Tuesday, April 19, 2005
Michael Shore, MEDC
Community Redevelopment Projects Also Receive State Assistance
Governor Jennifer M. Granholm today announced three company expansions and two brownfield redevelopment projects that are expected to create and retain more than 4,111 jobs and generate more than $336 million in private investment, all as a result of assistance offered by the Michigan Economic Development Corporation (MEDC).
"Michigan is winning the battle for new jobs and investment," Granholm said. "Our quality workforce and economic development incentives have created a business climate that makes Michigan a smart bet for companies looking to invest and create jobs."
The five projects announced today are expected to create and retain 2,517 jobs directly with an additional 1,594 indirect jobs resulting from increased economic activity associated with the company expansions and redevelopments, according to an economic analysis provided by the University of Michigan.
Global communications industry leader American Communications Network Inc. (ACN) plans to invest approximately $32 million to expand its headquarters operations to a new facility in Farmington Hills instead of at a competing site out of state. The project will create 848 new jobs, including 575 directly by the company over the next 10 years. A Single Business Tax credit valued at more than $6.3 million helped convince the company to grow in Michigan. The city of Farmington Hills Economic Development Corporation approved a grant valued at more than $16,000 to provide software training for the new employees.
Johnson Controls will invest $118 million to retool its operations in Battle Creek and Holland instead of moving production to competing locations in Ohio and Mexico. The investment will retain over 1,754 Michigan jobs, including 747 directly by the company. Tax credits valued at more than $17.4 million helped win the project. The city of Battle Creek and Holland Township have also proposed tax abatements valued at $5.4 million and $4.8 million respectively.
X-Rite Inc. plans to invest approximately $44.5 million to expand in Kentwood over a competing site in another state. The project is expected to create 627 jobs, including 313 directly by the Grandville-based company. An SBT credit valued at more than $10.6 million helped convince X-Rite, a leading manufacturer of color measuring instruments and software, to stay and grow in Michigan. The city of Kentwood has also approved a tax abatement valued at approximately $2.3 million to support the project.
Strathmore Development Company, through affiliate Lowertown Development Group, LLC will use a tax credit valued at $4.5 million to revitalize an underutilized and environmentally contaminated 6.4-acre site in Ann Arbor's historic Lower Town. The new development, to be known as Broadway Village at Lower Town, will house a mix of commercial and residential space including 145 apartments, medical offices, pubs and restaurants. It will also include a hotel, athletic club and a 640-space parking structure. Existing buildings on the property will be demolished to make way for the new development. Lowertown will invest $92.2 million in the project, which is expected to create more than 582 new jobs.
Kennedy Square, LLC (also known as Redico) will invest $50 million in the first new high-rise, multi-tenant office building in downtown Detroit in several years. A tax credit valued at $4 million will facilitate the construction of a new 10-story office building in Kennedy Square to replace an underutilized underground parking garage. It will provide office space to attract and retain new tenants in the city and include pedestrian-level retail and commercial space. Located near the Compuware Building, the new development is expected to create 300 new jobs, and will house a total of 1,300 workers.
"Michigan's unequaled arsenal of economic development tools, a strong workforce and community collaboration made these projects happen," MEDC President and CEO Don Jakeway said. "Without business incentives like SBT credits, Michigan would see its communities decline and thousands of jobs go to other states."
In her 2005 State of the State address, Granholm emphasized the importance of making Michigan a global economic powerhouse in the 21st century. Since January 2005 the Governor and the MEDC have announced the creation or retention of more than 35,697 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.