Tuesday, March 18, 2008
Companies investing $195 million to grow in state
Governor Jennifer M. Granholm today announced that the Michigan Economic Development Corporation (MEDC) is helping eight companies grow and is backing four brownfield redevelopment projects in communities across Michigan. Combined, the projects are expected to create and retain a total of 6,066 jobs and involve approximately $195 million in new capital investment in the state.
“Our aggressive economic strategy is attracting new job-creating investments from growing companies in every industry, from alternative energy and advanced manufacturing to financial services and food processing,” Granholm said. “As these businesses choose Michigan, they send a message that Michigan is a great place for other companies to do business and create jobs, too.”
The 12 projects announced today:
- North American Bancard Inc.: The Troy-based financial services company will invest $25 million to expand in the city. The expansion is expected to create 1,899 new jobs, including 1,500 directly by the company. Based on the MEDC’s recommendation, the Michigan Economic Growth Authority approveda state tax credit valued at $21.5 million over 12 years to win the project over a competing site in Florida. To support the expansion, Oakland County plans to contribute up to $50,000 in federal training dollars under the Workforce Investment Act and provide additional job recruitment services. Automation Alley, a technology business association driving the growth and image of Southeast Michigan’s economy through a collaborative culture that focuses on workforce and business development initiatives,will provide additional support through a two-year foundation level membership valued at $30,000.
- The Brose Group,the leading manufacturer of mechatronic components and systems for vehicle bodies and interiors has recently announced that it is expanding its North American headquarters in Auburn Hills. In addition to this expansion, they have also announced the groundbreaking on a new facility, Brose Jefferson located in Warren. These decisions follow the governor’s investment mission to Germany last year which included meetings with company leaders at the Brose headquarters in Coburg. In total, Brose will invest some $23 million in order to renovate and equip a manufacturing facility in Warren as well as to expand its headquarters in Auburn Hills. Based on the MEDC’s recommendation, the Michigan Economic Growth Authority approved a state tax credit valued at $7.4 million over seven years which helped persuade the company to choose Michigan over competing states for the new facility. The projects are expected to create a total of approximately 500 positions in both Michigan locations within the next five to seven years extending Brose’s technological footprint in Michigan. An economic analysis conducted by the MEDC estimates the projects will generate up to 1,317 additional spin-off jobs in the state. To support the projects, the city of Warren has approved a 10-year abatement worth $662,000 and the city of Auburn Hills is considering an eight-year abatement worth $457,000.
- Paragon Metals Inc.: the Charlotte, N.C.-based manufacturer and supply chain manager of engineered precision components for U.S. and European auto, truck and original equipment manufacturers plans to invest approximately $15 million to locate a manufacturing operation in Quincy, creating 235 new jobs including 130 directly by the company. Based on the MEDC’s recommendation, the Michigan Economic Growth Authority approved a state tax credit valued at $1.1 million over seven years to help convince the company to choose Michigan for the new facilityover a competing site in South Carolina. To support the project, the Township of Quincy has approved a 12-year abatement worth $470,000.
- ArvinMeritor Inc.: The global supplier of integrated systems, modules and components to the motor vehicle industry, will invest $15.9 million in new equipment at its facility in southwest Detroit to fulfill a multi-year contract with a major automotive manufacturer. The project is expected to create up to 404 new jobs including 119 directly by the company. Based on the MEDC’s recommendation, the Michigan Economic Growth Authority approved a state tax credit valued at $1.1 million over seven years to win the project over a competing site in Ohio. To support the project, the city of Detroit is considering a 10-year abatement worth $3.8 million when combined with savings under the new Michigan Business Tax.The Detroit Economic Growth Corporation partnered with the MEDC in coordinating a proposal and incentive package to help secure the company’s growth in the city.
