March 17, 2009
Investments total more than $177 million; four IT companies choose Michigan
LANSING - Governor Jennifer M. Granholm today announced that the Michigan Economic Development Corporation (MEDC) is helping nine companies grow in Michigan and is backing two brownfield redevelopment projects. Combined, the 11 projects are expected to create and retain 2,755 jobs (146 jobs retained) and generate over $177.8 million in new investment in the state.
"We are working the most aggressive economic plan in the nation to diversify and grow our economy and bring new jobs to Michigan," Granholm said. "The scope of these projects, including four IT companies choosing to expand in Michigan, shows that our plan to diversify the state's economy continues to produce results."
The 11 projects announced today are:
- Secure-24 Inc. - The provider of managed-hosting for the critical IT systems of middle-market companies and large enterprises plans to invest $3.7 million to expand operations in southeastern Michigan, which includes growth of its Southfield-based administrative offices. The expansion is due in part to a special partnership with Wayne County to create a new data center in Plymouth Township for technology, hosting services of 43 municipalities within the county. The MEDC estimates that increased economic activity created by the plan will create 503 new jobs, including 263 directly by the company. Based on the MEDC's recommendation, the Michigan Economic Growth Authority (MEGA) board today approved a state tax credit valued at $7.1 million over 10 years.
- Billhighway.com - The Web-based finance and accounting software provider that serves more than 1,450 organizations across North America, which has managed more than $1.6 billion in online transactions, plans to invest $5.7 million to expand operations in Troy to launch new programs. The project is expected to create 94 new jobs, including 43 directly by the company. The MEDC estimates that the increased economic activity created by the project will create an additional 51 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $1.1 million over 10 years to encourage the company to expand in Michigan over competing sites in Texas, Kentucky and Washington, DC. To support the project, Oakland County will provide an estimated $25,000 in job-training funds.
- Quantum Learning - The producer of online educational games used in schools across the nation will invest $930,000 to launch its first educational virtual-world computer game for the consumer market from its office in Ann Arbor. The company's online educational game for schools, SkateKids Online™, was recently named by the Software Information Industry Association as a finalist for a CODiE award in the "best educational game or simulation" category. The virtual-world project is expected to create 137 new jobs, including 47 directly by the company. The MEDC estimates that increased economic activity created by the project will create an additional 90 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $778,978 over seven years to convince the company to choose Michigan over competing sites in Illinois and Texas. The city of Ann Arbor will provide administrative assistance to support the project.
- Global Futures & Forex Ltd. - The Michigan-based online foreign currency and futures trading company will invest $13.8 million to move to a larger facility in Grand Rapids Township. The project will create 208 total jobs, including 105 jobs directly by the company, and retain 146 jobs at the company. The MEDC estimates that increased economic activity created by the project will create an additional 103 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at approximately $1.3 million over seven years to help convince the company to expand in Michigan over a competing site in Indiana. Grand Rapids Township approved a tax abatement to support the project.
- Emergent Biodefense Operations Inc. - The biopharmaceutical company focused on the development, manufacture and commercialization of vaccines and immune-related therapeutics anticipates investing $10.9 million to modify and expand its operations in Lansing. The project is expected to create 302 new jobs, including 93 directly by the company. The MEDC estimates that increased economic activity created by the project could also create an additional 209 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $3 million over 10 years to help convince the company to expand in Michigan over competing sites in other states. The city of Lansing has granted Emergent a tax abatement to support the project.
- Magna Electronics - The manufacturer of electronic products for the auto industry plans to invest $20 million to expand operations in Rochester Hills to include products for electric and hybrid vehicles. The project is expected to create 201 new jobs, including 90 directly by the company. The MEDC estimates that increased economic activity created by the project will create an additional 111 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $3.4 million to help convince the company to expand in Michigan over a competing site in another state. The city of Rochester Hills is considering an eight-year abatement valued at $139,271 to support the project.
- Emergency Technology Inc., d/b/a SoundOff Signal - An industry leader in police, school bus, and commercial vehicle safety products will invest $6.1 million over seven years to expand its current facility in Jamestown Charter Township (Ottawa County), which is expected to create 244 new Michigan jobs, including 100 directly by the company. The MEDC estimates that increased economic activity created by the project will create an additional 144 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $1.4 million over seven years to help win the project for Michigan over a competing site in China. Jamestown Charter Township is considering an abatement to support the project. In addition, the MEDC will provide an employee training grant of up to $25,000 through the economic development job training program.
- Mercedes-Benz Hybrid LLC - The subsidiary of Daimler AG will develop and maintain a line of conventional and alternative propulsion systems in a new, permanent research and development facility in Washtenaw County. The project will generate a $9.9 million investment and create 454 total jobs, including 223 directly by the company. The MEDC estimates that increased economic activity created by the project will create an additional 231 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at approximately $7.5 million over 10 years to help convince the company to expand in Michigan over a competing southern state. The Ann Arbor region will consider a tax abatement to also support the project.
- Meijer Distribution Inc. - The Michigan-based retailer plans to expand its distribution center in Newport to support the growth of the company. The project will generate $27 million in private investment and create 366 total jobs, including 190 directly by the company. The MEDC estimates that increased economic activity created by the project will create an additional 176 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $1.6 million to encourage the company to expand in Michigan over a competing site in Indiana. Berlin Township is considering an abatement to support the project. In addition, the MEDC will provide an employee training grant of up to $35,000 through the economic development job training program.
- City of Detroit - State and local tax capture valued at $856,225 support the redevelopment and conversion of the Detroit creamery building and surrounding areas into a luxury residential and retail complex. Phase I of the project will convert the 120,000-square-foot primary building into 93 loft apartments. Phase II will convert a secondary building into a common area with a swimming pool and fitness center. The project will generate $61 million in new capital investment and is expected to create up to 50 new jobs.
- Washtenaw County - State and local tax capture valued at $281,450 will support the redevelopment of the former Federal Screw Works manufacturing site in downtown Chelsea. The mixed-use development will include residential, commercial, and office spaces. The project is expected to generate $5 million in new investment and create up to 50 jobs.
"Successful collaboration and teamwork between the state and our economic development partners were keys in bringing these projects to Michigan against some very intense national and international competition," MEDC President and CEO James C. Epolito said. "I want to thank all of the communities who helped us make the strongest business cases possible."
In her 2009 State of the State address, Granholm emphasized the importance of creating jobs, diversifying Michigan's economy, and providing education and training to workers. Since January 2005, the governor and the MEDC have announced the creation or retention of more than 313,000 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.
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