Quicken Loans, Inc. will expand in Livonia thanks to a Michigan Economic Development Corporation (MEDC) incentive package. The MEDC helped win the project by making a competitive business case, against Virginia, for the company to expand in Michigan with a Single Business Tax credit and job training assistance.
Quicken Loans selected Livonia over Fredericksburg, Virginia, for its customer web center expansion. It is estimated that this expansion will create 928 new jobs, 515 directly by the company, for Michigan workers.
“Intuit Inc., Quicken Loan’s parent company, currently has a presence in both Michigan and Virginia. Without the MEDC incentive package, the company and its hundreds of good paying jobs would have left the state,” said Doug Rothwell, chairman of the Michigan Economic Growth Authority (MEGA) board. “Instead, Quicken Loans will stay in Michigan and double its Michigan employment numbers over the next three years.”
The company plans to make significant investments in the expanded web center facility, located on Victor Parkway in Livonia, including building, computer hardware and equipment costs. The expansion is expected to begin in January 2001.
“The City of Livonia appreciates the leadership provided by MEDC President & CEO Doug Rothwell and the MEGA Board for ensuring that Quicken Loans’ growth takes place in Michigan,” stated Livonia’s Economic Development Director Jeff Bryant. “The competition among states for e-commerce and high-tech jobs is tremendous, so we are thrilled that Quicken will continue to grow in Livonia.”
, according to an economic analysis completed by the University of Michigan.
A key feature of the MEDC incentive package is a MEGA tax credit, approved today by the MEGA board, worth an estimated $6.1 million over the next seven years. The MEGA program, which is administered by the MEDC, is used to promote high quality economic growth, job creation and retention in Michigan.
In addition, the incentive package includes an Economic Development Job Training grant valued at up to $515,000 to train 515 new workers at Quicken Loans.
This project will provide more than $21.3 million in revenue to the state over the life of the agreement, resulting in a net positive gain for the state of more than $15.1 million, after the MEGA credit. The project is expected to generate more than $266 million in personal income during that time.
“Quicken Loans has become the nation's leading online mortgage lender and the largest Silicon Valley presence in Michigan,” said CEO Daniel Gilbert. “This credit will help us continue to expand our operations and at the same time help generate economic growth and new jobs for the state. We are creating hundreds of positions in all areas of the company, including operations, sales and information technology. These are great paying jobs that include Silicon Valley stock options for people right here in Michigan.”
Quicken Loans, a provider of direct-to-consumer home loans on the Internet and through traditional branches, offers mortgages in all 50 states and provides a wide variety of home financing options including conventional, sub-prime, home equity, government and jumbo loans. A wholly owned subsidiary of Intuit Inc., Quicken Loans currently has more than 500 employees.
Quicken Loans, Inc.
(All estimates in 2000 dollars)
TOTAL JOBS CREATED
|NET POSITIVE STATE REVENUE IMPACT|
|Personal Income Generated Over Life of MEGA Agreement|