Transportation economic development grants to create or retain 1,588 jobs in eight Michigan counties
April 15, 2013 -- The Michigan Department of Transportation (MDOT) today announced 10 state transportation economic development grants that will help create or retain 1,588 jobs in eight Michigan counties. Transportation Economic Development Fund (TEDF) Category A grants totaling $7,906,508 will leverage $417,586,709 in private investment at a private/public ratio of 53-to-1. Private developers, townships, counties and MDOT will provide over $21,546,557 in matching funds (73 percent) for the projects.
"Good roads lead to good jobs. MDOT is pleased to help cities and counties make transportation improvements that help companies decide to expand or locate in Michigan," said State Transportation Director Kirk T. Steudle. "These grants will keep commercial traffic moving safely and efficiently across the state and result in the addition of good-paying jobs."
Enacted in 1987 and reauthorized in 1993, the TEDF was created to fund highway, road and street projects that encourage private investment in Michigan that will create or support jobs. The TEDF "Category A," or "Target Industries Program," provides state funding for transportation improvements that will help accommodate increased traffic and provide commercial routes that are safe and more efficient for new and expanding companies. Eligible road agencies include MDOT, county road commissions, cities and villages.
APPROVED CATEGORY A PROJECTS BY COUNTY
Bay County (two projects)
Dow Corning Corp. is a global company with more than half of its annual sales outside the United States. Dow Corning's Auburn manufacturing site, established in 1987, produces hundreds of high-quality products for the electronics, automotive, and aerospace industries. In addition, Dow Corning Compound Semiconductor Solutions, a wholly owned subsidiary of Dow Corning, is an important center for the research and development of innovative new products that enable electronics, more efficient transportation, and more reliable energy systems. Dow considered the Auburn site, as well as sites in North Carolina, Korea and Japan, for a $117,000,000 investment in two new product lines: one related to a coating for electronic devices and the other related to continued investments in silicon carbide research, development manufacturing.
Dow Corning's Auburn site is located on Eleven Mile Road, approximately one-half mile north of Salzburg Road. Neither road is currently designated as an all-season route. Both roads are in poor condition and subject to weight restrictions during the spring thaw cycle. During the seasonal weight restrictions, Dow Corning must increase the number of trucks delivering raw materials and shipping out finished product. This increases fuel and shipping costs and leads to truck congestion at the Auburn facility. To address this and poor intersection geometrics, the Bay County Road Commission will reconstruct both roads and widen the intersection of Eleven Mile Road and Salzburg Road. The improvements will allow Dow Corning to operate at consistent production capacity year-round and add 73 new jobs. The estimated cost of these transportation improvements is $1,543,000, including $730,000 in state TEDF funds and $813,000 in local match from the road commission and federal funds.
Mersen is a worldwide leader in two major areas: advanced materials and technologies, and electrical components and technologies. The company is composed of four operating divisions and operates in over 40 countries, including major regions like Europe and Mexico. A previously announced expansion project will consolidate operations, presently located in four separate buildings, with a new 90,000-square-foot facility in Williams Township that will be completed over three years with $21,310,000 in private investment. The project will result in 32 new jobs.
Mersen Midland considered locating this new facility in China, Korea, and France, as well as in Michigan. In order to efficiently route traffic and accommodate potential future expansions, the freight entrance will be located on Flajole Road, south of Salzburg Road. Flajole Road is currently subject to seasonal weight restrictions, and the intersection of Flajole and Salzburg roads is not designed to accommodate large trucks. As part of Mersen's decision to expand in Michigan, a commitment by the Bay County Road Commission to address these deficiencies was important. The project will include the reconstruction of Flajole Road to all-season standards and geometric improvements to the intersection to accommodate large trucks. The estimated cost of these transportation improvements is $369,495, including $248,400 in state TEDF funds and $121,095 in local match from the road commission and Williams Township.
Calhoun County (two projects)
Janesville Acoustics (JA), a subsidiary of Jason Inc., is one of the world's largest producers of acoustical and thermal fiber insulation, and a leading producer of automotive decorative trim and molded fiber products. After a fire destroyed their facility in Ohio, the company considered new production sites, including ones in Michigan and Indiana. Due in part to the availability of necessary infrastructure, JA selected a vacant facility located at the Fort Custer Industrial Park in Battle Creek. In addition, ready access to I-94 via the I-94 Business Loop (BL) provides the company with efficient access to all its major markets. Michigan, Canada, and Indiana/Ohio via I-69 and beyond. JA will invest $15 million in new equipment and building upgrades, creating 255 jobs.
