Tuesday, February 15, 2005
Michael Shore, MEDC
Company Chooses Michigan over Nevada for $11 Million Project
Governor Jennifer M. Granholm today announced that Quicken Loans Inc., which includes Rock Financial and is the nation's largest online mortgage lender, plans to expand its headquarters operations in Livonia and create 1,555 new jobs including 500 directly by the company. Assistance offered through the Michigan Economic Development Corporation helped convince the company to invest $11 million in its existing Livonia facility and in a new additional site in Livonia, instead of a competing location in Nevada.
"Quicken Loans' winning business formula of high client satisfaction and high employee satisfaction has brought it phenomenal growth," Granholm said, noting that the company ranks #12 on FORTUNE magazine's list of the 100 Best Companies to Work for in America. "This expansion in Livonia means hundreds more Michigan workers will be able to be a part of this great company's success."
Today's is the second major Michigan expansion announcement by Quicken Loans in the past nine months. The company plans to open a new 36,000 square-foot Quicken Loans Web/Call center in Laurel Office Park, which it hopes will be operational by mid-April 2005. The company expects to create 350 new positions at this location and 150 new positions at its location on Livonia's Victor Parkway, in all a total of 500 new jobs for the city of Livonia. Quicken Loans is also continuing to hire at its Rock Financial branches in Auburn Hills, Troy, and Farmington Hills.
The expansion of Quicken Loans/Rock Financial is one of seven major economic development projects the Governor announced today. In all, they are expected to create and retain a total of 25,441 Michigan jobs.
The city of Livonia supported the project by providing a parking agreement for the mortgage lender's employees valued at $200,000.
"Quicken Loans and Rock Financial comprise one of the fastest growing mortgage lenders in the country," Dan Gilbert, Quicken Loans Chairman and founder said. "We close loans in all 50 states from our offices here in southeast Michigan. The state and local support will enable us to create new, high-quality jobs in Livonia and help diversify the state's economy. We are hiring more than 100 new team members each month for our Quicken Loans and Rock Financial locations throughout southeast Michigan."
A University of Michigan economic analysis estimates that 1,055 indirect Michigan jobs will be created as a result of increased economic activity associated with the expansion, in addition to the 500 jobs created directly by the company. The project is expected to generate more than $1 billion in personal income for Michigan workers over the life of the tax credit.
The MEDC approved a Single Business Tax credit valued at approximately $6.8 million to win the project.
"It is encouraging to see the kind of growth Quicken Loans has achieved since expanding its Michigan headquarters less than a year ago," MEDC President and CEO Don Jakeway said. "The company's decision to continue to grow here is an indication that our business climate remains an effective catalyst for investment and jobs."
In May 2004, Quicken Loans and Rock Financial announced a major expansion in Troy that will create a total of 4,695 jobs including 1,200 directly by the company. The Michigan Economic Development Corporation assisted the project with an SBT credit valued at more than $26 million. The Troy facility opened in August 2004 and houses a Rock Financial mortgage branch and a Quicken Loans Web/Call center. It is estimated that the Troy expansion will generate more than $4 billion in personal income for Michigan workers over the life of the tax credit.
Founded by Dan Gilbert in 1985, Quicken Loans Inc. consists of Quicken Loans, the nation's largest online lender, Rock Financial, Michigan's largest mortgage company, and Title Source. Headquartered in Livonia, the company has nearly 2,500 team members in the state.
In her 2005 State of the State address, Granholm emphasized the importance of making Michigan a global economic powerhouse in the 21st century. In the past 12 months the Governor and the MEDC announced the creation or retention of more than 80,423 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.
Quicken Loans, Inc. /Rock Financial
(All estimates in 2005 dollars)
|TOTAL JOBS CREATED||1,555|
|NET POSITVE STATE REVENUE IMPACT||$74,878,000|
|Personal Income Generated Over||$1,063,007,000|