©2016 Michigan Economic Development Corporation

Governor Announces Over 7,000 New Jobs Created, 14,585 Jobs Retained

Tuesday, September 23, 2008

Bridget Beckman, MEDC
(517) 335-4590 beckmanb1@michigan.org

Companies investing more than $1 billion to grow in state

LANSING – Governor Jennifer M. Granholm today announced that the Michigan Economic Development Corporation (MEDC) is helping 17 companies grow in Michigan and is backing a downtown brownfield redevelopment project in Hastings. Combined, the projects are expected to create and retain 21,602 jobs and generate over $1.05 billion in new investment in the state. 

“Our aggressive economic strategy is attracting new job-creating investments from growing national and international companies,” Granholm said. “Our competitive business climate and outstanding workforce are attracting the kinds of companies that are helping to diversify our economy, and we will continue to go anywhere and do anything to bring new jobs like these to Michigan.”

The 18 projects announced today are:

Consolidated Biscuit Company  Ohio-based Consolidated Biscuit Company (CBC) will invest $12 million in a new manufacturing center in Tecumseh. The expansion is expected to create 1,058 new Michigan jobs, including 500 directly by the company. Based on the MEDC’s recommendation, the Michigan Economic Growth Authority (MEGA) board today approved a state tax credit valued at $5.4 million over 10 years to help convince the company to expand in Michigan over a competing site in Kentucky. In addition, the MEDC will make available up to $125,000 in job training funds through the Economic Development Job Training program. To support the project, the city of Tecumseh is considering a 12-year tax abatement valued at $867,000. The company is taking over a former Tecumseh Products facility. The planned manufacturing facility will be CBC’s first operation in Michigan.

