Tuesday, May 18, 2010
Megan Brown, Governor’s Office 517-335-6397
Bridget Beckman, MEDC 517-335-4590 email@example.com
Companies investing $99 million to grow in Michigan
LANSING – Governor Jennifer M. Granholm today announced that the Michigan Economic Development Corporation (MEDC) is helping four companies grow in Michigan and backing a brownfield redevelopment project in downtown Flint. Combined, the five projects are expected to create 910 new jobs (431 direct) and generate $99.4 million in new investment in the state.
“We are working tirelessly to bring new jobs to Michigan, going anywhere and doing anything to show companies that we have the tools and talent to help them grow,” Granholm said. “Today’s company announcements highlight the positive impact of our aggressive economic diversification plan.”
The Michigan Economic Growth Authority (MEGA) board today approved incentives to win the following projects for Michigan over competing states and countries:
- ConAgra Foods Packaged Foods LLC –The manufacturer of many leading brands of packaged foods, including Healthy Choice, Chef Boyardee, Hebrew National, Hunt’s and others, plans to invest $73 million to expand to grow its private-label snack-bar business and increase its manufacturing capacity in Kentwood. The project is expected to create up to 460 new jobs, including 205 directly by the company. The MEDC estimates increased economic activity created by the project will create an additional 255 indirect jobs. Based on the MEDC’s recommendation, the MEGA board today approved a state tax credit valued at $1.1 million over five years to help convince the company to expand in Michigan over a competing site in Minnesota. The city of Kentwood is considering a 12-year abatement valued at up to $3 million in support of the project. http://www.conagrafoodscompany.com
- Grandpapa’s Inc. – The company specializing in manufacturing, baking, packaging, distributing and shipping of a variety of snack foods plans to invest $4.1 million to expand and renovate a 130,000-square-foot facility in Detroit. The project is expected to create up to 269 total jobs, including 125 directly by the company. The MEDC estimates the increased economic activity created by the project is expected to create an additional 144 indirect jobs. Based on the MEDC’s recommendation, the MEGA board today approved a state tax credit valued at $368,358 over five years to encourage the company to expand in Michigan over a competing site in Indiana. The city of Detroit is considering an abatement valued at up to $347,000 to support the project. http://www.grandpapas.net/
- Proto Manufacturing Inc. – The developer of applications for customers in the aerospace, alternative energy, medical device technology, defense, power-generation, nuclear and automotive industries plans to invest $5.2 million to relocate and expand its operations to a new 18,800-square-foot facility in Taylor to include in-house laboratory services. The project is expected to create up to 88 total jobs, including 46 directly by the company. The MEDC estimates the increased economic activity created by the project may create an additional 42 indirect jobs. Based on the MEDC’s recommendation, the MEGA board today approved a state tax credit valued at $586,814 over seven years to encourage the company to expand in Michigan over competing sites in Ohio, South Carolina, Indiana and Tennessee. The city of Taylor is considering a property tax abatement in support of the project.http://www.protoxrd.com/
- TK Holdings Inc. – Takata Corporation’s North American headquarters, TK Holdings Inc., which manufactures automotive safety equipment including seatbelts, airbags, steering wheels, interior trim and textiles, plans to invest $14.6 million to expand in Auburn Hills in order to allow the company to enhance onsite automotive crash simulations. The company is expected to create up to 78 total jobs, including 40 directly by the company. The MEDC estimates the increased economic activity created by the project may create an additional 38 indirect jobs. Based on the MEDC’s recommendation, the MEGA board today approved a state tax credit valued at $766,068 over eight years to convince the company to locate in Michigan over a competing site in Mexico. The city of Auburn Hills is considering an abatement of up to $515,000 in support of the project. http://www.takata.com
- City of Flint– State and local tax capture valued at $227,786 and an additional $287,115 in local-only tax capture will support a brownfield project that will redevelop two vacant, blighted commercial buildings on the north end of downtown. The buildings were recently demolished to accommodate a new single-story 15,000-square-foot LEED certified office complex; infrastructure improvements include new sidewalks, curbs, lighting, catch basins, landscaping and public parking. The development will be leased to the Internal Revenue Service. The project will generate $2.5 million in new capital investment and create up to 15 new jobs.
“Successful collaboration with our local economic development partners enabled us to win these projects over stiff competition from other states and countries,”MEDC President and CEO Greg Main said.
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 2010, nearly 46,500 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 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 atwww.MichiganBusiness.org.. For updates on MEDC programs, events, success stories and more, follow us on Twitter (www.twitter.com/MIAdvantage), become a fan on Facebook (www.Facebook.com), read our blog athttp://blog.michiganadvantage.organd subscribe to the MEDC YouTube channel (www.youtube.com/user/michiganupperhand).
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