©2016 Michigan Economic Development Corporation

Granholm Announces Grid4 Communications to Expand in Troy, Create High-Tech Jobs

Tuesday, September 19, 2006

Michael Shore, MEDC
(517) 335-4590

Telecommunications Company Chooses Michigan for State-of-the-Art Data Center

Governor Jennifer M. Granholm today announced Grid4 Communications Inc. will invest $500,000 to expand its headquarters in Troy, including the installation of a state-of-the-art data center to support new products and services for Michigan businesses. The project will create 48 new jobs, including 33 directly by the company. Assistance offered through the Michigan Economic Development Corporation helped convince the company to choose Michigan instead of competing sites in Florida and Texas.

"We are working every day to bring high-tech companies, and jobs, to Michigan," Granholm said. "Grid4's decision to invest and create these high-paying jobs in Michigan is further evidence that our comprehensive economic plan is beginning to pay dividends."

The MEDC approved a Single Business Tax credit valued at $501,000 over six years to win the company's investment. The city of Troy has proposed a six-year tax abatement valued at $17,485 to support the project.

"This project will be mutually beneficial for both Grid4 and the state," MEDC President and CEO James C. Epolito said. "Michigan's deep pool of talented and educated workers will help the company succeed in a fiercely competitive global economy and in turn Grid4 will help strengthen the state's high-tech infrastructure and entice more high-tech companies to choose Michigan."

An economic analysis conducted by the MEDC estimates that increased economic activity created by the expansion will generate an additional 15 indirect Michigan jobs, in addition to the 33 created directly by the company. The project is expected to generate more than $13 million in personal income for Michigan workers over the life of the tax credit. 

"Michigan represents a unique opportunity for high-tech competitive phone companies like Grid4," Grid4 President and CEO Chris Hopkins said. "This data center build supported by the MEDC is a clear win for both Michigan businesses and residents in the selection of a communications provider and the creation of much-needed high-tech jobs. We want to thank the MEDC, Oakland County and the city of Troy for recognizing the value that high-tech companies like Grid4 bring to the state."

The Grid4 Communications expansion is one of nine economic development projects the Governor announced today. In all, they are expected to create and retain a total of 1,009 Michigan jobs.

Founded in 2001, Grid4 Communications is a Michigan-based, privately held, facilities-based Competitive Local Exchange Carrier. The company delivers a host of retail and wholesale carrier class Next Generation IP Communication services including Voice over IP (VOIP), Hi-Speed Internet, Private Data Networking Services, Unified Communications and Managed Solutions for Business.   

"Grid4 is just the kind of company we envisioned when we created the Emerging Sectors business development strategy," Oakland County Executive L. Brooks Patterson said. "It is a growing technology company whose presence here increases our tax base and enhances our attractiveness as a business location while creating high-paying technical jobs for our residents. I'm thrilled for Troy and for Oakland County."

In her 2006 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 152,000 jobs as a result of targeted assistance provided by the MEDC.

"The city of Troy is very excited to partner with the state of Michigan and Grid4 to help to insure that this outstanding high-tech company is able to expand its facilities, increase the number of employees it has, and remain here in Troy, where so many other high-tech firms have chosen to do business," Troy City Manager Phillip Nelson said. 

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. For more information on the Michigan Economic Development Corporation's initiatives and programs, visit the Web site at www.michigan.org.



Grid4 Communications Inc.
Economic Analysis Summary Estimates
(All estimates in 2006 dollars)








$ 565,000

Revenue Foregone

$ 501,000

Revenue Gain

$ 1,066,000 

Average Weekly Wage

$ 1,276

Personal Income Generated Over Life of the Seven-Year Tax Credit Agreement

$ 13,845,000

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