June 15, 2010
June 15, 2010
Companies investing more than $382 million to grow in Michigan
LANSING - Governor Jennifer M. Granholm today announced that the Michigan Economic Development Corporation (MEDC) is helping 10 companies grow in Michigan and backing three brownfield redevelopment projects. Combined, the 13 projects are expected to create and retain 10,884 jobs (1,001 direct new jobs) and generate $382.5 million in new investment in the state.
"We're continuing to work hard to diversify Michigan's economy, bring new investment to the state and create jobs," Granholm said. "Companies are choosing to invest in Michigan because of our competitive business climate, skilled workforce and strong public-private partnerships."
The Michigan Economic Growth Authority (MEGA) board today approved incentives to win the following projects for Michigan over competing states and countries:
Detroit Diesel - The manufacturer of heavy-duty diesel engines for the commercial truck market plans to invest $194 million to expand its existing operations in Redford Township to install new manufacturing processes used in the production of diesel engines. The project is expected to retain up to 7,704 total Michigan jobs, including 1,900 directly at the company. The MEDC estimates the increased economic activity created by the project has the potential to retain an additional 5,804 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $56.8 million over 11 years to convince the company to expand in Michigan over a competing site in Mexico. The charter township of Redford has approved an abatement in support of the project. http://www.detroitdiesel.com/
Fisher & Company Inc. - The manufacturer of automotive seat systems and components plans to invest $14.8 million for new programs at its facilities in St. Clair Shores and Sterling Heights. The project is expected to create up to 489 total jobs, including 138 directly at the company. The MEDC estimates the increased economic activity created by the project has the potential to create an additional 351 indirect jobs. In addition, the project is expected to retain 189 jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $778,358 over seven years to convince the company to make the investment in Michigan over a competing site in Mexico. The city of St. Clair Shores has approved an abatement in support of the project. http://www.fisherco.com/
Gordon Food Service Inc. - The largest family-owned broad line foodservice distributor in North America plans to invest $24.2 million to consolidate facilities to a single location in Wyoming. The company is expected to create up to 400 total jobs, including 173 directly at the company. The MEDC estimates the increased economic activity created by the project has the potential to create an additional 227 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $1.7 million over five years to convince the company to consolidate in Michigan over a competing site in Canada. The city of Wyoming is considering an abatement in support of the project. http://www.gfs.com/en
Grand River Interactive Inc. - The e-commerce company that leverages and builds open-source technologies to develop and integrate retail e-commerce solutions plans to invest $1 million to expand in Ann Arbor. The project is expected to create up to 100 new jobs, including 48 directly at the company. The MEDC estimates increased economic activity created by the project has the potential to create an additional 52 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $361,376 over five years to help convince the company to expand in Michigan over a competing site in Wisconsin. The city of Ann Arbor is considering an abatement in support of the project. http://www.thegrandriver.com/
NanoBio Corporation - The biopharmaceutical company that develops and commercializes products for the treatment and prevention of infectious diseases plans to invest $1.4 million to expand its operations in Ann Arbor by building new research labs to develop vaccines. The project is expected to create up to 67 total jobs, including 32 directly at the company. The MEDC estimates the increased economic activity created by the project has the potential to create and retain an additional 35 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $434,378 over five years to encourage the company to expand in Michigan over a competing site in Virginia. The city of Ann Arbor is considering an abatement valued at $800,000 over five years in support of the project. http://www.nanobio.com/
National Logistics Management Co. - The subsidiary of Landstar, Inc. is a full-service provider of supply-chain logistics solutions and technology and plans to invest $12.5 million to retain and expand existing operations in Southfield. The company is expected to create up to 163 news jobs, and retain an additional 122 employees. The MEDC estimates the increased economic activity created by the project has the potential to create and retain an additional 251 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $2.7 million over five years to convince the company to expand in Michigan over competing sites in Illinois and Florida. The city of Southfield is considering an abatement in support of the project. https://www.nlmi.com
Nexcess.net LLC - The Dearborn-based Web-hosting company plans to invest $4.2 million to convert a building in Southfield into a data center to support its Web-hosting and software-development operations. The project is expected to create up to 92 total jobs, including 41 directly at the company. The MEDC estimates the increased economic activity created by the project has the potential to create an additional 51 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $202,081 over six years to encourage the company to expand in Michigan over competing sites in Indiana and Illinois. The city of Southfield is considering an abatement valued at up to $35,713 to support the project. http://www.nexcess.net/
SPX Corporation - A Fortune 500 global, multi-industry provider of engineered technologies with a focus on infrastructure, process equipment and diagnostic tools plans to invest $402,000 over the next five years to expand in Warren in order to provide support to automotive companies launching plug-in electric vehicles. The project is expected to create up to 70 total jobs, including 34 directly at the company by the year 2015. The MEDC estimates the increased economic activity created by the project has the potential to create an additional 36 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $377,672 over five years to convince the company to expand in Michigan. The city of Warren is considering an abatement of up to $10,000 in support of the project. http://www.spx.com/en/
WABCO North America LLC - WABCO, a global technology leader and tier-one supplier to the commercial vehicle industry, plans to invest $6.2 million to create a new division in Rochester Hills to expand its product offering into North America. The company is expected to create up to 929 total jobs, including 274 directly by the company. The MEDC estimates the increased economic activity created by the project may create an additional 655 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 convince the company to expand in Michigan over competing sites in Canada and Indiana. The city of Rochester Hills is considering an abatement in support of the project. http://www.wabco-auto.com/
Witzenmann LLC - The subsidiary of Witzenmann GmbH, one of the world's leading manufacturers of flexible metallic components, plans to invest $13.1 million to expand in Troy. The project is expected to create up to 267 total jobs, including 75 directly at the company. The MEDC estimates the increased economic activity created by the project has the potential to create an additional 192 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $553,705 over five years to convince the company to expand in Michigan over a competing site in Alabama. The city of Troy is considering an abatement valued at up to $325,354 over 10 years in support of the project. http://www.witzenmann.com/
Federal Building Partners LLC - The project will redevelop the historic federal building, which houses the Grand Rapids Art Museum, in downtown Grand Rapids into LEED-certified classrooms, administrative offices, additional exhibit space and a café for use by area students, faculty staff and the general public. Based on the MEDC's recommendation, the MEGA board today approved a brownfield tax credit valued at up to $4.1 million. The project is expected to generate approximately $28.5 million in private investment and create up to 13 jobs.
Ford Motor Company - A $10 million brownfield tax credit will help Ford redevelop the Wayne Stamping Plant, which is part of the Michigan Assembly Complex in Wayne, so it can produce parts for the new Ford Focus as well as Ford's next-generation hybrid and plug-in vehicles. The project is expected to generate approximately $80 million in private investment and retain up to 100 jobs (previously announced by the company and the state of Michigan.)
City of Alpena - State and local tax capture valued at $221,500 will support a brownfield project to redevelop the currently vacant former Fletcher Motel property at 1001 U.S. 23 North into an auto dealership and service center. A new 17,850 square-foot building will be constructed. The project is expected to generate $2.2 million in new capital investment, create up to 10 new jobs, and retain 18 jobs.
"The projects announced today are proof positive that business leaders from around the nation and world are bullish on Michigan's economic transformation," 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 (MBT) to companies expanding or relocating their operations in Michigan. Since January 2010, nearly 57,300 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 (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 website at www.MichiganAdvantage.org. For updates on MEDC programs, events, success stories and more, follow us on Twitter (www.twitter.com/MIAdvantage), become a fan on Facebook (www.Facebook.com), read our blog at http://blog.michiganadvantage.org.
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