Wednesday, October 18, 2006
$9 Million in Tax Exempt Bonds Approved for Kent, Ottawa and Wayne County Industrial Expansions
Governor Jennifer M. Granholm and Michigan Economic Development Corporation President and CEO James C. Epolito today announced that $9.3 million has been approved to help finance four industrial expansions through the Private Activity Bond Program.
The bonds, issued by the Michigan Strategic Fund chaired by Epolito, will support the following expansion projects:
- Pioneer Steel Corporationwill use $3.1 million in bond proceeds to acquire land for construction of 40,000 square feet of manufacturing space and acquisition and installation of machinery and equipment at 8700 Byron Commerce Drive, S.W., Byron Township in Kent County. Land and building will be owned by SBS Holdings LLC with the machinery and equipment portion of the project owned by Pioneer Steel. The company provides metal burning and machining services to the automotive, machine tool and tool and die industries and is a level one government supplier.
- Metaltec Steel Abrasive Company/RSW Properties LLCwas approved for $2,735,000 through the bond program to help finance construction of a 23,000-square-foot addition to an existing plant at 41155 Joy Road in Canton Township, Wayne County along with acquisition and installation of machinery and equipment. The building will be owned by RSW Properties and leased to Metaltec, a manufacturer of low carbon, cast steel shot for blasting castings and shoot peening applications, primarily for the auto industry.
- A $2 million bond allocation has been approved to help finance the expansion of John A. Van Den Bosch Company in Zeeland, Ottawa County. The funding will be used to renovate an existing structure and construction of an additional 15,000 square feet of manufacturing space at 509 E. Washington Avenue. The building will be owned by 509 E. Washington Avenue LLC and leased to Van Den Bosch for production and processing of birdseed.
- Packaging Specialties Inc.in Ecorse, Wayne County will use a $1,483,000 bond allocation to acquire and install machinery and equipment at 100 Labadie for production of corrugated containers.
Private activity bonds are issued to finance projects for manufacturers and certain nonprofit corporations. The MSF acts as an intermediary between a borrowing company and lending party to lessen the cost of borrowing because the interest paid to the bond buyer is exempt from federal, state and local taxes.
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 about the MEDC, please visit the Web site at www.michigan.org.
W. Gary Wood, (734) 459-7900
Pioneer Steel contact:(313) 933-9400 x305
David Van Den Bosch, (616) 848-2000
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