Tuesday, October 19, 2004
Paul Krepps, MEDC
Company Chooses Michigan over Indiana for $800,000 Project
Governor Jennifer M. Granholm announced today that E.A.B. Fabrication Inc. will expand its operations and build a new facility in Quincy, creating 137 new jobs for Michigan workers, including 75 jobs created directly by the company. The expansion is a result of assistance offered through the Michigan Economic Development Corporation (MEDC).
The MEDC approved a Single Business Tax (SBT) credit valued at $331,000 to help convince the company to choose Michigan over a competing site in Indiana. The expansion is expected to generate $800,000 in private investment.
The Governor recently signed a law designed to attract and retain high-paying jobs in rural areas. The law allows the Michigan Economic Growth Authority (MEGA) to grant SBT credits to companies willing to expand or locate in counties with a population of less than 75,000. Among the main requirements is that the company create up to 25 jobs within the first five years of the project.
"This new law will allow E.A.B. Fabrication to develop a higher skilled labor force in the community," said E.A.B. President Ed Bowerman.
The village of Quincy is expected to support the expansion with a property tax abatement worth an estimated $100,900 over 12 years. In addition, the village will sell five acres of land within a local industrial park at a reduced rate and extend water, sewer and electrical utilities to the site. The value to the company of the land sale and utility extension is an estimated $40,000.
"Without this incentive package, these jobs would have gone across the border to Indiana," said MEDC President and CEO Don Jakeway. "We appreciate E.A.B.'s continued commitment to its top-notch workforce and the state of Michigan."
In addition to the tax credit, the MEDC also offered E.A.B. an Economic Development Job Training (EDJT) grant worth up to $12,500 to train 25 new workers.
Established in 2002 in Quincy, E.A.B. is temporarily based in nearby Reading due to a fire which destroyed the original facility. The company primarily supplies material handling and storage containers for automotive parts manufacturers.
In her 2004 State of the State address, Governor Granholm announced her plan to make Michigan a global economic powerhouse in the 21st century. So far this year, the Governor and the MEDC have announced the creation or retention of approximately 30,794 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.
E.A.B. Fabrication Inc.
(All estimates in 2004 dollars)
|TOTAL JOBS CREATED||137|
|NET POSITIVE STATE REVENUE IMPACT||$3,692,000|
|Personal Income Generated Over||$52,256,000|