Tuesday, October 19, 2004
Paul Krepps, MEDC
State Assistance Backs Company Expansions, Brownfield Revitalization
Governor Jennifer M. Granholm today announced six major economic development projects that are expected to create 1,224 Michigan jobs and more than $79 million in private investment as a result of assistance offered by the Michigan Economic Development Corporation (MEDC). The projects include three company expansions and three brownfield redevelopments.
"These projects demonstrate once again that we are attracting new investments and jobs to Michigan," Granholm said. "Companies and developers are acknowledging Michigan's business climate as one of the best in the nation."
The projects announced today are expected to create a total of 1,224 jobs, including 804 directly by the companies and redevelopments. According to economic analyses performed by the University of Michigan, an additional 420 indirect jobs are expected to result from increased economic activity associated with the company expansions.
- Grupo Antolin, Marlette: This Spain-based manufacturer of auto interior trim components and systems will invest $8.8 million to expand its existing manufacturing facility in Marlette. A Single Business Tax (SBT) credit valued at more than $1 million convinced the company to choose Michigan over a competing site in Canada. The expansion will create 310 new jobs, including 120 manufacturing jobs directly by the company.
- E.A.B. Fabrication, Quincy: An SBT credit valued at $331,000 helped convince the auto supplier to expand its operations and build a new facility in Quincy rather than at a competing site in Indiana. The expansion is expected to generate $800,000 in private investment and create 137 new jobs, including 75  directly by the company. In addition to the SBT credit, the MEDC also offered E.A.B. an Economic Development Job Training grant worth up to $12,500 to train 25 new workers.
- Musashi Auto Parts-Michigan Inc., Battle Creek: This Japan-based auto supplier will expand its operations in Battle Creek over a competing site in South Carolina due to an SBT credit valued at more than $1.4 million. The expansion is expected to generate more than $26 million in private investment and 346 new jobs, including 178 manufacturing jobs directly by the company. Musashi Auto Parts-Michigan primarily manufactures automotive transmission gears, cam shafts and differential assemblies and employs 361 workers in Michigan.
- DLI Properties LLC, Detroit: DLI will use a brownfield  SBT credit worth more than $2.6 million to help redevelop contaminated, underutilized property adjacent to  2000 Brush Street in downtown Detroit. DLI  will build a new building featuring 107,000 square feet of Class A office space. The project is expected to create 132 construction jobs and spur more than $28 million in private investment.
- Martineau Holdings Limited Dividend Housing Association LLC, Grand Rapids: Martineau Holdings plans to invest more than $7.5 million to rehabilitate several properties along the 100 block of  South Division Avenue in the historic Heartside neighborhood. The mixed use facility will include 23 live/work apartment units. Known as Dwelling Place, the development will also include an additional 12,800 square feet of commercial space. Martineau will use state and local tax capture valued at more than $1.6 million and an SBT credit valued at $752,900 to help prepare the site for redevelopment.
- Pinnacle Commerce Center LLC, Redford Township:  Pinnacle will use state and local tax capture valued at more than $1.6 million to help redevelop the 980,000-square-foot former Ford Motor Distribution Center. The developer plans to reconfigure the single-tenant building into a multi-tenant commercial facility to include warehousing and industrial space. The project is expected to create 400 new jobs and spur $8.2 million in private investment. In addition to the tax capture, Pinnacle was recently approved for a brownfield SBT credit through the MEDC valued at $820,000 to help with demolition and site preparation.
"The projects announced today are an indication that we are beginning to overcome economic challenges of the recent past. It's especially noteworthy that all three of the company expansions are auto-related," said MEDC President and CEO Don Jakeway. "Through the use of our broad incentives arsenal, we have created fertile ground for investment that will have a positive effect on Michigan's economy for years to come."
In her 2004 State of the State address, Governor Granholm announced her plan to make Michigan a global economic powerhouse in the 21st century. So far this year, the Governor and the MEDC have announced the creation or retention of approximately 30,794 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.