December 15, 2009
December 15, 2009
LANSING - Governor Jennifer M. Granholm today announced that the Michigan Economic Development Corporation (MEDC) is helping 10 companies grow in Michigan and is backing eight brownfield redevelopment projects. Combined, the 18 projects are expected to create 6,804 new jobs (2,236 direct and 4,418 indirect), retain 2,263 jobs, and generate over $672 million in new investment in the state.
The projects include a new-to-Michigan company that plans to assemble crystalline silicon solar panels in Saginaw, an automotive parts manufacturer that plans to expand into the aerospace sector in Traverse City, and brownfield redevelopments that will transform abandoned and contaminated sites into new centers of economic growth and activity.
"These expansion projects, located across the state and in different business sectors, are a great way to close out the year," Granholm said. "Companies are taking advantage of our excellent work force, competitive business climate and innovative economic development tools to locate or expand in Michigan. Our aggressive strategy to diversify and grow Michigan's economy is working."
The Michigan Economic Growth Authority (MEGA) board today approved incentives to win the following projects for Michigan over competing states and countries:
Morley Companies Inc. - The provider of services such as group travel, research and performance improvement to Fortune 500 companies plans to invest $3 million in an expansion to attract new business opportunities in Saginaw. The project will create 960 new jobs, including 700 directly by the company. The MEDC estimates increased economic activity created by the project will create an additional 260 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $8.1 million over 10 years to help convince the company to locate in Michigan over competing sites in Florida and Connecticut. Saginaw County is considering an abatement in support of the project. http://www.morleynet.com/
Magna Electronics - The automotive supplier is embarking on a new project to produce next-generation motors and state-of-the-art electric propulsion systems for hybrid and electric vehicles, beginning with the 2011 model-year Ford Focus. The company plans to invest $70.3 million to expand an existing facility and develop an adjacent brownfield facility in Grand Blanc Township. The project will create 1,766 new jobs, including 525 directly by the company. The MEDC estimates increased economic activity created by the project will create an additional 1,241 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $5 million over seven years to help convince the company to expand in Michigan over competing sites. Gland Blanc Township is considering an abatement valued at $701,639 to support the project. http://www.magna.com/capabilities/electronic-systems
US Farathane Corporation - The designer and manufacturer of plastic fabricated components plans to invest $51.7 million to consolidate and locate its world headquarters in Auburn Hills. The project will create 909 total jobs, including 398 directly by the company. The MEDC estimates the increased economic activity created by the project will create an additional 511 indirect jobs. The project will retain an additional 1,249 jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $3.7 million to encourage the company to consolidate in Michigan over competing sites in Tennessee, Indiana and Ohio. The MEGA board also approved a $7.2 million retention credit over seven years to keep jobs in Michigan. The city of Auburn Hills is considering an abatement to support the project. http://www.usfarathane.com/
SoundTech Inc. - The engineer and manufacturer of acoustical and thermal insulation products will invest $5.1 million to expand operations in Kentwood in order to enter new markets, including health care, education and hospitality. The project will retain 119 total jobs, including 51 directly by the company. The MEDC estimates the increased economic activity created by the project will retain an additional 68 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $513,923 over five years to encourage the company to expand in Michigan over competing sites in Alabama and Tennessee. The city of Kentwood is considering an abatement to support the project. http://www.soundtechinc.com/
Wacker Chemical Corporation - The producer of chemicals found in a wide array of industrial and consumer products plans to invest $23.7 million to consolidate its silicone fluids production operations to its Adrian facility. The project will retain 497 total jobs, including 156 directly by the company. The MEDC estimates the increased economic activity created by the project will retain an additional 341 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $4.4 million over 10 years to encourage the company to expand in Michigan over a competing site in China. Raisin Charter Township is considering an abatement valued at approximately $1 million to support the project. http://www.wacker.com/cms/en/home/index.jsp
Caparo Vehicle Components - The manufacturer of steel, automotive and general engineering products will invest $10.5 million to retain its facility in Novi. The project will retain 398 total jobs, including 117 directly by the company. The MEDC estimates the increased economic activity created by the project will retain an additional 281 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $1 million over five years to encourage the company to expand in Michigan over a competing site in Mexico. www.caparo.com
Skilled Manufacturing Inc. - The automotive parts manufacturer plans to invest $9.5 million to expand into the aerospace sector and produce jet-engine parts in a facility in Traverse City. The project will create 168 total jobs, including 73 directly by the company. The MEDC estimates the increased economic activity created by the project will create an additional 95 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $571,210 over seven years to encourage the company to expand in Michigan over competing sites in Arizona and Indiana. The city of Traverse City is considering an abatement valued at $748,000 in support of the project.
