©2016 Michigan Economic Development Corporation

Governor Granholm Announces Over 2,800 New Jobs for Michigan

Tuesday, October 27, 2009

Megan Brown
517.335.6397

LANSING – Governor Jennifer M. Granholm today announced that the Michigan Economic Development Corporation (MEDC) is helping seven companies grow in Michigan and is backing three brownfield redevelopment projects. Combined, the 10 projects are expected to create 2,815 new jobs (1,507 direct and 1,308 indirect), retain 150 jobs, and generate over $254 million in new investment in the state.

The projects include the expansion of an auto supplier, an information technology center in Detroit, a new corporate headquarters in Delta Twp. (Eaton County), and brownfield redevelopments that will transform abandoned and contaminated sites into new centers of economic growth and activity. In addition, previously announced alternative energy projects received key support to move the projects forward.

“Our strategy to diversify and grow Michigan’s economy continues to produce results for Michigan workers,” Granholm said. “The scope of these company expansions and redevelopment projects demonstrates that we have the competitive business climate and high-skilled workforce that companies are looking for as they compete in today’s economy.”

The Michigan Economic Growth Authority (MEGA) board today approved incentives to win the following projects for Michigan over competing states and countries:

  • Ohio Module Manufacturing Co.The manufacturer of complete chassis module for the Jeep Wrangler plans to invest $21.4 million to locate a Michigan facility in Detroit to produce products for Chrysler’s Jefferson plant. The projectwill create 673 new jobs, including 200 directly by the company. The MEDC estimates increased economic activity created by the project will create an additional 473 indirect jobs. Based on the MEDC’s recommendation, the MEGA board today approved a state tax credit valued at $1.8 million over five years to help convince the company to expand in Michigan over a competing site in Ohio. 
  • Strategic Staffing SolutionsThe Detroit-based provider of information-technology consulting, staffing and vendor-management programs plans to invest $7.3 million to open a new information technology center. The projectwill create 802 new jobs, including 437 directly by the company. The MEDC estimates increased economic activity created by the project will create an additional 365 indirect jobs. Based on the MEDC’s recommendation, the MEGA board today approved a state tax credit valued at $3.8 million over five years to help convince the company to expand in Michigan over a competing site in North Carolina. The city of Detroit is considering an abatement to support the project. http://strategicstaff.com/  
  • Auto-Owners Insurance Group – A provider of life, home, car and business insurance plans to invest approximately $105 million to expand its corporate headquarters across from the company’s existing site in Delta Township. It is anticipated that the project will create 1,270 total jobs, including 800 directly by the company. The MEDC estimates the increased economic activity created by the project will create an additional 470 indirect jobs. Based on the MEDC’s recommendation, the MEGA board today approved a state tax credit valued at $23.1 million over 10 years to encourage the company to expand in Michigan over competing sites in other states in the region. Delta Township is considering an abatement to support the project. Construction of the project is expected to begin after 2012. http://www.auto-owners.com/.
  • Williams International Co. The manufacturer of small gas turbine engines used in military, industrial and commercial aircraft applications plans to invest $12 million to renovate and upgrade its facility in Commerce Township. The projectwill retain 150 jobs, including 72 directly by the company. The MEDC estimates increased economic activity created by the project will retain an additional 78 indirect jobs. Based on the MEDC’s recommendation, the MEGA board today approved a state tax credit valued at $1.4 million over five years to help convince the company to expand in Michigan over a competing site in Utah. Commerce Township is considering an abatement to support the project. http://www.williams-int.com/  
  • Johnson Controls-Saft Advanced Power Solutions LLC (JCS) –The Holland-based manufacturer of advanced batteries has been approved for an Anchor Jobs incentive. Under this designation, a company that attracts or influences a supplier or customer to locate or expand in Michigan can qualify for tax credits. The company was also approved for a Plug-In and all-electric traction battery pack credit valued at up to $20 million over three years to support the manufacture of battery packs using lithium-ion technology. Last April, the MEGA board approved a battery cell manufacturing MBT credit valued at up to $100 million over four years and a high-tech MEGA credit over 15 years for the construction of an advanced-battery manufacturing facility. In total, JCS will invest approximately $220 million and create up to 1,096 new jobs, including over 2,000 indirect jobs. http://www.johnsoncontrols.com/publish/us/en.html
  • Clairvoyant Energy Solar Panel Manufacturing Inc.The company plans to invest $856 million (over four phases)at the former Ford Wixom Assembly Plant to manufacture solar panels. The project is expected to create over 750 direct jobs over the next five years in addition to nearly 4,600 indirect jobs. The company was approved for a photovoltaic MBT credit earlier this month. Based on the MEDC’s recommendation, the MEGA board today approved a state tax credit valued at $31.2 million over 15 years to help convince the company to expand in Michigan over competing sites in other states.  http://www.clairvoyant-energy.com 
  • Xtreme Power Inc.The Texas-based clean-tech company plans to locate in the renewable energy park at the former Ford Assembly Plant in Wixom. The company plans tocreate 7,211 new jobs, including 2,500 directly by the company. The MEDC estimates increased economic activity created by the project will create an additional 4,700 indirect jobs. The company was approved for a battery cell manufacturing MBT credit earlier this month. Based on the MEDC’s recommendation, the MEGA board today approved a state tax credit valued at $106 million over 20 years to help convince the company to expand in Michigan over competing sites in other states.  http://www.xtremepowersolutions.com 
  • Buena VistaCharter Township – State and local tax capture valued at $1.7 million will help prepare the former Fort Saginaw Mall, which has been closed since the 1990s, for new development. To prepare the site, blighted structures will be demolished. The project will generate $9 million in new capital investment.
  • City of Mount Clemens– State and local tax capture valued at $189,600 will support a historic-preservationproject consisting of a complete renovation of a former fire station building located downtown. Renovations will include extensive interior demolition; lead and asbestos abatement; upgraded electrical, plumbing and HVAC; and new light fixtures. The project will generate $820,000 in new capital investment and is expected to create up to 10 new jobs.
  • City of Parchment– State and local tax capture valued at $49.6 million will redevelop the 93-acre Crown Vantage paper manufacturing facility. The overall project will include revitalizing a heavily contaminated site. Upon completion, development will include 30,000-square-foot office building with parking, attached and detached residential units, and various parks and trails. The project will generate $100 million in new capital investment and is expected to create up to 60 new jobs.

The jobs and investment numbers for Johnson Controls-Saft Advanced Power Solutions LLC, Clairvoyant Energy Solar Panel Manufacturing Inc., and Xtreme Power Inc. have previously been announced and are not included in today’s jobs and investment totals.

“The job-creating projects announced today are the direct result of collaboration with our regional economic development partners as well as our innovative economic development incentives,” MEDC President and CEO Greg Main said. “Michigan continues to be a place for companies to invest and grow despite tough national and international competition.”

Prior to today’s MEGA board meeting, Governor Granholm signed recently passed legislation that increases the number of credits that can be awarded this year.  

The Michigan Economic Growth Authority (MEGA), the state’s response to interstate competition for company expansions and relocations, may provide a refundable tax credit against the Michigan Business Tax (MBT) to companies expanding or relocating their operations in Michigan. Since January 2009, more than 81,000 new and retained jobs have been announced as a result of the MEGA program.

Michigan brownfield programs provide incentives to invest in property that has been used for industrial, commercial or residential purposes and to keep that property in productive use or return it to a productive use. Brownfield incentives can be used for functionally obsolete, blighted, or contaminated property. 

The Michigan Economic Development Corporation (MEDC), 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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