Tuesday, September 13, 2005
Michael Shore, MEDC
$5.7 Million Project Will Create 60 New Jobs
"Ensuring that communities have sufficient infrastructure to support business growth is a top economic development priority," Granholm said. "The manufacturing jobs being created by this expansion will have a positive impact on the Corunna community for years to come."
The grant is being made available by the Michigan Economic Development Corporation with funds provided by the federal Community Development Block Grant program.
The city will use the grant to upgrade the water main and other water transmission equipment to support the expansion. The city of Corunna will contribute $125,000 from the city's water fund for the project.
"We are very excited about the growth of new jobs and investment in our community," Mayor Steve Corey said. "I would like to thank the Michigan Economic Development Corporation and the Shiawassee Economic Development Partnership for their work with our dedicated city officials and administration in making this accomplishment possible. We are honored by the decision of Machine Tool & Gear to expand in the city of Corunna."
Machine Tool & Gear, a division of Newcor Inc., manufactures a variety of precision- machined rubber and plastic components for the automotive and agricultural industries. The company employs 227 people in Corunna. Its parent company, Newcor, is based in Royal Oak and employs about 1,000 skilled workers in Indiana, Michigan and Wisconsin.
The Michigan Economic Development Corporation administers the state's Community Development Block Grant funds received from the U.S. Department of Housing and Urban Development. These funds are used to provide grants and loans to eligible counties, cities, villages and townships-typically those with populations less than 50,000-for economic development, community development and housing projects. Larger communities receive block grant funds directly from the federal government.
The MEDC is able to award approximately $50 million in federal CDBG funds each year. There are 1,655 local governments within the state eligible to apply for these funds. Projects are approved contingent upon compliance with state and federal requirements.
"CDBG funding is an excellent tool for helping smaller communities address the cost of maintaining public infrastructure," MEDC President and CEO James Epolito said. "I commend community leaders for pursuing this important funding to help secure a positive future for Corunna."
In her 2005 State of the State address, Granholm emphasized the importance of making Michigan a global economic powerhouse in the 21st century. Since January 2005 the Governor and the MEDC announced the creation or retention of more than 60,000 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.