September 20, 2006
September 19, 2006
Projects expected to create and retain more than 1,000 jobs
Governor Jennifer M. Granholm today announced that the Michigan Economic Development Corporation is helping four companies expand their operations and is backing five brownfield redevelopment projects, expected to create and retain a total of 1,009 jobs and involve $106.5 million in private investment in communities throughout Michigan.
“Our Jobs Today, Jobs Tomorrow economic plan is producing results,” Granholm said. “These latest company expansions and redevelopment projects will mean more than 1,000 jobs and new opportunities for families in communities throughout the state.”
The nine projects announced today:
• Grid4 Communications Inc. will invest $500,000 to expand its headquarters in Troy, including the installation of a state-of-the-art data center to support new products and services for Michigan businesses. The project will create 48 new jobs, including 33 directly by the company. A Single Business Tax credit valued at $501,000 over six years helped convince the company to choose Michigan over competing sites in Florida and Texas. The city of Troy has proposed a six-year tax abatement valued at $17,485 to support the project.
• Hi-Lex Controls Inc. will invest $26.8 million to expand its operations in Hudson and Litchfield. The project will create 395 new jobs, including 208 directly by the company. A Single Business Tax credit valued at $1.2 million over seven years as well as well as a $1 million Community Development Block grant and a $120,000 Economic Development Job Training grant helped convince the company to grow in Michigan instead of a competing site in Ohio. The villages of Hudson and Litchfield have proposed 12-year tax abatements totaling $2.2 million to support the project.
• Siemens Water Technologies Corporation plans to invest nearly $3 million in its Holland facility, a project that is expected to create 127 new Michigan jobs, including 80 directly by the company. A Single Business Tax credit valued at $1.1 million along with a $40,000 Economic Development Job Training grant helped convince the company to expand in Michigan instead of a competing site in Georgia. Holland Township has proposed a 12-year tax abatement valued at approximately $327,000 to support the project.
• The Tech Group Grand Rapids will invest $12.4 million to upgrade its custom injection molding facility in Walker to manufacture a new product line. The project will create 164 new jobs, including 105 directly by the company. A Single Business Tax credit valued at more than $1.8 million over seven years helped win the company’s investment over competing national and international sites. The city of Walker has proposed a 12-year tax abatement valued at $936,619 to support the project.
• The city of Detroit will team with Motown Construction Partners LP to redevelop the historic Broderick Tower on Woodward Avenue at Grand Circus Park. The adjacent one-story building at 1556 Woodward will be connected to the 35-story skyscraper to provide first-floor dining and retail space. The tower’s second, third and fourth floors will be converted for commercial use while floors five through 34 will be made into apartments. State and local tax capture valued at more than $3.1 will support the project, which is expected to create 95 new jobs and generate more than $43.8 million in private investment. Motown was awarded a $3.9 million brownfield Single Business Tax credit for the project last August.
• The city of Hazel Park will use state and local tax capture valued at $74,483 to help Capital Sales Company expand its warehouse, packaging and distribution operation at 1471 East Nine Mile Road by 38,000 square feet. The project will create 30 new jobs, retain 30 and generate $2 million in private investment. Capital was awarded a $200,000 brownfield Single Business Tax credit for the project last December.
• The city of Grand Rapids will utilize state and local tax capture valued at $318,550 to help Tallgrass Properties LLC develop a 2.5-acre site in the city adjacent to Steel Supply and Engineering for expansion of the company’s miscellaneous metals division. The project involves demolition of existing structures, a 12,000-square-foot addition to the existing facility and conversion of a showroom to office space. It will create new 20 jobs, retain 90 and generate $2.3 million in private investment.
• The city of Big Rapids will use state and local tax capture valued at $85,765 to support Lake-Osceola State Bank in restoring a building formerly housing a bookstore to its original use as a bank. The 6,300-square-foot structure will be primarily devoted to bank operations, with 1,000 square feet devoted to retail. Developers will invest $984,886 in the project expected to create seven jobs.
• The city of Manistee will help Manistee Lakes LLC redevelop three contaminated waterfront sites. The project, supported by state and local tax capture valued at $1.4 million, includes demolition of a vacant factory and motel, site preparation and construction of six two-story residential buildings with a total of 40 condo units in addition to shore wall areas, 36 boat docks, swimming pool and other recreational amenities. The developers will invest more than $14.8 million in the project which is expected to create three jobs.
"Michigan’s competitive business climate, high- quality workforce and world-class communities continue to attract new investment and jobs to the state,” MEDC President and CEO James C. Epolito said. “When you combine those strengths with innovative economic development programs and strong state-local collaboration, you get great results.”
In her 2006 State of the State address, Granholm emphasized the importance of making Michigan a global economic powerhouse in the 21st century. Since January 2005, the Governor and the MEDC have announced the creation or retention of more than 152,000 jobs as a result of targeted assistance provided by the MEDC.
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 the MEDC’s initiatives and programs, visit the Web site at www.michigan.org.
