May 20, 2008
LANSING - Governor Jennifer M. Granholm today announced that the Michigan Economic Development Corporation (MEDC) is helping five companies grow in Troy, Rochester Hills, Bay City, Canton and Greenville. In addition, the MEDC and Michigan State Housing Development Authority (MSHDA) are backing five redevelopment projects in Troy, Detroit, Grand Rapids and Lansing. Combined, the projects are expected to create 2,051 new jobs and generate $417 million in new investment in the state.
"These investments are great news for communities and job-seekers throughout our state, and we will continue to go anywhere and do anything to bring new jobs here," Granholm said. "Companies are choosing to invest in Michigan because of our competitive business climate, outstanding workforce, and our unmatched quality of life."
The 10 projects announced today are:
- EcoMotors International Inc. - The developer of next generation diesel engines plans to launch a new, $7-million technical center in Troy. The project is expected to create 156 jobs at the company and an additional 183 spin-off jobs. Based on the MEDC's recommendation, the Michigan Economic Growth Authority today approved a state tax credit valued at $5.1 million over 10 years to win the project over a competing site in California. The city of Troy is considering an abatement of up to 12 years to support the expansion. The company currently employs seven associates in Troy.
- Raval USA Inc. - The U.S. subsidiary of Israel-based Raval ACS Ltd. plans to invest approximately $7 million in a new design, development, and manufacturing facility in Rochester Hills. The company produces valves and venting systems for vehicle fuel tanks. The governor was scheduled to meet with the company in Israel before her investment mission planned for earlier this month was postponed. The project is expected to create 65 jobs at the company and an additional 169 spin-off jobs. Based on the MEDC's recommendation, the Michigan Economic Growth Authority today approved a state tax credit valued at $1.1 million over 10 years to win the project over a competing site in Tennessee. The city of Rochester Hills is considering an eight-year abatement worth $184,682 to support the project.
- TransIT Solutions LLC - The software development and consulting company, plans to invest approximately $3 million over the next five years to expand its operations in Bay City. The project is expected to create 247 new Michigan jobs, including 105 directly by the company. Based on the MEDC's recommendation, the Michigan Economic Growth Authority today approved a state tax credit valued at $986,000 over seven years to win the company's investment over competing sites in Arizona, California and Wisconsin. To support the project, the city of Bay City is considering a 12-year Industrial Facilities Tax Exemption abatement worth $138,500 and a 12-year Obsolete Property Rehabilitation Exemption worth $281,541.
- Marimba Auto LLC - The global supplier and manufacturer of tubular products will invest $16 million to relocate and expand its current operations from Belleville to Canton. The company plans to build a new 130,000 square-foot facility. The project is expected to create 170 new Michigan jobs, including 72 directly by the company. Based on the MEDC's recommendation, the Michigan Economic Growth Authority board today approved a state tax credit valued at $851,000 over seven years to win the company's investment over a competing site in Tennessee. Canton Twp. is considering a 12-year abatement worth $544,247 to support the project.
- Northland Corporation Inc. - The leading manufacturer of refrigerator/freezer systems will invest $10.2 million in a new 175,000 square-foot manufacturing and R&D facility in Greenville. The expansion is expected to create 337 new Michigan jobs, including 157 directly by the company. Based on the MEDC's recommendation, the Michigan Economic Growth Authority board today approved a state tax credit valued at $1.8 million over 12 years to win the company's expansion over a competing site in Indiana. In addition, the MEDC will make available up to $42,500 in job-training funds through the Economic Development Job Training program. To support the project, the city of Greenville is considering a 12-year abatement valued at $217,000, and the company will realize additional savings by locating the project in the Greenville Renaissance Zone.
- Pavilions of Troy - The city of Troy will use state and local tax capture valued at $13.2 million to support the new $320 million Pavilions of Troy redevelopment project on the 40-acre site of the former Kmart headquarters on Big Beaver Road. Developer Richardson Development Group, Inc. will demolish the vacant headquarters and transform the site into a pedestrian-friendly, mixed-use development that will include approximately 440,000 square feet of commercial/retail space, 132 residential units, public ice skating rink, 3,000 seat theater, restaurants, grocery store, and parking. The project is expected to create 500 new jobs.
- City of Detroit - State and local tax capture valued at $1.8 million will be used to support demolition of severely blighted and abandoned industrial and commercial buildings on 16 acres near the corner of Warren and Livernois in southwest Detroit. The Detroit Brownfield Redevelopment Authority will support construction of an 85,000 to 90,000 square-foot neighborhood commercial center for grocery and department stores and other commercial uses. The project will create 150 new jobs and generate $7.4 million in capital investment.
- City of Detroit - A five-story mixed-use commercial structure housing 10,000 square feet of retail space will rise on Cass Avenue near Warren at the heart of the Wayne State University campus in midtown Detroit, formerly a gas station site. The Detroit Brownfield Development Authority will use state and local tax capture of $429,998 to support the project which will create 64 residential suites in the upper four stories and 26 enclosed parking spaces. Total investment of $13 million is projected with 33 jobs created.
- SSGRCC LLC - The developer will use a state brownfield tax credit of $3.2 million to transform a vacant building on the site of the former Grand Rapids Foundry into a mid-price, extended-stay hotel at the corner of Trowbridge Street and Bond Avenue in Grand Rapids. The nine-story, 90,000-square-foot facility with 137 suites will be one of the highest density buildings in the Monroe North neighborhood and within walking distance of Michigan Street Medical Hill. The $21 million investment is expected to lead to creation of 30 new jobs.
- City of Lansing - State and local tax capture of $1.1 million will be used by Sycamore Street Partners LLC for three-phase residential and retail development on a contaminated site in Lansing. The Lansing Brownfield Redevelopment Authority will support construction of 70 condominiums and a 5,000-square-foot neighborhood retail center on Ottawa Street. It is designed as a "green" project incorporating open public green space, energy efficiency, and water-saving features. Creation of 11 jobs is anticipated on capital investment of $11.9 million.
"All of these projects are the result of successful state and local collaboration and teamwork with our economic development partners around the state to bring these projects to Michigan against some very stiff competition," MEDC President and CEO James C. Epolito said.
In her 2008 State of the State address, Granholm emphasized the importance of creating opportunity in the changing world of the 21st century. Since January 2005, the governor and the MEDC have announced the creation or retention of more than 237,000 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.TheMEDC.org.
# # #
