March 13, 2007
March 13, 2007
Companies investing over a half a billion dollars in Michigan
Governor Jennifer M. Granholm today announced the Michigan Economic Development Corporation is helping eight companies grow in Michigan and is backing two redevelopment projects expected to create and retain a total of 14,358 jobs and involve more than $714.7 million in new capital investment in communities throughout the state.
"Our aggressive economic plan, our first-class workforce and our pro-business climate are convincing companies across the nation and across the globe to invest in Michigan and create and retain thousands of jobs in communities across the state," Granholm said.
The 10 projects announced today:
- FACTON Inc. High-tech software company FACTON, a leading software vendor in the area of cost process optimization (CPO) in Europe, plans to invest $1 million to locate its new North American office in Auburn Hills. The project will create 93 new Michigan jobs, including 59 directly by the company. FACTON currently focuses on the automotive industry and helps companies perform cost analysis, simulations and optimizations of future product costs. A state tax credit valued at $509,000 over five years helped convince the company to choose Michigan over a competing site in North Carolina. The city of Auburn Hills has proposed a tax abatement for up to eight years worth $11,000 to support the project. The affiliate of FACTON GmbH was formed to safeguard employment in the US automotive market by its cost process optimization software.
- Kostal of America Inc. The subsidiary of the Kostal Group will relocate its Novi operations to Troy and expand to become one of three new Kostal Group international research and development centers of excellence. The expansion will create 203 new high-tech jobs and involve approximately $13.6 million in capital investment. A state tax credit valued at more than $5 million over 10 years helped win the company's investment and new jobs over a competing site in Canada. The MEDC will provide job training assistance through the Economic Development Job Training program and the city of Troy has proposed a 12-year tax abatement valued at $255,180 to support the project
- MBtech Autodie, LLC. A company within the MBtech Group plans to invest approximately $5 million in the former Autodie facility in Grand Rapids. The project is expected to retain 422 Michigan jobs, including 200 directly by the company. A state tax credit valued at more than $2.6 million over eight years, combined with six-year, tax-free Redevelopment Renaissance Zone valued at $1.1 million and supported by the city of Grand Rapids, helped convince the company to invest and keep jobs in Michigan. The MEDC's ability to support MBtech was made possible by changes in the Michigan Economic Growth Authority Act and the Michigan Renaissance Zone Act enacted by the Legislature and signed by Governor Granholm last December.
- General Motors is considering a potential investment of approximately $225.5 million in Orion Assembly for a new vehicle product and Saginaw Metal Casting for a new casting program. In addition, GM is considering future investments of approximately $274.5 million in other projects in Michigan over the next two to three years. Combined, the projects would retain 6,711 jobs including 880 directly by the company. A state tax credit valued at $6.6 million over 10 years helps ensure that the plants remain open as GM looks to achieve cost savings and efficiencies. To support the potential project, Orion Township has proposed a local abatement valued at approximately $70,000 and the city of Saginaw will provide assistance through the local Workforce Development Board.
- Delphi Corporation plans to invest $42 million to consolidate R&D, engineering and business operations to a single location in Auburn Hills. The project will retain 2,004 jobs including 910 directly by the company. A state tax credit valued at $12.1 million over seven years helped make the case for a Michigan location rather than competing sites in Mexico, China and Poland. Auburn Hills has proposed an eight-year abatement worth approximately $70,000 to support the project.
- Lycera Corporation plans to invest $676,000 to establish operations in Ann Arbor SPARK's proposed wet lab incubator. The project is expected to create 34 new jobs, including 28 directly by the company. A state tax credit valued at $499,000 over five years helped convince the start-up pharmaceutical company to grow in Michigan. Ann Arbor SPARK has proposed a subsidized lease at their incubator worth $444,000 over five years. They are also offering $150,000 worth of used lab equipment through their Michigan Innovation Equipment Depot program.
- Netlink Software Group will invest $4 million to expand and relocate its facilities from Southfield to Madison Heights. The project is expected to create 473 new jobs, including 298 directly by the company. A state tax credit valued at $3.6 million over seven years helped convince the provider of professional information technology services to choose Michigan over a competing site in Denver, Colorado. Madison Heights will propose a tax abatement to support the project.
- The Hybrid Development Center in Troy, a joint venture of GM, DCX and BMW, is being supported by a state tax credit valued at approximately $19.1 million over the next 10 years. The three companies will create and retain a combined 437 jobs at the center.
- State and local tax capture valued at $12,661,770 will support the redevelopment of a 206.4-acre industrial property in Grand Rapids bounded by 36th and 44th streets and Eastern Avenue and formerly owned by Steelcase. Developer Ashley Capital will undertake demolition of six obsolete manufacturing buildings, redevelopment of 12 existing industrial and support structures and construction of just over three million square feet in new industrial, commercial and residential facilities. The new complex will generate $145 million in new capital investment and create more than 3,960 new jobs.
- Redford Township Medical Building LLC will utilize a brownfield Single Business Tax credit valued at $167,420 and state and local tax capture valued at $167,000 to demolish existing structures at 15502-15534 Beech Daly Road and build a new 12,000-square-foot facility to house pulmonary, physical therapy and family practice offices affiliated with nearby Botsford Hospital. The township will contribute approximately $1.9 million to the project which includes land purchase, road construction and façade and streetscape improvements. As many as 30 professional and support jobs will be created on total project investment of $3.1 million. The project was supported by the Michigan State Housing Development Authority.
"We are redoubling our efforts to win new corporate investment and jobs," MEDC President and CEO James C. Epolito said. "We went toe-to-toe with other states and countries for these projects and in the end, our strong business climate and outstanding workforce sealed the deal."
In her 2007 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 181,000 jobs as a result of targeted assistance provided by the MEDC.
"Over the past years, MSHDA and MEDC have developed a very effective working relationship, and we are proud to collaborate with MEDC on these projects." MSHDA Executive Director Michael DeVos said. "This partnership will go a long way in not only helping develop and revitalize traditional downtowns and commercial centers but also improve the quality of life for those living in these communities."
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.
MSHDA is a quasi-state agency that provides financial and technical assistance through public and private partnerships to create and preserve safe and decent affordable housing, engage in community economic development activities, and address homeless issues. MSHDA's loans and operating expenses are financed through the sale of tax-exempt and taxable bonds and notes to private investors, not from state tax revenues. For more information on MSHDA programs and initiatives, visit the Web site at www.michigan.gov/mshda.
