©2016 Michigan Economic Development Corporation

All in a Day's Work: 40,728 Jobs Coming to Michigan

Wednesday, May 12, 1999

John Truscott
(517) 335-6397

  • General Motors Corporation will locate a plant in Lansing, creating 32,839 direct and indirect jobs;
  • Flagstar Bank will locate in Troy, creating 6,718 direct and indirect jobs;
  • Packerland Packing will locate in Gun Plain Township, creating 703 direct and indirect jobs; and
  • Behr America, Inc, will locate in Webberville, creating 468 direct and indirect jobs.
Approval of State Incentive Package BringsLansing GM Plant One Step Closer: 32,839 jobs for Lansing, State Governor John Engler announced today that General Motors Corporation has conditionally accepted a proposal that will create 32,839 new jobs in Michigan, including up to 1,511 created directly by the company in Lansing. Under the agreement, GM proposes to build a new manufacturing facility that will manufacture up to 211,000 vehicles annually. The project will require an investment in excess of $500 million dollars. "This project is a huge investment in the future of Lansing and a huge vote of confidence in the city and the state. By bringing this plant to Michigan, the state will gain over $2 billion in new revenues over the next 20 years, even after you factor in the value of our incentive package," Engler said. "The numbers of spin off jobs and the amount of money people will earn because of these jobs are mind boggling." GM will create over 1,500 new jobs in Lansing within three years of completion of the new plant. The company expects to begin production in the first quarter of 2002. According to an economic analysis commissioned by the Michigan Economic Development Corporation and done by the University of Michigan, GM's investment will generate an estimated 31,328 additional jobs in the state, primarily from increased purchases from Michigan suppliers and spending by people who receive income from the jobs at GM. The centerpiece of the $98.9 million state incentive package is a job creation tax credit approved today by the Michigan Economic Growth Authority worth an estimated $73 million over 20 years. The state is also offering approximately $10 million for infrastructure improvements to the site and approximately $2.2 million to help train employees of the new facility. In addition, the state is providing a property tax abatement worth $12.7 million over 12 years. Finally, the Department of Environmental Quality will provide a site reclamation grant of approximately $1 million and a low interest loan will assist with clean-up of any existing environmental problems on site. The GM project will provide more than $2.163 billion in revenue to the state over the life of the agreement, resulting in a net positive gain to the state of over $2.090 billion after the MEGA credit. The project is expected to generate over $27 billion in personal income. "While this package of incentives is large, the benefit to the community and to the state is much larger," Engler said. "For every dollar we invest in this project, we will collect more than $21 dollars in new tax revenue. This is a wonderful return on investment on a project worth fighting for." General Motors, founded in 1908, is the world's largest industrial corporation and vehicle manufacturer. The company is best known for designing, manufacturing and marketing vehicles, and has manufacturing, assembly or component operations in 50 countries. The Governor recognized the work of many groups, including the City of Lansing, Lansing Regional Chamber of Commerce's Capital Choice, the Lansing Board of Water and Light, the local United Auto Workers, the Blue Ribbon Committee especially the Quick Response Team, the Michigan Economic Development Corporation, the Michigan Department of Transportation and the Michigan Department of Environmental Quality for making the deal possible. Additional local incentive packages are pending. The company's acceptance of the package is contingent on reaching agreement on local incentives and a labor agreement.

General Motors Corporation
MEGA Analysis
Summary Estimates
(All estimates in 1999 dollars)

  • TOTAL JOBS CREATED 32,839
    • Direct 1,511
    • Indirect 31,328
  • NET POSITIVE STATE REVENUE IMPACT $ 2,090,727,000
    • Revenue Forgone $ 73,087,000
    • Revenue Gain $ 2,163,814,000
    • Average Wage $ 920/week
  • Personal Income Generated Over Life of MEGAAgreement $ 27,047,677,000
Troy Wins Major Expansion Project, Creating 6,718 JobsFlagstar Bank has accepted a proposal that will create 6,718 new jobs, including up to 2,600 created directly by the company in Troy. Flagstar Bank will build a new corporate headquarters and mortgage servicing facility in Troy, on a site already owned by the company. This will allow Flagstar Bank to handle exponential increases in the mortgage servicing end of their business. Troy was in competition with Texas for the project. "Flagstar Bank has made MEGA history by creating 2,600 jobs, the most jobs ever created directly by a company through MEGA," Engler said. "Their decision to expand their business in Michigan is a tremendous investment and another example of MEGA's effectiveness as an incentive. If Flagstar would have chosen Texas, Michigan would have lost 1,000 current jobs, and lost out on 2,600 new jobs." Flagstar Bank anticipates hiring up to 2,600 additional people over the next eight years. Its investment also will generate an estimated 4,118 additional jobs in the state, primarily from increased purchases and spending by people who receive income from the jobs at Flagstar Bank, according to an economic analysis done by the University of Michigan. Engler also announced the approval of a tax credit for Flagstar Bank worth an estimated $20.6 million over 15 years, approved by the Michigan Economic Growth Authority. "With the a combination of the MEGA tax credit and the economic development job training funds, we feel that the Michigan Economic Development Corporation has demonstrated a good faith effort to retain Flagstar Saving Bank in the state of Michigan," Robert Rondeau, Jr., executive vice president of Flagstar Bank said. "We are excited about growing our business in this cooperative environment." The Flagstar Bank project will provide more than $229 million in revenue to the state over the life of the agreement, resulting in a net positive gain to the state of over $209 million after the MEGA credit. The project is expected to generate over $2.8 billion in personal income. Flagstar Bank is a federally chartered stock savings bank founded in 1987. It is the largest independent savings institution headquartered in Michigan. Flagstar is the thirteenth largest residential mortgage originator in the U.S., servicing more than $11.5 billion of residential mortgages for other investors.

