promote high quality economic growth, job creation and retention in Michigan. In addition, the incentives package includes job training assistance valued at $500,000 for up to 662 new employees at Duncan Aviation's expanded facility.
This project will provide over $55.1 million in revenue to the state over the life of the agreement, resulting in a net positive gain for the state of over $52 million, after the MEGA credit. The project is expected to generate over $689.6 million in personal income during that time.
Duncan Aviation is the largest family-owed aircraft support operation in North America. In 1998, the company added aircraft and charter service facilities in Battle Creek and Kalamazoo through the acquisition of Kal-Aero. The company has over 1,400 employees, including about 500 at the Battle Creek and Kalamazoo facilities.
"The MEGA tax credit incentive is a necessary component for Duncan Aviation's growth plans for both the Battle Creek and Kalamazoo operations," said Gary Hartwig, Duncan Aviation's chief operating officer and executive vice president. "We are very pleased with the support and cooperation we have received from Battle Creek Unlimited, the city of Battle Creek and the state of Michigan. We are also delighted to know we have such supportive partners as we continue expansion of our Michigan operations to provide our customers more capacity and develop new jobs for our local community."
The Michigan Economic Development Corporation works in partnership with local communities and Michigan businesses to retain and expand job opportunities and improve Michigan's overall business climate. For more information on the Michigan Economic Development Corporation's initiatives and programs, visit the website at www.michigan.org.
| Duncan Aviation |
| MEGA Analysis |
| Summary Estimated |
| (All estimates in 2000 dollars) |
|
| TOTAL JOBS CREATED |
1,270 |
| Direct |
662 |
| Indirect |
608 |
| NET POSITIVE STATE REVENUE IMPACT |
$52,094,000 |
| Revenue Foregone |
$3,076,000 |
| Revenue Gain |
$55,170,000 |
| Average Wage |
$549/week |
| Personal Income Generated Over Life of MEGA Agreement |
$689,620,000 |
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