May 12, 2006
May 12, 2006
LANSING – Governor Jennifer M. Granholm today visited Duncan Aviation’s new aircraft service facility in Battle Creek as part of her effort to go anywhere and do anything to keep and grow jobs in Michigan. She joined Senator Mark Schauer (D-Battle Creek) and Duncan Aviation officials for a ceremonial signing of House Bill 4855 (Public Act 17 of 2006) and House Bill 4856 (Public Act 18 of 2006).
“Duncan Aviation has been a mainstay of the Battle Creek business community since 1956, the year the company was founded,” Granholm said. “This is a golden opportunity to express our appreciation to the largest family-owned aircraft support services provider in North America for its continuing commitment to Michigan and more than 450 employees.”
In May 2005, Duncan announced plans to invest $19.5 million to expand in Battle Creek instead of at the company headquarters in Lincoln, Nebraska. The project will create 726 jobs, including 380 directly by the company, representing the largest job creation total for a single company within the state’s network of 11 SmartZones.
The Michigan Economic Development Corporation (MEDC) approved a Single Business Tax credit valued at more than $2.2 million over six years to win the project. The city of Battle Creek has proposed an additional incentive through the city's Tax Increment Finance Authority (TIFA), offering to construct 142,000 square feet of aircraft ramp, add additional paving, and to reroute the road to service the expansion. The value of the city's contribution is estimated at more than $1.3 million.
Duncan Aviation has grown into the largest family-owned aircraft support services provider in North America. The company maintains and inspects all major aircraft brands including Cessna, Learjet, Falcon, Challenger and Gulfstream. It employs 1,800 nationwide,
including 467 at its facilities in Battle Creek and Kalamazoo.
The legislation, officially signed into law last February, allows sales and use tax exemptions for aircraft parts and the sale of aircraft temporarily located in Michigan for prepurchase/postsale evaluation or customization. The change creates a cost savings for customers who send aviation equipment and aircraft to Duncan Aviation facilities in Battle Creek and Kalamazoo for repair. This levels the playing field with other states for Duncan, and they are very appreciative.
“This project is a great example of how state government can partner with communities to retain major employers and preserve highly skilled jobs,” MEDC President and CEO James C. Epolito said. “Helping our companies stay competitive is the best possible use of state resources.”
The Michigan Economic Development Corporation, a partnership between the state and local communities, promotes smart economic growth by developing strategies and providing services to create and retain good jobs and a high quality of life. For more information on MEDC initiatives and programs, visit the Website at www.michigan.org.
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