Tuesday, October 02, 2007
$6.5 Million in Tax Exempt Bonds Approved for Macomb County Manufacturer
James C. Epolito, president and CEO of the Michigan Economic Development Corporation, announced today that a $6.5 million allocation has been approved through the use of the Private Activity Bond program to help finance the expansion of BMT Aerospace USA Inc. in Fraser.
The bonds, issued by the Michigan Strategic Fund chaired by Epolito, will be used to finance acquisition of a 56,638-square-foot existing manufacturing plant, acquisition and installation of machinery and equipment and renovation of the facility at 18559 Malyn Road. The project will be owned and operated by the company for the manufacture of gears and gearbox assemblies, primarily for the aerospace industry.
“Supporting companies with the resources needed to add capacity and remain competitive is an essential element of our strategy for assuring the continued vitality of the state’s manufacturing sector,” Epolito said.
Private Activity Bonds are issued to finance projects for manufacturers and certain non-profit 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, please visit the Web site atwww.MichiganBusiness.org.