  • General Motors – State incentives have been approved to encourage General Motors to develop and produce the new Chevrolet Volt in Michigan along with additional advanced energy and conventional fuel vehicles and components. Pending company approval, GM is considering expanding facilities in Detroit-Hamtramck, Pontiac, Bay City and Warren and building a new facility in Flint. The project is expected to retain a total of 14,380 jobs in the state and 3,723 direct jobs at GM. The proposed $838 million project includes upgrades to the Detroit-Hamtramck assembly plant, Pontiac Metal Center, Bay City Components Plant and the GM Technical Center in Warren. The project would also include the construction of a new facility on a brownfield site in Flint. The MEDC is working closely with the company as it weighs Michigan against competing locations in North America. Based on the MEDC’s recommendation, the MEGA board today approved a state tax credit worth approximately $122.5 million over 15 years and a brownfield tax credit valued at $10 million to win the company’s investment. The cities of Flint, Pontiac and Bay City have approved tax abatements to support the project.
  • Accretive Health LLC – Chicago-based Accretive Health LLC, a leading provider of revenue-cycle management services to hospitals, plans to expand operations in Detroit and Kalamazoo. The aggressive expansion is expected to create 650 jobs over the next five to seven years. Based on the MEDC’s recommendation, the MEGA board today approved a state tax credit valued at $5.4 million over seven years to win the company’s expansion. To support the project, the city of Detroit is considering a three-year personal property tax abatement. In addition to tax abatements, the city of Detroit has offered the company parking incentives to accommodate their growing workforce needs. The city of Kalamazoo has proposed a three-year abatement worth $14,000 and will work with the company to identify additional downtown parking. An economic analysis conducted by the MEDC estimates that increased economic activity created by the expansion will create 492 indirect Michigan jobs.
  • Bissell, Inc. – Bissell, Inc. is one of the world’s largest and oldest suppliers and manufacturers of floor-care products, including sweepers, vacuums, deep-cleaning machines, and cleaning formulas. Bissell plans to invest approximately $9 million in an expansion and the opening of an innovation center at its facility in Walker. The innovation center would be a centralized location for research and development related to Bissell’s new and existing product lines. The project is expected to create 214 jobs, including 106 directly by the company. An economic analysis conducted by the MEDC estimates the project will generate an additional 108 indirect jobs. Based on the MEDC’s recommendation, the MEGA board today approved a state tax credit valued at $2.4 million to help convince the company to invest in Michigan over a competing site in China. The city of Walker plans to support this project with a tax abatement and a 12-year industrial facilities tax abatement.
  • Leggett & Platt Inc., dba Genesis Seating, Inc. – The furniture manufacturer plans to invest $9.1 million to expand operations in west Michigan. Genesis Seating will invest $3 million to relocate from Cascade Twp. and expand in Kentwood. The project is expected to create 131 new jobs. Davidson Plyforms, which currently shares the facility with Genesis in Cascade Twp., will invest $5.6 million to utilize the new space being vacated and create 45 new jobs. A third component of the project includes a $620,000 expansion by Grand River Polishing (recently purchased by Leggett & Platt) at its Spring Lake Twp. facility. The Grand River Polishing project is expected to create 57 new jobs. Combined, the projects are expected to create 439 new jobs, including 233 directly by the company. An economic analysis conducted by the MEDC estimates an additional 206 indirect jobs will be generated. Based on the MEDC’s recommendation, the MEGA board today approved a state tax credit valued at $2 million over 10 years to help secure the expansions in Michigan over competing sites in Indiana. The city of Kentwood, Cascade Township and Spring Lake Township plan to support the project with property tax abatements.
  • Sequenom – The San Diego-based company is a genetics and molecular diagnostic company providing genetic analysis products and services as well as diagnostic tests addressing prenatal genetic disorders, oncology, and infectious diseases. The company is creating a second research location by purchasing lab space in Grand Rapids. The facility will be used to further develop its non-invasive prenatal tests, which will provide new abilities to test for genetic disorders as early as the first trimester of pregnancy. With additional growth, the company plans to build its own lab in Grand Rapids in the next few years. Sequenom was also considering purchasing labs in Tennessee and Indiana. The Right Place worked with the company as well as the city of Grand Rapids and the MEDC to develop an incentive package valued at $20 million over 12 years. The project includes a capital investment of approximately $20.25 million over five years and the creation of up to 523 jobs by 2013. An economic analysis conducted by the MEDC estimates the project will create 618 spin-off jobs.
  • Premier Tool & Die Cast Corporation – The company plans to locate a new, $4.2 million facility in Dowagiac. The project is expected to create 62 jobs at the company and an additional 46 spin-off jobs. Based on the MEDC’s recommendation, the MEGA approved a state tax credit valued at $553,000 over seven years to win the company’s investment over a competing site in New York. The city of Dowagiac is supporting the project by extending additional power capacity and anticipates approval of a tax abatement.   
  • A2 Media Corporation – A2 Media Corporation is an interactive agency developing enterprise-level software that lets marketing and communications professionals in the auto, biotech and financial services sector manage their digital activities. The company will invest approximately $2.7 million in relocation and expansion of its current Ann Arbor site to a larger facility in the city. The project is expected to create 128 new jobs, including 63 directly by the company. An economic analysis conducted by the MEDC estimates that the project will generate an additional 65 indirect jobs. Based on the MEDC’s recommendation, the MEGA board today approved a state tax credit valued at $1.26 million over ten years to win the project over competing sites in India or Ireland. The city of Ann Arbor will help cover administrative costs to support the project.
  • Barracuda Networks, Inc. – Barracuda Networks, a leader in e-mail and Web security applications, plans to expand its research and development center in Ann Arbor. The project is expected to create 351 new jobs, including 185 directly by the company. An economic analysis conducted by the MEDC estimates the project will create an additional 166 indirect jobs. Based on the MEDC’s recommendation, the MEGA board today approved a state tax credit valued at $1.4 million over eight years to win the project over a competing international site. The city of Ann Arbor will help cover administrative costs to support the project.
  • Faurecia USA Holdings Inc.  Faurecia currently has 1,868 employees in nine locations around Michigan: technical centers in Auburn Hills and Troy, a research center in Holland, and manufacturing plants in Auburn Hills, Fraser, Shelby Township, Sterling Heights, and Lansing. The company plans to invest $23.3 million to relocate and expand its Interiors Division tech center and North American headquarters, as well as increase staffing at its Troy location. The combined expansions will create up to 219 direct new engineering, technical, professional, managerial and clerical jobs, plus 192 spin-off jobs. Based on the MEDC’s recommendation, the MEGA board approved a state tax credit valued at $2.7 million over seven years to win the company’s investment over a competing site in Ohio. The cities of Auburn Hills and Troy support the project and anticipate approval of state and local property tax abatements.
