April 17, 2007
April 17, 2007
Companies investing over $167 million in Michigan
Governor Jennifer M. Granholm today announced the Michigan Economic Development Corporation (MEDC) is helping seven companies grow in Michigan and is backing three redevelopment projects expected to create and retain a total of 4,237 jobs and involve more than $167.7 million in new capital investment in communities throughout the state.
"Companies throughout the country and across the globe are choosing to invest and grow in Michigan as the result of our competitive business climate and first-rate workforce," Granholm said. "As we continue to go anywhere and do anything to diversify and grow our economy, these companies are bringing jobs and investments to communities throughout Michigan."
The 10 projects announced today:
- Cayman Chemical Company Inc. The manufacturer of biochemical research products will invest $9.7 million in a multi-phase, 40,000-square-foot expansion in Pittsfield Township. The expansion will create 525 new jobs, including 208 directly by the company. A state tax credit valued at more than $3.1 million over 10 years helped win the company's investment and new jobs over a competing site in the Czech Republic. Pittsfield Township has approved local tax abatements estimated at $409,000 for up to 10 years to support the project.
- DaimlerChrysler Corporation The state of Michigan is offering the automaker substantial incentives to locate a new engine plant at the site of the DCX Trenton Engine Plant. The project would retain 1,324 Michigan jobs, including 485 directly by the company. A state tax credit valued at more than $11.2 million over eight years has been offered to help convince the company to invest in Michigan. The city of Trenton is considering local abatements worth $66.9 million up to 12 years to support the project.
- IAV Automotive Engineering Inc. The subsidiary of Germany-based IAV GmbH will invest $18.2 million to relocate and expand its current engineering operation from Ann Arbor to Northville Township. The expansion will create 198 new jobs, including 107 directly by the company. A state tax credit valued at more than $3 million over 12 years helped convince the company to choose Michigan instead of a competing site in Ontario. Northville Township is considering a 12-year abatement worth $1.4 million to support the project.
- Keihin Corporation Japan-based Keihin Corporation, through its North American subsidiary Keihin Indiana Precision Technology Inc. (KIPT), will build a $22-million manufacturing facility in the village of Capac in St. Clair County. The new plant will create 570 new jobs, including 260 directly by the company. A state tax credit valued at more than $3 million over 11 years helped win the company's investment and new jobs over a competing U.S. site. The village of Capac is considering a 12-year abatement estimated at $2.3 million to support the project.
- Microposite Inc. The designer, developer and manufacturer of advanced composite materials for applications in the construction industry and the oil exploration and transmission industry will invest $7 million to relocate its headquarters from Novi and expand into an existing facility in Auburn Hills. A state tax credit valued at $468,000 over five years helped convince the to expand in Michigan instead of competing sites in Kentucky and Mississippi. The project will create 101 new jobs, including 62 directly by the company. Auburn Hills has approved a three-year tax abatement valued at $129,000 to support the project.
- Seissenschmidt Corporation The North American subsidiary of Germany-based Seissenschmidt-Group will invest an initial $1.3 million to locate its new North American headquarters at Wurtsmith Air Force Base in Oscoda Township. The project will create 152 new jobs, including 85 directly by the company. A state tax credit valued at $516,000 over seven years helped convince the company to invest and grow in Michigan. The MEDC will provide a Community Development Block Grant to assist with building improvements. In addition to Wurtsmith's current tax-free Renaissance Zone designation, Oscoda Township has proposed a low-cost lease worth $12,000 annually to support the project.
- World Alliance Financial Corp. f/k/a Vertical Lend Inc. The rapidly growing provider of financial services specializing in residential and reverse mortgage loans, has chosen Troy over Jacksonville, Florida for a new regional headquarters with the help of a $3.5 million state tax credit over five years. The company plans to invest $835,000 in the headquarters which will serve three primary purposes: mortgage originator/call center, corporate data center and regional administrative services. This new operation, the first in Michigan, will create 619 jobs, including 350 directly by the company. The city of Troy is proposing a $20,000 start-up grant to support the project
- Tierra Equities LLC/ Ann Arbor State and local tax capture valued at $564,600 and a brownfield Single Business Tax credit valued at up to $720,000 will support the redevelopment of contaminated property located at 200 South Ashley Street in downtown Ann Arbor. Developer Tierra Equities LLC will demolish the existing building on the site and construct a 26,000-square-foot complex that will include retail and office space and five condominium units. The new development will generate over $9.6 million in new capital investment and create eight new jobs and retain 30. The Ann Arbor Downtown Development Authority has also offered a $281,950 grant to help with infrastructure development related to the project. The project was supported by the Michigan State Housing Development Authority (MSHDA).
- XY LLC/Ann Arbor A brownfield Single Business Tax credit valued at more than $8.4 million and state and local tax capture valued at $3.6 million will be utilized to redevelop the former YMCA building in downtown Ann Arbor. The developer will demolish the existing structure and build a new complex that will house 117,000 square feet of commercial and retail space, 100 housing units, and a 205-room hotel with restaurant and banquet facilities. The base of the building will also house a new Ann Arbor Transit Authority bus center. The project is expected to create 700 new jobs and $95.8 million in private investment. The city of Ann Arbor and its downtown development authority are contributing more than $34 million to the project in the form of tax credits, grants and other funding. The project was supported by MSHDA.
- Infinity Companies LLC/Grand Rapids A $282,923 brownfield Single Business Tax credit and state and local tax capture valued at $197,448 will support the redevelopment of the former Loose Leaf Bindery building located at 333-351 Commerce Avenue SW in Grand Rapids. Developer Infinity Companies LLC will renovate and expand the existing structure to include 39 loft apartments and 2,705 square feet of commercial space to include a coffee shop. The project will generate more than $3.3 million in new capital investment and create more than 10 new jobs.
"These 10 projects signal that Michigan is open for business and committed to helping companies grow and compete in today's global economy," MEDC President and CEO James C. Epolito said. "We are ramping up our efforts to transform our economy and the world's most innovative companies are lining up to be a part of that transformation."
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 186,000 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.
