Monday, July 10, 2006
Tax Exempt Bonds Approved for Auto Suppliers Alliance Interiors and Erwin Quarder to Help Growth
Governor Jennifer M. Granholm and Michigan Economic Development Corporation President and CEO James C. Epolito today announced that through the use of the Private Activity Bond Program, allocations totaling $5.2 million have been approved to help finance two auto-supplier expansions
"By working together, the Michigan Economic Development Corporation and these companies are making a commitment to their employees and the communities in which they have operations," Epolito said. "The new jobs and revenue created by the projects will make for a stronger local economy."
The bonds, issued by the Michigan Strategic Fund chaired by Epolito, will support the following expansion projects:
- Alliance Interiors LLC will use $2,550,000 in bond proceeds to acquire and install machinery and equipment to be located in a vacant manufacturing plant in Delta Charter Township, Eaton County. The machinery will be owned and operated by Alliance Interiors, 4521 West Mount Hope Road, Lansing and used to manufacture interior soft trim products for the automotive industry.
- Erwin Quarder Inc. will use $2,675,000 in bond proceeds to acquire and install machinery and equipment, furnishings and fixtures to be located in a leased manufacturing facility in Cascade Charter Township, Kent County. The project will be owned and operated by Quarder and used to manufacture plastic component parts for the automotive and other industries.
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.
Alliance Interiors contact:
Mr. John Lychos
Erwin Quarder contact:
(616) 575-1600 x224
# # #