The facility is located off Logistics Drive, which connects directly with Columbia Avenue/I-94 BL (Martin Luther King Drive). Columbia Avenue, which interchanges with I-94, is a major north-south route in the Fort Custer Industrial Park and services a large volume of commercial traffic. The pavement condition of Columbia Avenue/Martin Luther King Drive is rated as poor and projected to further deteriorate with increased employee and commercial traffic. In addition, the Columbia Avenue bridge over I-94 needs a deck and superstructure replacement. To assure continued access to I-94, the MDOT Southwest Region will resurface Columbia Avenue/Martin Luther King Drive from West Dickman Road to I-94 and replace the bridge over I-94. In addition, the new bridge deck will be constructed to accommodate connections with the existing nonmotorized facilities in the area. The estimated cost of these transportation improvements is $14,285,366, including $1,288,063 in state TEDF funds and $12,997,303 in combined local match from Battle Creek, MDOT's Southwest Region and federal funds.
Brembo North America, Inc. (BNA) will invest $33,290,000 to expand its brake disc and drum manufacturing plant near Homer, almost doubling its current square footage. The additional space will house equipment and other resources to increase production volume, adding 112 new jobs. BNA chose the Homer plant over several locations outside Michigan, including sites in Mexico and China. A critical component in the decision was infrastructure improvements. BNA's plant is located off of M-60. BNA is constructing new driveway access off M-60 to allow for the plant expansion and provide access to new loading docks. The plant expansion will lead to an increase in truck traffic, potential site-access and safety issues. To address this, MDOT will construct wider, heavy-duty shoulders and driveway tapers to allow safe access for truck traffic onto westbound M-60. In addition, BNA trucks need to access I-69 and the I-94 corridor to bring in raw materials and ship out finished products. The surface of M-60 at the I-69 interchange is in poor condition. To remedy this, MDOT will reconstruct M-60 from just west of I-69 to the intersection of Old US-27. The estimated cost of these transportation improvements is $1,861,807, including $272,211 in state TEDF funds and $1,589,596 from MDOT's Southwest Region and federal funds.
Eaton County
L&W Engineering started in 1973 in Belleville, Mich. It provides stampings and welded assemblies for the automotive industry with 16 manufacturing facilities in Michigan, Ohio, Tennessee and Texas that employ approximately 2,200 people. To meet current demand, the company considered expanding its facilities in Michigan or Ohio but instead chose to invest $26,911,000 to expand operations in Grand Ledge. The expansion will result in the creation of 340 new jobs.
While its Grand Ledge facility located on Oneida Road in Oneida Township was the company's first choice for expansion, Oneida Road is in poor condition and trucks have limited sight distance at the M-43 and Oneida Road intersection. To accommodate the plant, the Eaton County Road Commission will upgrade Oneida Road from M-43 north to the railroad tracks. In addition, MDOT's University Region will modify the intersection of M-43 at Oneida Road to improve safety for employee and truck traffic accessing the L&W plant. The project is scheduled for the 2013 construction season. The estimated cost of these transportation improvements is $881,240, including $683,600 in state TEDF funds, $138,640 from L&W Engineering, and $59,000 from MDOT's University Region.
Genesee County
Magna Electronic Technology Inc., a wholly owned operating unit of Magna International Inc., manufactures a range of electrical and electronic products and systems for the automotive industry. As part of a previously announced expansion, Magna expects to hire an additional 370 workers over the next three years at its facilities in Grand Blanc Township.
Currently, the high volumes of northbound Holly Road traffic accessing northbound I-75 experiences significant delays at the Holly Road/I-75 interchange, causing traffic to back up over I-75. Further delays could jeopardize efficient access for Magna and other road users. To ensure access, the MDOT Bay Region will add a free-flow loop ramp from northbound Holly Road to northbound I-75. To provide sufficient room for the new ramp, the existing northbound I-75 exit ramp will be realigned. The existing northbound on ramp will continue to be available for southbound Holly Road traffic. The estimated cost of these transportation improvements is $6,519,620, including $2,303,320 in state TEDF funds and $4,216,300 in federal Congestion Mitigation Air Quality (CMAQ) funds.
