January 19, 2010
LANSING - Governor Jennifer M. Granholm today announced that the Michigan Economic Development Corporation (MEDC) is helping seven companies grow in Michigan and is backing one brownfield redevelopment project. Combined, the eight projects are expected to create 5,210 new jobs (2,581 direct and 2,629 indirect), retain 415 jobs and generate over $76.8 million in new investment in the state.
The projects include a Mumbai, India-based IT company that plans to establish a Business Protection Services center in Midland; the manufacturer of alternative-energy products building a research and development facility in Blissfield, and a brownfield redevelopment in Wyandotte that will transform an abandoned site into a new center of economic growth and activity.
"The scope of these projects demonstrate that Michigan has exactly what companies are looking for as they choose where to locate and grow their business - an aggressive economic growth strategy, a competitive business climate, innovative economic development tools and an outstanding workforce," Granholm said. "If companies are looking to invest and create jobs, we want them to know that Michigan is a great state to do business."
The Michigan Economic Growth Authority (MEGA) board today approved incentives to win the following projects for Michigan over competing states and countries:
BioDri - The manufacturer of alternative-energy products plans to invest $39.5 million to build a research and development facility, business development offices and a repair and maintenance facility in Blissfield. The project will create 653 new jobs, including 337 directly by the company. The Michigan Economic Development Corporation (MEDC) estimates increased economic activity created by the project will create an additional 316 indirect jobs. Based on the MEDC's recommendation, the Michigan Economic Growth Authority (MEGA) board today approved a state tax credit valued at $3.1 million to help convince the company to locate in Michigan over competing sites in Florida. The village of Blissfield is considering a 12-year abatement in support of the project.
ilumisys - The spinoff company of leading global technology provider Altair Engineering plans to invest $7.4 million to expand research and development of LED lighting technology, as well as ramp up manufacturing operations in Troy. The project will create 555 new jobs, including 213 directly by the company. The MEDC estimates increased economic activity created by the project will create an additional 342 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $4 million to help convince the company to expand in Michigan over competing sites in China and Ontario. Troy is considering a 12-year abatement to support the project.
Magneti Marelli Holiding USA - The subsidiary of Fiat Holdings plans to invest $4.5 million to consolidate its Michigan operations into one facility and expand operations in Auburn Hills. The project will create 200 direct jobs by the company. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $4 million to encourage the company to consolidate in Michigan over competing sites in Tennessee and North Carolina.
Colwell & Salmon Communications - The provider of inbound and outbound contact services to Fortune 500 companies plans to invest $4.9 million to expand its current call center in Livonia. The project will create 704 total jobs, including 502 directly by the company. The MEDC estimates the increased economic activity created by the project will create an additional 202 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $1.3 million over four years to encourage the company to expand in Michigan over a competing site in Texas. Livonia is considering an abatement to support the project. http://www.colwell-salmon.com/
Quality Metalcraft - The automotive prototyping, engineering and small-run production and assembly company will invest $1.7 million to design and manufacture aerodynamic fairings in Livonia. The project will create 137 total jobs, including 64 directly by the company. The MEDC estimates the increased economic activity created by the project will create an additional 73 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $455,648 over five years to encourage the company to expand in Michigan over competing sites in Tennessee and Mississippi. http://www.qualitymetalcraft.com/
Tata Consultancy Services - The IT services and consulting company based in Mumbai, India, plans to invest $12.5 million to establish a Business Protection Services center in Midland to provide core business services including finance consulting, order processing, information technology and other services. The project will create 500 jobs during the initial phase. In a subsequent phase, TCS plans to create 750 additional jobs in support of the project. The MEDC estimates the increased economic activity created by the project will create an additional 1,119 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $22.1 million over 10 years to encourage the company to expand in Michigan over a competing site in Ohio. The city of Midland is considering an abatement in support of the project. http://www.tcs.com/homepage/Pages/default.aspx
AxleTech LLC - A leading global supplier of planetary axles, brakes, drive train assemblies and transfer cases for specialty vehicles plans to invest $5.4 million in the project, which will consolidate four facilities into one in Troy. The project will retain 415 total jobs, including 107 directly by the company. The MEDC estimates the increased economic activity created by the project will retain an additional 308 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 Wisconsin. The city of Troy is considering an abatement valued at $35,404 in support of the project. http://www.axletech.com/
City of Wyandotte - State and local tax capture valued at $118,750 will support the redevelopment of a contaminated half-acre property on Biddle Avenue. The proposed project will demolish an abandoned auto service center to construct a new single-story building with space for a restaurant and retail use. The project will generate $1 million in new capital investment and create up to 15 jobs.
"These job-creating company expansions and brownfield redevelopment project are the result of successful collaboration and teamwork with our economic development partners around the state to bring these projects to Michigan against some very intense national and international competition," MEDC President and CEO Greg Main said.
The Michigan Economic Growth Authority (MEGA), the state's response to interstate competition for company expansions and relocations, may provide a refundable tax credit against the Michigan Business Tax to companies expanding or relocating their operations in Michigan.
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 (MEDC), 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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