Tuesday, June 14, 2011
The Michigan Economic Growth Authority (MEGA) today approved tax incentives for two companies choosing to expand or locate in Michigan, as well as two brownfield redevelopment projects and one significant brownfield amendment. According to the companies’ estimates, the approved projects are expected to generate $121.3 million in new investment, and create or retain a projected 803 direct jobs in communities across the state.
“As today’s actions show, we are employing our economic gardening strategy to help companies grow and enlarge their footprint in Michigan,” said Michael A. Finney, President and CEO of the Michigan Economic Development Corporation. “At the same time, these incentives will help transform blighted, contaminated or functionally obsolete properties into new centers of economic growth and activity.”
The MEGA board approved incentives to win the following projects for Michigan over competing states and countries:
- HP Enterprise Services, LLC – The provider of integrated business solutions across software applications, processes, consulting and support, a subsidiary of the Hewlett-Packard Company, plans to invest up to $4.8 million to add technical employees in Pontiac and create a new supply channel of resources for the company’s U.S. public sector accounts. The company expects the project to create up to 250 direct new jobs, resulting in an estimated state tax credit valued at up to $3.5 million over the next seven years. Michigan was chosen over competing sites due to the high quality workforce and the availability of technical resources.
- Magna Exteriors and Interiors USA, Inc. – The full service supplier of exterior and interior vehicle systems to the global automotive industry, and a wholly owned subsidiary of Magna International, Inc., plans to invest approximately $14.4 million to restructure and upgrade its newly acquired business, Continental Plastics Co., and consolidate the majority of this business to Continental Plastic’s existing locations in China Township and Village of Benzonia, MI. The company will also create jobs at an existing Magna Exteriors and Interiors facility in Howell. The company expects the project to create up to 333 direct new jobs, resulting in a state tax credit valued at $1,495,524 over the next three years. Magna Exteriors and Interiors chose to keep this production and employment in Michigan as opposed to integrating this production into other Magna Exteriors and Interiors facility locations in other states. The Charter Township of China and the City of Howell, MI are supportive of this project and plan to approve a five-year property tax abatement.
- City of Dearborn Heights Brownfield Redevelopment Authority – The City of Dearborn Heights Redevelopment Authority will use state and local tax capture valued at $69,617 to redevelop a vacant contaminated and functionally obsolete gas station on a single parcel of property located at 7205 North Telegraph Road in Dearborn Heights. The project is expected to create up to 35 permanent full-time jobs, with a total capital investment of approximately $1.1 million.
- Wyoming Brownfield Redevelopment Authority – The Wyoming Brownfield Redevelopment Authority will use state and local tax capture valued at $8,452,998 to completely demolish all buildings of the former General Motors Grand Rapids Metal Stamping Plant and prepare the site for redevelopment by new advanced manufacturing operations on approximately 87 acres of property located in Wyoming. The project will redevelop and remediate one of west Michigan’s largest industrial sites and a former GM plant. The total capital investment will be approximately $10 million.
- General Motors LLC – General Motors LLC is amending a 2008 Large Brownfield MEGA board tax credit that involved a 530,000 square feet addition to the engine plant located at the company’s Van Slyke complex. The amended credit, valued at $10,000,000, will support the complex’s truck assembly operation. The new project is expected to add $91 million in private investment and will retain up to 185 jobs.
For the year to date, the MEGA board has approved agreements to assist the expansion of 44 companies that are projected to invest more than $1 billion and create or retain approximately 10,553 direct jobs. It has also approved 10 brownfield redevelopment projects with projected new investment of more than $557 million.
The Michigan Economic Growth Authority (MEGA) may, under statute, provide a refundable tax credit against the Michigan Business Tax (MBT) to companies expanding or relocating their operations in Michigan. Tax credit agreements, awarded on the basis of the company’s strength of project, program guidelines and MEGA board approval, are earned over time by a company’s performance in meeting specified investment and hiring requirements.
The MEGA board is also empowered under statute to award Brownfield Redevelopment tax credits to support new business expansion projects on property that is contaminated, blighted or functionally obsolete.
The Michigan Economic Development Corporation, a public-private 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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