Monroe County
Guardian Industries Corp. is a manufacturer of glass products used in construction and automotive applications. Two of its facilities, a Science and Technology facility and a Float Glass plant, are located on Romine Road in Carleton in Ash Township. Guardian plans to invest $55 million for new equipment at the Float Glass Plant for additional product lines. The company considered another location in Pennsylvania as well as the Monroe County site. If Guardian had not chosen to invest in the Monroe facility, 25 new jobs, as well as 200 existing jobs, would have been lost to Michigan.
The only access to the plant is via Romine Road, south of Will Carleton Road. The road is in extremely poor condition and the ability to carry the plant's current and future traffic is threatened. To improve access, the Monroe County Road Commission will reconstruct Romine Road from 1,550 feet north of Newburg Road to Will Carleton Road, making improvements at the facility's entrances. Also, in partnership with the Wayne County Department of Public Services, the road commission will add new turn lanes at the intersection of Romine and Will Carleton roads. The estimated cost of these transportation improvements is $1,064,422, including $834,422 in state TEDF funds, $100,000 from Guardian Industries and $130,000 from Ash Township, the Monroe County Road Commission and the Wayne County Department of Public Works.
Ottawa County
Fair Oaks Farms Brands, Inc. (FOFB) is an established manufacturer of dairy products. FOFB will invest $127 million to start a new liquid milk processing and bottling operation next to an existing milk drying facility operated by Continental Dairy Products, Inc. The new operation will be located in a former Delphi factory on Randall Street in Coopersville and result in 133 new jobs. FOFB will purchase the milk used in the operation from Continental Dairy Products, which was the first company to reuse a portion of the previously shuttered facility. FOFB also will construct a new 60,000-square-foot addition. Currently, all FOFB products are manufactured outside of Michigan. The company considered locations in New York, Pennsylvania, and Indiana before selecting the Coopersville site.
Efficient access to the transportation system was a major consideration in the company's decision to locate in Michigan. The Coopersville facility's truck and employee access is located on a section of Randall Street that is in poor condition. To ensure continued access, the city of Coopersville will reconstruct Randall Street from 64th Avenue to approximately 1,000 feet east of 68th Avenue, where a previous TEDF Category A project to accommodate Continental Dairy's development was recently completed. The estimated cost of these transportation improvements is $1,299,815, including $903,852 in state TEDF Category A funds and $395,963 in local match from the city, state TEDF Category D, and federal rural surface transportation program funds.
St. Joseph County
Summit Polymers manufactures molded and decorated systems for the automotive industry. For a planned expansion into new automotive products, Summit Polymers had considered sites in Kentucky and China but decided instead to build out three Michigan facilities, including its Sturgis facility. The expansion will allow the company to maximize its distribution and logistics channels. Summit Polymers will invest $1 million in new equipment and create 27 new jobs in Sturgis. Broadus Street is one of two existing access roads that serve the facility.
Broadus Street, located in the city's industrial area, is used for company shipping and receiving as well as access to employee parking. The road is currently in very poor condition. The city of Sturgis will reconstruct Broadus Street from Progress Street to Dresser Drive, ensuring continued all-season access for Summit Polymers and other motorists in the vicinity. The estimated cost of these transportation improvements is $303,300, including $242,640 in state TEDF funds and $60,660 in local match from the city.
Wexford County
McGuire's Resort is a northern Michigan resort destination with numerous amenities. McGuire's has plans to expand its conference facilities, update an existing restaurant and hotel rooms, make exterior facade improvements, and add a teaching center. Additionally, the resort will upgrade its sewer and water systems, investing $2.5 million and creating 21 new jobs.
Mackinaw Trail, the main road access to the resort, is a major commercial connector between M-115 and the US-131 Business Route in the Cadillac area. Mackinaw Trail is in poor condition and improving it is essential to McGuire's decision to invest in the Clam Lake Township facility. The final decision to expand is contingent upon the receipt of other grants and incentives. To assure continued access, the Wexford County Road Commission will completely reconstruct the road with a new roadway base and asphalt surface. The estimated cost of these transportation improvements is $1,325,000, including $400,000 in state TEDF funds and $925,000 in local match from the road commission and federal transportation funds.
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