Azure Dynamics Inc. - The Oak Park developer of proprietary electric and hybrid-electric technology for light and heavy commercial vehicles plans to collaborate with the Ford Motor Company to deliver an electric-battery Ford Transit Connect van for the U.S. and Canadian markets. The company plans to invest $2.45 million in the project, which will create 83 total jobs, including 40 directly by the company. The MEDC estimates the increased economic activity created by the project will create an additional 43 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $1.3 million over seven years to encourage the company to expand in Michigan over a competing site in Ontario. The city of Oak Park is considering an abatement in support of the project. http://www.azuredynamics.com/
GlobalWatt Inc. - The new-to-Michigan photovoltaic module manufacturer plans to invest $177 million to create a fully integrated production line to assemble crystalline silicon solar panels in Saginaw. The project will create 2,768 total jobs, including 500 directly by the company. The MEDC estimates the increased economic activity created by the project will create an additional 2,268 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $14 million over seven years to encourage the company to expand in Michigan over a competing site in Texas. The city of Saginaw is considering an incentive valued at $13 million over 15 years in support of the project. http://www.globalwatt.com/
BAE Systems - The armaments and demolition company plans to consolidate three locations into its Sterling Heights facility to allow the integration of its technical, business and program management teams. The company will invest $70 million in the project, which will create 460 new jobs and retain 61 jobs. Based on the MEDC's recommendation, the MEGA board today approved a state brownfield tax credit valued at $6.9 million to encourage the company to expand in Michigan. http://www.baesystems.com/
City of Cadillac - Cobbs Mitchell Redevelopment - State and local tax capture valued at $231,193 will support the redevelopment of the historic Cobbs & Mitchell building in downtown Cadillac. The proposed project will restore the building with modern mechanical and electrical systems, elevator installation, and energy-efficient elements. The building will house a fine-dining restaurant and commercial office space. The project will generate $2 million in new capital investment and create 35 jobs.
Woodward Theatre LLC - The South Woodward Garden block project will renovate and construct three buildings in the midtown area of Detroit, restoring the historic Garden Theatre to its original use as a venue for music and performing arts and building two new mixed-use developments. Based on the MEDC's recommendation, the MEGA board today approved a state brownfield tax credit valued at $3.5 million to support the project, which will generate $24.7 million in capital investment and create 150 jobs.
Harbor Shores HV Construction - The project will redevelop approximately 13 acres of property as part of the larger Harbor Shores project in Benton Harbor. It will include approximately 200 condominiums and townhouses and 34,000 square feet of commercial and retail space. Also included in the project is a portion of the 12-mile trailway system with public access to a river walk, marina and commercial areas. Based on the MEDC's recommendation, the MEGA board today approved a state brownfield tax credit valued at $10 million to support the project, which will generate $95.8 in capital investment and create 20 jobs.
Harbor Shores BHBT Land Development - The project will construct new residential condominiums as part of the larger Harbor Shores project in Benton Harbor. Based on the MEDC's recommendation, the MEGA board today approved a state brownfield tax credit valued at $2.6 million to support the project, which will generate $27 million in capital investment and create 25 jobs.
Gardenview Homes IV LDHA LLC - The project is a multi-phase redevelopment of the former Herman Gardens Public Housing complex in Detroit. The overall redevelopment includes rental and homeownership units for mixed-income individuals. Based on the MEDC's recommendation, the MEGA board today approved a state brownfield tax credit valued at $3.1 million to support the project, which will generate $32.4 million in capital investment.
Delta Development LLC - The project will redevelop the building formerly occupied by the Observer & Eccentric newspapers in Livonia. The developer will abate the lead and asbestos from the building and properly dispose of hazardous materials before renovating the property to allow for the construction of a 20,000-square-foot addition. Based on the MEDC's recommendation, the MEGA board today approved a state brownfield tax credit valued at $1.9 million to support the project, which will generate $15.4 million in capital investment and create 35 jobs.
Cherry Stone LLC - The project will demolish four existing buildings in Grand Rapids to construct an 80,000 square-foot LEED-certified building providing a variety of health-related services and an adjacent parking structure. Based on the MEDC's recommendation, the MEGA board today approved a state brownfield tax credit valued at $3.1 million to support the project, which will generate $32 million in capital investment and create 80 jobs.
The Minervini Group LLC - The project is the latest development within the broader redevelopment of the former Traverse City State Psychiatric Hospital, now known as The Village at Grand Traverse Commons. The three-phased project will redevelop over 96,000 square feet of empty and functionally obsolete historic buildings into a mixed-use residential, retail and commercial complex. Based on the MEDC's recommendation, the MEGA board today approved a state brownfield tax credit valued at $2.3 million to support the project, which will generate $20 million in capital investment and create 35 jobs.
The jobs and investment numbers for BAE Systems have previously been announced and are not included in today's jobs and investment totals.
"These projects demonstrate the spirit of collaboration alive in Michigan where the state and local communities can partner and make strong business cases to win investment and jobs from the world's most innovative companies over competing locations not only in the United States, but all over the world," MEDC President and CEO Greg Main said.
The Michigan Economic Growth Authority, the state's response to interstate competition for company expansions and relocations, may provide a refundable tax credit against the Michigan Business Tax (MBT) to companies expanding or relocating their operations in Michigan. Since January 2009, nearly 100,000 new and retained jobs have been announced as a result of the MEGA program.
Michigan brownfield programs provide incentives to invest in property that has been used for industrial, commercial or residential purposes and to keep that property in productive use or return it to productive use. Brownfield incentives can be used for functionally obsolete, blighted, or contaminated property.
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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