- Ricardo Inc.: The Eco-Innovation Technology Company and a leading independent provider of technology, product innovation, engineering solutions and strategic consulting to the world's automotive, transport and new energy industries with a skill base representing the state-of-the-art in low emissions and fuel-efficient powertrain technology, will invest more than $2 million to establish a Battery Systems Development Center for hybrid and electric vehicle battery pack development and testing at its facility in Van Buren Township. The project is expected to create 32 new jobs directly by the company. An economic analysis conducted by the MEDC estimates the project will create additional 16 spin-off jobs. Based on the MEDC’s recommendation, the Michigan Economic Growth Authority approved a state tax credit valued at $991,000 over 10 years to win the company’s investment over a competing site in Illinois. To support the project, Van Buren Township will consider an eight year abatement worth approximately $74,200 when combined with savings under the new Michigan Business Tax.
- Sakti3:The high-tech startup company plans to invest more than $1 million to commercialize a manufacturing process in Ann Arbor for the development of high-power batteries that will withstand the rigors of automotive use. The technology for this process stemmed from research performed at the University of Michigan by the company’s CEO, Professor Ann Marie Sastry. The project is expected to create 230 new jobs, including 112 directly by the company. Based on the MEDC’s recommendation, the Michigan Economic Growth Authority approved a state tax credit valued at $2.3 million over 10 years to win the company’s investment. To support the project, Ann Arbor SPARK provided administrative assistance during the MEGA application process.
- MyBuys Inc.:The Redwood City, Calif.-based personalized product recommendation service for online-retailers is planning to invest $5.4 million to establish operations in Ann Arbor. The project is expected to create 606 new jobs, 250 directly by the company.Based on the MEDC’s recommendation, the Michigan Economic Growth Authority approved astate tax credit valued at $3.9 million over 10 years to help tip the scales toward Michigan over a competing site in Austin, Texas. The city of Ann Arbor plans to support the project with a local tax abatement and Ann Arbor SPARK will provide rental assistance to MyBuys valued at more than $4,700.
- Boar’s Head Provisions Co. Inc.: The Sarasota, Fla.-based food processorplans to expand its operations in HollandTownship. The company will invest $25 million to acquire property and new equipment for the expansion. The project is expected to create 208 new jobs at the company and an additional 239 spin-off jobs over the next seven years. Based on the MEDC’s recommendation, the Michigan Economic Growth Authority board approved a state tax credit valued at more than $1.6 million over seven years to help convince the company to invest in Michigan. Holland Township is anticipated to support the project with a local property tax abatement valued at about $748,000 over 12 years.
- Hotel Holdings Monroe LLC:The developerwill use a state brownfield tax credit valued at $3.5 million to demolish a vacant building and build in its place a nine-story, 238-room hotel located at 710, 720 and 748 NW Monroe Ave in Grand Rapids. The 185,000-square-foot structure will include a restaurant, limited retail, meeting room and banquet facilities and parking. Capital investment of $37.2 million will support creation of 150 new jobs, with the project scheduled for completion by summer of 2010.
- Two West Fulton LLC:The developer will use a $3.4-million state brownfield tax credit will support the construction of 66 new apartments, art theater, art gallery and additional retail on a vacant and contaminated site located at 1 South Division in Grand Rapids. The developer will invest $34 million in the project, which is expected to create 38 new jobs.
- State and local tax capture valued at $350,750 will allow Leelanau County Brownfield Redevelopment Authority to demolish the former Leelanau County Complex comprising the Court House, Sheriff’s Department/Jail and two other office buildings to make way for six single and 20 multiple family housing units. Capital investment in the project is estimated at $10.4 million.
- City of Southfield Brownfield Redevelopment Authority:A vacant 115,000-square-foot facility in Southfield owned by Comau Inc. will be assisted by state and local tax capture valued at $264,000. The project will enable Comau to consolidate some 175 engineering, design, program management and manufacturing jobs from other Michigan locations to Southfield instead of being taken to Alabama, Mexico or China, the alternative locations under consideration. The company’s product line consists of various automated assembly tooling products, including welding robots and control systems. Comau plans investment of up to $2 million in the project.
“All of these projects are the result of successful state and local collaboration and teamwork with our economic development partners around the state to bring these projects to Michigan against some very stiff competition,” MEDC President and CEO James C. Epolito said.
In her 2008 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 226,000 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. For more information on the MEDC’s initiatives and programs, visit the Web site at www.MichiganBusiness.org.
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