  • Mando American Corporation  The manufacturer of brake, steering and suspension systems for the automobile and truck industries in North America is planning to move their current Plymouth operations to Novi rather than out of state. Recent work by the state, county and business organization have allowed Mando America to propose moving the current research and development and test activities to a center in Novi. If approved by Mando’s senior executives in Korea, the proposed Michigan move would happen some time after the end of this year. The state's proposal will create 101 new direct jobs for Mando and the local community over the span of 5 to 10 years. The city of Novi has approved $20,000 for public infrastructure improvements to support the project.
  • Plexus Systems Inc. – The Auburn Hills-based software company is expanding its operations to support current and future development of its Web-based solution, Plexus Online. Plexus Online provides discrete manufacturers with all of the tools and information they need to maximize their operational efficiency and to achieve new levels of revenue growth and profitability. Plexus currently has 106 employees in Michigan. The company plans to invest$3.9 million at two Auburn Hills locations. The project is expected to create 298 new direct jobs and 488 spin-off jobs. Based on the MEDC’s recommendation, the MEGA board approved a state tax credit valued at $7.98 million over ten years to win the project over competing sites in North Carolina, Washington and Arizona. The city of Auburn Hills will consider a property tax abatement to support the project.
  • Hino Motors Manufacturing (HMM) USA Inc. – HMM is a wholly-owned subsidiary of Japan-based Hino Motors Ltd. HMM is considering consolidating and expanding its administrative, research and development and quality assurance functions at its facility in Farmington Hills. The proposed project will result in 34 new jobs at the company and an additional 31 spin-off jobs. Total capital investment is expected to be $3 million. Based on the MEDC’s recommendation, the MEGA board today approved a state tax credit valued at $503,000 over seven years to win the company’s investment over competing sites in West Virginia, Arkansas and California. Oakland County is considering providing job training assistance to support the project. Governor Granholm met with Hino officials in Japan last week during her investment mission to the country to encourage the company to move forward with its expansion plans in Michigan.    
  • AT&T Internet Services, Inc. – AT&T Internet Services, a subsidiary of AT&T, Inc., plans to build a high-tech call center that will take in-bound calls for high speed internet (DSL) customers in need of assistance with their internet service. The call center will be located in an existing facility in the city of Detroit and is expected to create 300 jobs. An economic analysis conducted by the MEDC estimates the project will generate an additional 110 indirect jobs. Based on the MEDC’s recommendation, the MEGA board today approved a state tax credit valued at more than $1 million over five years to help convince the company to invest in Michigan over competing sites in other states. The city of Detroit plans to support this project with training assistance from the Detroit Workforce Development Department.
  • NYX, Inc. – The minority-owned market leader in automotive interior and under-hood products and five-time General Motors Supplier of the Year plans to open a new corporate office and technology center, along with a manufacturing operation, in Livonia. The project is expected to create 390 new jobs, including 168 directly by the company. An economic analysis conducted by the MEDC estimates the project will generate an additional 222 indirect jobs. Based on the MEDC’s recommendation, the MEGA board today approved a state tax credit valued at $1.67 million over six years to help convince the company to invest in Michigan over competing sites in Indiana and Tennessee. The city of Livonia plans to support the project with a 12-year tax abatement.
  • Post It Stables – Post It Stables is investing approximately $72 million over three phases to develop the Pinnacle Race Course in the Pinnacle Aeropark area, south of the Detroit Metropolitan Airport in Huron Township. The project consists of the development of 240 acres of a 320-acre site owned by Wayne County at the corner of Sibley and Vining roads. The race course will feature a one-mile track, grandstands, picnic area, clubhouse, horse barns, and grooms’ quarters and will accommodate as many as 8,000 fans. The project is expected to create 71 jobs directly by Post It Stables and Post It Stables Hospitality LLC. Taking into account additional jobs created by others at the race course, the total employment is estimated to be up to 700 during the race season. Based on the MEDC’s recommendation, the MEGA board today approved a state tax credit valued at $982,000 over 10 years. Pinnacle Race Course is the first project approved for a new tax credit for businesses that are tourist attractions or lodging facilities under legislative changes approved by the Legislature and signed into law by Governor Granholm. In addition, the company has been approved for a state brownfield credit valued at $5.3 million. Wayne County is expected to support the project through the issuing of more than $28 million in public infrastructure bonds and $7 million in revenue bonds for on-site infrastructure.
  • Carbone of America – State assistance will support Carbone of America expand its Ultra Carbon Division in Bay City. The $11.5 million project will add 65 new jobs and retain 126 jobs. The MEGA board today approved more than $3 million in state and local tax capture in addition to a $1.3 million brownfield tax credit to support the project. The project includes demolition and reconstruction of a functionally obsolete portion of the existing Carbone plant and purchase of new manufacturing equipment, including additional furnaces. Also included is reconstruction of a deteriorated section of Harrison Street between 32nd and 38th streets and underground utility improvements to accommodate the expansion.
  • City of Hastings – State and local tax capture valued at $221,125 will support a proposed project by Developer Agree Limited Partnership to transform a site at the intersection of Broadway and State streets in downtown Hastings. The developer will invest $6 million in the project, which will include the demolition of three current buildings and construction of a new 19,250 square-foot building that will result in new commercial space at the gateway to the city’s downtown.   

“Today’s great news is the result of solid teamwork between the state and our local economic development partners throughout Michigan to win these projects against intense competition from other states and countries,” MEDC President and CEO James C. Epolito said.

In her 2008 State of the State address, Granholm emphasized the importance of creating opportunity in the changing world of the 21st century. Since January 2005, the Governor and the MEDC have announced the creation or retention of more than 279,000 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. For more information on the MEDC’s initiatives and programs, visit the Web site at www.MichiganBusiness.org.  

                                                                                               

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