April 28, 2009

LANSING - Three Renaissance Zones were recommended today by the Michigan Commission of Agriculture, announced Michigan Department of Agriculture (MDA) Director Don Koivisto. The expansions represent over $45 million in new investment and will generate at least 190 jobs.

"These expansions show the potential of Michigan’s agri-business and food processor sectors," said Koivisto. “Agricultural businesses play a substantial role in the state’s economy and with continued investment and policy support; potential exists for greater economic development.”

Renaissance Zones are geared specifically to retain, attract or expand food and agriculture processing operations in Michigan by allowing companies to be exempt from state and local taxes for up to 15 years. Specific project details include:

• Alpena Prototype Bio-Refinery (APB) - Alpena
  APB was approved for a Renewable Energy Renaissance Zone. The expansion will create ten new jobs and invest $23.5 million. APB will be building a new bio-refinery to convert waste materials into cellulosic ethanol and sodium acetate (a de-icer). www.americanprocess.com
  
  
• Heat Transfer International (HTI) - Kentwood
  HTI was approved for a Renewable Energy Renaissance Zone. This company manufactures custom biomass gasification electrical generation systems. The systems convert solid and semi-solid waste into combustible syngas through a carbon neutral process. The expansion will create 20 new full-time positions within the first five years, as well as invest $4.6 million into the Kentwood facility. www.heatxfer.com
  
  
• Honee Bear Canning / Lawton Processing, LLC - Porter Township
  Honee Bear Canning / Lawton Processing, LLC was approved for an Agricultural Processing Renaissance Zone. The expansion will create 160 new jobs and invest $17.7 million in a new processing facility. The new facility will package and process frozen foods in retail size packages. The products will use Michigan and regionally grown vegetables and it’s expected that additional vegetable production will be needed. www.honeebear.com

In order for the Agricultural Processing Renaissance Zone and the two Renewable Energy Renaissance Zones designations to be granted, a municipality must first agree to the proposed project’s development plan and to forego taxes. The plan is then submitted to the Michigan Economic Development Corporation and MDA for their review and to ensure the proposal meets program criteria. The Michigan Strategic Fund Board of Directors, as well as the State Administrative Board, must give final approval for the zone request to be granted.