©2016 Michigan Economic Development Corporation

MEDC Creates High-Tech Business Blitz in Oakland County

Tuesday, December 19, 2000

Kathy McMahon

Four New Expansions, 934 New Jobs For Michigan Workers

Four New Expansions, 934 New Jobs For Michigan Workers

The Michigan Economic Development Corporation (MEDC) has helped convince four companies, engaged in high-tech activity, locate their new facilities in Oakland County.It is estimated that these new facilities will create 934 new jobs, 578 directly by the companies, for Michigan workers.

“It’s time Michigan receives the respect it deserves as a leader in the technology driven economy, ” said Doug Rothwell, chairman of the Michigan Economic Growth Authority (MEGA) board.“These four new facilities will help open the nation’s eyes to our state’s impressive and rapidly growing high-tech presence.”

A Michigan Economic Development Corporation incentive package helped convince Tower Automotive, Inc. to expand its existing technical center in Oakland County.This project will create 236 jobs, 125 directly by the company.Tower Automotive chose Oakland County over another Midwestern city for the new technical center expansion.The Michigan Economic Growth Authority (MEGA) board today approved a Single Business Tax credit for Tower Automotive valued at $5.3 million during the next 10 years.Tower Automotive produces a broad range of assemblies and modules for vehicle structures and suspension systems for original equipment manufacturers of automobiles and light trucks.

Sequoia NET.com has decided to locate its new computer network and applications development center in Auburn Hills. An MEDC incentive package helped convince the company to consolidate operations in Auburn Hills rather than dispersing the company’s growth into various locations across the U.S. This project will create 311 Michigan jobs, 225 directly by the company.The MEGA board today approved a Single Business Tax credit for Sequoia valued at $1.7 million during the next seven years.Sequoia provides computer network infrastructure services and web-based applications development.

Vastera Solution Services Corporation, a wholly owned subsidiary of Vastera, Inc., has chosen Southfield for their new expansion.An MEDC incentive package helped convince the company to expand in Southfield rather than Longmont, Colorado.This project will create 233 jobs, 150 directly by the company.The MEGA board today approved a high-tech Single BusinessTax credit for Vastera Solution Services Corporation valued at $1.29 million during the next five years.Vastera Solution Services Corporation is a managed services division of Vastera, Inc., a provider of web-based software products and services that facilitate international buying and selling of goods through streamlining and optimizing global trade processes.

MEDC incentive helped persuade Harman Enterprises to expand its research, development and engineering facility in Farmington Hills.This project will create 154 jobs, 78 directly by the company.Harman Enterprises chose Farmington Hills over Franklin, Kentucky for the expansion.MEGA board today approved a high-tech Single Business Tax credit for Harman Enterprises valued at $894,000 during the next 10 years.

“The four projects represented here show that Oakland County is the technology center for the State of Michigan and not only in the automotive industry,” according to Oakland County Executive L. Brooks Patterson.“Oakland County companies are creating the jobs of the future and we are thrilled to have the jobs and investment here in the heart of Automation Alley in Oakland County.”

Oakland County MEGA Projects
(Combined for December 12, 2000)
MEGA Analysis
Summary Estimated
(All estimates in 2000 dollars)

TOTAL JOBS CREATED

934

Direct

578

Indirect

356

NET POSITIVE STATE REVENUE IMPACT

$ 29,370,000

Revenue Foregone

$ 9,294,000

Revenue Gain

$ 38,664,000

Average Wage

$ 1,147.50/week

Personal Income Generated Over Life of MEGA Agreement

$ 483,262,000

Sequoia NET.com, Inc.
MEGA Analysis
Summary Estimated
(All estimates in 2000 dollars)

TOTAL JOBS CREATED

311

Direct

225

Indirect

86

NET POSITIVE STATE REVENUE IMPACT

$ 8,629,000

Revenue Foregone

$ 1,776,000

Revenue Gain

$ 10,405,000

Average Wage

$ 1,115/week

Personal Income Generated Over Life of MEGA Agreement

$ 130,067,000

Tower Automotive, Inc.
MEGA Analysis
Summary Estimated
(All estimates in 2000 dollars)

TOTAL JOBS CREATED

236

Direct

125

Indirect

111

NET POSITIVE STATE REVENUE IMPACT

$ 10,086,000

Revenue Foregone

$ 5,326,000

Revenue Gain

$ 15,412,000

Average Wage

$ 1,343/week

Personal Income Generated Over Life of MEGA Agreement

$ 192,635,000

Vastera Solution Services Corporation
MEGA Analysis
Summary Estimated
(All estimates in 2000 dollars)

TOTAL JOBS CREATED

233

Direct

150

Indirect

83

NET POSITIVE STATE REVENUE IMPACT

$ 3,195,000

Revenue Foregone

$ 1,298,000

Revenue Gain

$ 4,493,000

Average Wage

$ 1,100/week

Personal Income Generated Over Life of MEGA Agreement

$ 56,148,000

Harman Enterprises, Inc.
MEGA Analysis
Summary Estimated
(All estimates in 2000 dollars)

TOTAL JOBS CREATED

154

Direct

78

Indirect

76

NET POSITIVE STATE REVENUE IMPACT

$ 7,460,000

Revenue Foregone

$ 894,000

Revenue Gain

$ 8,354,000

Average Wage

$ 1,032/week

Personal Income Generated Over Life of MEGA Agreement

$ 104,412,000

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