Wednesday, April 18, 2007
$15.8 Million in Tax Exempt Bonds Approved for Three Business Expansions
Governor Jennifer M. Granholm and Michigan Economic Development Corporation President and CEO James C. Epolito announced today that $15.8 million has been approved to help finance plant expansions in Albion, Holland and Sterling Heights through the state's Private Activity Bond Program.
"Investing in new manufacturing capacity will pay off in the creation of new jobs for the local workforce," Epolito said. "The personal income and tax revenue created will strengthen the communities in which these companies are based."
The bonds, issued by the Michigan Strategic Fund chaired by Epolito, will support the following expansion projects:
- Continental Carbonic Products, an Illinois corporation engaged in the manufacture and distribution of dry ice and liquid carbon dioxide, will use a $10 million allocation for construction of a 46,000-square-foot manufacturing facility on land leased by Continental Carbonic Products at 26178 B Drive N. in Albion and for acquisition and installation of machinery and equipment.
- A $3.95 million allocation has been approved to help finance expansion of automotive supplier J. G. Kern Enterprises. The bonds will be used to finance the acquisition and installation of machinery and equipment to be located at 44044 Merrill Road, Sterling Heights. The company manufactures drive train, power train and other precision components for the automotive industry.
- Nuvar Properties LLC will use a $1,875,000 allocation for a 25,000-square-foot addition to a manufacturing plant at 895 E. 40th Street, Holland, in addition to acquisition and installation of machinery and equipment. The project will be owned by Nuvar Properties and leased to Nuvar Inc. for the manufacture and assembly of office furniture.
Private activity bonds are issued to finance projects for manufacturers and certain nonprofit corporations. The MSF acts as an intermediary between a borrowing company and lending party to lessen the cost of borrowing because the interest paid to the bond buyer is exempt from federal, state and local taxes.
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 about the MEDC's Private Activity Bond program, please visit the Web site atwww.michigan.org.
Continental Carbonic Products contact:
J. C. Kern Enterprises contact:
(586) 726-1040 x20
Nuvar Properties contact:
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