Tuesday, January 18, 2005
Michael Shore, MEDC
Raymond James to Invest $15 Million for New Regional Operations Center in Southfield
Governor Jennifer M. Granholm today announced that Raymond James & Associates, a leading U.S. financial services company, plans to locate its regional operations center in Southfield, creating 311 new jobs. Assistance offered through the Michigan Economic Development Corporation helped convince the company to locate the $15 million facility in the state instead of a competing location in Texas.
"The new Raymond James operations here will create momentum for further job creation in southeast Michigan," Granholm said. "The company's decision to locate here is yet another indicator that our favorable business climate is a magnet that continues to attract investment from top-notch global employers."
The expansion of Raymond James is one of three major economic development projects the Governor announced today. In all, they are expected to create a total of 619 Michigan jobs.
"Although competition for this operation was keen in other parts of the country, Raymond James did not want to uproot its excellent staff living in the greater Detroit area," said Raymond James Senior Vice President Elliott Stern. "The support provided by the Michigan Economic Development Corporation, Oakland County and the city of Southfield certainly added to our decision."
The city of Southfield is considering a local tax abatement valued at $193,000 over three years in support of the project.
A University of Michigan economic analysis estimates that 111 indirect Michigan jobs will be created as a result of increased economic activity associated with the expansion, in addition to the 200 jobs created directly by the company. The project is expected to generate more than $160 million in personal income for Michigan workers over the life of the tax credit.
The MEDC approved a Single Business Tax credit valued at approximately $2.1 million to win the project.
"Raymond James is a well-respected institution," MEDC President and CEO Don Jakeway said. "We are proud that the company has chosen to grow in Michigan and create jobs for our talented workforce."
Raymond James & Associates is a subsidiary of Florida-based Raymond James Financial, Inc. (RJF). Founded in 1962, RJF is one of the largest financial services firms in the United States and has 2,200 locations worldwide. The company currently employs 243 in Michigan.
In her 2004 State of the State address, Governor Granholm announced her plan to make Michigan a global economic powerhouse in the 21st century. In 2004 the Governor and the MEDC announced the creation or retention of more than 54,000 jobs as a result of targeted assistance provided by the MEDC. Overall, during 2004, the Governor announced the creation or retention of some 130,000 jobs by all state agencies.
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.
Raymond James Associates
(All estimates in 2005 dollars)
|TOTAL JOBS CREATED||311|
|NET POSITIVE STATE REVENUE IMPACT||$10,147,000|
|Personal Income Generated Over|
Life of the Tax Credit Agreement