Flagstar Bank
MEGA Analysis
Summary Estimated
(All estimates in 1999 dollars)

  • TOTAL JOBS CREATED 6,718
    • Direct 2,600
    • Indirect 4,118
  • NET POSITIVE STATE REVENUE IMPACT $ 209,134,000
    • Revenue Forgone $ 20,595,000
    • Revenue Gain $ 229,729,000
    • Average Wage $ 340/week
  • Personal Income Generated Over Life of MEGAAgreement $ 2,871,617,000
Plainwell Area Wins Major Expansion Project, Creating 703 Jobs Packerland Packing has accepted a proposal that will create 703 new jobs, including up to 300 created directly by the company in Gun Plain Township. The expansion of this facility will allow Packerland Packing to increase its sales in the Midwest and the East Coast. The township was in competition with Green Bay, Wis., for the project. "Packerland's current investment in Michigan, plus the creation of 300 new, direct jobs is another step forward for Michigan's agricultural community," Engler said. "The MEGA tax credit has once again shown its effectiveness as a tool to level the national playing field for business attraction." The company's investment will generate an estimated 403 additional jobs in the state, primarily from increased purchases and spending by people who receive income from the jobs at Packerland Packing, according to an economic analysis done by the University of Michigan. Engler also announced the approval of a tax credit for Packerland Packing worth an estimated $5.6 million over 20 years, approved by the Michigan Economic Growth Authority. The company worked with the Michigan Economic Development Corporation and the Michigan Department of Agriculture on completing the agreement to build in Michigan. "The sale of this meat plant to Packerland and Packerland's acceptance of a MEGA grant is wonderful news for Michigan agriculture and workers in Plainwell," Michigan Department of Agriculture Director Dan Wyant said. "Packerland's excellent reputation and well-known presence in the industry will provide a strong market for the product from 12,000 cattle farms in this state for years to come." The Packerland project will provide more than $54 million in revenue to the state over the life of the agreement, resulting in a net positive gain to the state of over $48 million after the MEGA credit. The project is expected to generate nearly $700 million in personal income. "We are very excited to have a major part of our corporation located in Michigan," said Packerland president and CEO, Rich Vesta. "We have long felt that Michigan is a great state in which to do business, and we are pleased to be able to work with the cattle producers in this state." Packerland Packing is the parent company of Murco Foods, Incorporated. Murco is located in Gun Plain Township, near Plainwell. The company slaughters and processes beef. Currently, Murco purchases about 60 percent of its livestock (over $200 million) in Michigan. Packerland has processing facilities in Wisconsin, Nebraska and Arizona.

Murco Foods, Inc.
MEGA Analysis
Summary Estimated
(All estimates in 1999 dollars)

  • TOTAL JOBS CREATED 703
    • Direct 300
    • Indirect 403
  • NET POSITIVE STATE REVENUE IMPACT $ 48,945,000
    • Revenue Forgone $ 5,616,000
    • Revenue Gain $ 54,561,000
    • Average Wage $ 461/week
  • Personal Income Generated Over Life of MEGAAgreement $682,018,000
German Company Expands in Webberville, Creating 468 Jobs Behr America, Inc., has accepted a proposal that will create 468 new jobs, including up to 124 created directly by the company in Webberville. This new facility will require an investment of over $2 million for a building and over $9 million for machinery and equipment. The city of Webberville was in competition with Findlay, Ohio, for the project. "Behr's decision to locate in Michigan, and the 468 jobs it will bring, is great news for the state," Engler said. "Meeting with the Behr Group during my trip to Germany last month was time well spent. I was able to make a personal connection and see what was needed to convince them that Michigan was the right place for this project." Behr will create up to 124 new jobs in Webberville after completion of the new plant. Its investment also will generate an estimated 344 additional jobs in the state, primarily from increased purchases from Michigan suppliers and spending by people who receive income from the jobs at Behr, according to an economic analysis done by the University of Michigan. Engler also announced the approval of a tax credit for Behr worth an estimated $7.1 million over 20 years, approved by the Michigan Economic Growth Authority. A second plant may be added if business plans go well and pending future state and local negotiations. Behr also is reviewing possible sites for its proposed new technical center to be located near the Detroit area as part of the investment. The Behr project will provide more than $30 million in revenue to the state over the life of the agreement, resulting in a net positive gain to the state of over $23 million after the MEGA credit. The project is expected to generate nearly $400 million in personal income. The Behr Group, with its world headquarters in Stuttgart, Germany, is a leading international developer, manufacturer, and integrator of air conditioning, engine cooling, fan and clutch, components and modules for the automotive industry.

Behr America, Inc.
MEGA Analysis
Summary Estimated
(All estimates in 1999 dollars)

  • TOTAL JOBS CREATED 468
    • Direct 124
    • Indirect 344
  • NET POSITIVE STATE REVENUE IMPACT $ 23,641,000
    • Revenue Forgone $ 7,176,000
    • Revenue Gain $ 30,817,000
    • Average Wage $ 712/week
  • Personal Income Generated Over Life ofMEGA Agreement $ 385,215,000