Tuesday, July 27, 2004
Paul Krepps, MEDC
Precision Millworks Expanding in Tax-Free Ag Renaissance Zone
"Sufficient infrastructure is essential to foster successful economic development," Granholm said. "The payback on this grant will far exceed our initial investment through job creation and increased economic activity in the area."
In her 2004 State of the State address, Governor Granholm announced a focused seven-point plan for economic growth. So far this year, the Governor and the MEDC have announced the creation or retention of approximately 23,598 jobs as a result of targeted assistance provided by the MEDC.
Precision Millworks processes locally harvested timber into high quality products such as architectural molding and flooring. The grant will make it possible for the company to expand into the Hillman Industrial Park, which lies within one of nine state-designated tax-free Agricultural Renaissance Zones set aside to promote the growth of Michigan's agricultural processing industry. The city will contribute an additional $154,871 toward the project.
The Michigan Economic Development Corporation administers the state's Community Development Block Grant funds received from the U.S. Department of Housing and Urban Development. These funds are used to provide grants to eligible counties, cities, villages and townships-typically those with populations less than 50,000-for economic development, community development and housing projects. Larger communities receive block grant funds directly from the federal government.
The MEDC is able to award up to approximately $50 million in federal CDBG funds each year. There are 1,655 local governments within the state eligible to apply for these funds. Projects are approved contingent upon compliance with state and federal requirements.
"Precision Millworks will be an important anchor in Hillman's Agricultural Renaissance Zone," said MEDC President and CEO Don Jakeway. "The incentives we are providing will lead to new, well-paying jobs based on Michigan's outstanding timber resources."
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.