Tuesday, September 22, 2009
Megan Brown, (517) 335-6397
Bridget Beckman, MEDC (517) 335-4590 email@example.com
Companies investing more than $70 million to grow in state
The projects include a new facility for a start-up manufacturer of wind turbine components, new North American headquarters for an OEM and an automotive insurance company, and a brownfield redevelopment in Monroe that will transform an abandoned and contaminated site into a new center of economic growth and activity.
“The thousands of jobs and millions of dollars of investment planned for Michigan over the next several years are a testament to the success of the most aggressive strategy of any state in the country to diversify and grow Michigan’s economy,” Granholm said.
The Michigan Economic Growth Authority (MEGA) board today approved state tax credits to win the following projects for Michigan over competing states and countries:
- Hummer – The automaker plans to invest $9.4 million over five years in a new global headquarters located in Southeast Michigan for global design, engineering, product planning, purchasing, sales, service, marketing and financing. The project will create 941 new jobs, including 300 directly by the company. The MEDC estimates increased economic activity created by the project will create an additional 641 indirect jobs. Based on the MEDC’s recommendation, the MEGA board today approved a state tax credit valued at $20.6 million over 10 years to help convince the company to expand in Michigan over competing sites in South Carolina and Tennessee. The state tax credit is contingent upon the closing of the company’s sale by General Motors.
- Systems In Motion-- The venture-backed IT services company is building its new "Inshore" IT Services facility in Pittsfield Township. Combining the best practices of global service delivery, with training and development of the local labor force, Systems In Motion plans to create the next-generation technology hub in its Michigan development center. Services delivered include design, development, implementation, testing and support for new technology products, applications and IT Infrastructure. The company plans to invest $15.7 million to establish the Inshore service center. The project will create 1,901 total jobs, including 1,085 directly by the company. The MEDC estimates the increased economic activity created by the project will create an additional 816 indirect jobs. Based on the MEDC’s recommendation, the MEGA board today approved a state tax credit valued at $7.4 million over seven years to encourage the company to expand in Michigan over a competing site in Texas. Pittsfield Township has committed to an abatement in support of the project.
- Bay Area Family YMCA – The 123-year-old YMCA plans to invest $21.3 million to replace an outdated facility in Bay City with a 96,000-square-foot, LEED-certified state-of-the-art facility located downtown, across the street from City Hall. The project will create 17 total jobs. Based on the MEDC’s recommendation, the MEGA board today approved a state tax credit valued at $2.3 million to support the project. Bay City is will provide infrastructure improvements, including upgrades to water lines, storm sewers and electrical lines, to support the project.
- City of Monroe – State and local tax capture valued at $193,233 will support the transformation of functionally obsolete property on the Monroe/Main Street corridor, into a new commercial development which will include a 10,000-square-foot medical office building. The project will generate $2.2 million in new capital investment and is expected to create up to 10 new permanent jobs.
- City of Monroe – VenTower Industries – State and local tax capture valued at $5.8 million will support the construction of a 103,000-square-foot facility to manufacture steel support towers for wind turbine electrical generators as part of the emerging alternative energy industry. VenTower is a start-up industry and plans to purchase 38 acres from the Port of Monroe as part of the project. The project will redevelop a portion of a former industrial waste landfill and add significant public infrastructure to assist the Port of Monroe in improving rail and Great Lakes shipping. The project will also greatly reduce the need for wind turbine components imported from Europe and Asia. The project will generate $22 million in new capital investment and is expected to create up to 150 new jobs.
“The job-creating projects announced today are the direct result of collaboration with our regional economic development partners, as well as our innovative economic development incentives,” MEDC President and CEO Greg Main said. “Michigan continues to be an attractive place for companies to invest in and grow despite very tough national and international competition.”
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 2009, more than 73,888 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 a 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 at www.MichiganBusiness.org.
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