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Transportation economic development grants to benefit employment in Chippewa and St. Clair counties

Contact:  Bill Shreck 517-335-3084
Agency: Transportation


July 18, 2008 -- Gov. Jennifer M. Granholm announced today that state Transportation Economic Development Fund (TEDF) Category A grants for major road improvements will help two employers add or retain jobs in two Michigan counties. Superior Fabrication Company, LLC will add 30 new jobs in Chippewa County and Chrysler LLC will retain 750 jobs in St. Clair County. The Michigan Department of Transportation (MDOT) distributes TEDF funding.

"This all part of our economic plan to grow jobs and the economy," Granholm said. "These transportation improvements reflect our commitment to provide Michigan residents with good paying jobs."

More than $3.4 million in TEDF Category A grants will leverage $369 million in private investment at a ratio of 108-to-1. Enacted by the Michigan Legislature in 1987, the Transportation Economic Development Fund supports highway, road, and street projects necessary to support economic growth. The Category A or "Target Industries Program" is aimed specifically at making transportation improvements in Michigan to encourage major employers to make private investments that create or retain jobs.

APPROVED CATEGORY A PROJECTS BY COUNTY

Chippewa County

Superior Fabrication, known as the producer of masts for rough terrain and heavy-duty forklifts, surgical braces for orthopedic procedures, and armored components for military vehicles, is expanding its product line in order to become more competitive in global markets. The manufacturer is located at the site of the former Kinchloe U.S. Air Force Base in Kinross Charter Township. The proposed expansion will add 26,000 square feet to Superior Fabrication's current operations. The company considered its North Carolina plant as a site for its planned expansion, but determined that its Michigan site was more feasible and offered more room for future expansion and development. Transportation networks also played a factor in this decision, as the chosen site is strategically located near a major north-south interstate and an east-west highway.

To accommodate the increased truck traffic, MDOT's Superior Region will reconstruct nearly 100 feet of northbound and southbound I-75 and replace a failing culvert.

The company will invest $3 million in the new facility, creating 30 new jobs. The cost of the I-75 project is $662,110, including $350,000 in TEDF Category A funds, and $312,110 in local match from the MDOT Superior Region.

St. Clair County

Chrysler LLC has been producing automobiles since 1925. It is investing $366 million in a new axle plant in Marysville in St. Clair County for a line of front and rear axles that will go into production for 2010, 2011, and 2012 model year introductions. Workers at the facility will manufacture ring gears and pinions and assemble finished axles, and have the capacity to manufacture almost two million axles per year. The Marysville facility will employ approximately 750 hourly and salary employees retained from the other Chrysler facilities in Michigan.

The location of the axle plant was based on a number of key transportation factors, including proximity to highways, Class A roads, auto suppliers and rail. Chrysler chose the Marysville site for its access to I-94, Davis Road, Busha Highway, and established logistic routes.

To support the Chrysler facility, this grant will fund seven separate projects. The projects include widening M-29 to add a deceleration lane on northbound M-29 and a left-turn lane on northbound M-29 at the Chrysler employee entrance, making signal improvements at the Gratiot and Range Road intersection, resurfacing Davis Road from Range Road to M-29 with the addition of right turn lanes at both Range Road and M-29, constructing a left turn lane on M-29 at Cuttle Road, adding left-turn lanes added on Range Road at the intersection with Davis Road; and adding passing relief lanes Davis at both 18th Street and Cuttle. These improvements will facilitate the flow of traffic both to and from the new Chrysler facility.

Chrysler will invest $366 million in the new facility, ensuring that 750 jobs remain in Michigan. The cost of the improvements is $3,848,900, which includes $3,079,119 in TEDF Category A funds. Local match includes $385,011 from St. Clair County and $384,770 from the MDOT Metro Region.

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