Tuesday, May 17, 2011
The Michigan Economic Growth Authority (MEGA) today approved tax incentives for three companies choosing to expand or locate in Michigan, as well as three brownfield redevelopment projects. According to the companies’ estimates, the approved projects are expected to generate nearly $182 million in new investment, and create a projected 661 direct jobs in communities across the state.
“The MEGA board actions today underscore our strengths across a number of industry sectors from IT to healthcare to automotive and our state’s attractiveness to companies from across the globe,” said Michael A. Finney, President and CEO of the Michigan Economic Development Corporation. “These new investments demonstrate once more Michigan’s tremendous workforce capabilities and the great opportunities we offer for leading edge companies.”
The MEGA board approved incentives to win the following projects for Michigan over competing states and countries:
- Kenersys Americas, LLC – The Germany-based global wind turbine manufacturing company plans to invest $10.2 million in two phases. For the first phase, Kenersys Americas plans to establish its first presence in the western hemisphere with a sales and headquarters operation in Troy. The second phase of the project consists of a manufacturing facility in Michigan on a site to be determined by 2013. The company expects the project to create up to 160 direct new jobs, resulting in a state tax credit valued at $1 million over the next five years. The city of Troy and Automation Alley have teamed up to provide Kenersys with a two year membership to Automation Alley.
- Summit Health, Inc. – The leading provider of nationwide on-site wellness programs, including health screenings, immunizations, coaching, and educational seminars plans to invest $11.4 million to establish its headquarters and research and development center in Novi. The facility will support a clinical reference laboratory, home blood test kit assembly and delivery, data servers, medical record processing, medical claims processing, and educational health and wellness video production. The company expects the project to create up to 252 direct new jobs, resulting in a state tax credit valued at approximately $514,000 over the next three years. Michigan was chosen over competing sites in Indiana, Tennessee and Washington. The city of Novi has paid administrative fees in support of the project. http://www.summithealth.com/
- Tianhai Electric North America, Inc. – The service provider of sales, engineering, purchasing and administrative support for the automotive wire harness systems market, a wholly-owned subsidiary of China Auto Electrics Group Limited, will invest approximately $5.5 million to establish a world headquarters facility to manage global wire harness business for all non-Chinese based OEM platforms as well as relocation of its warehouse and distribution operations from Texas to Orion Township. The company expects the project to result in up to 202 direct new jobs resulting in a state tax credit valued at nearly $300,000 over the next three years. Michigan was chosen over competing sites in Texas, Germany and China. The charter township of Orion is supportive of this project and anticipates the approval of tax abatements for new property related to the project.
- East Lansing Brownfield Redevelopment Authority – The East Lansing Brownfield Redevelopment Authority will use state and local tax capture valued at $1,530,209 to demolish two commercial buildings and construct a single four-story mixed-use development containing a restaurant and two retail spaces on the first floor and 31 residential units on the second through fourth floors. In addition, the project will invest in public infrastructure improvements, including the creation of a public plaza and green space. The project is expected to create up to five permanent full-time and 50 permanent part-time jobs, with a total capital investment of approximately $7.9 million.
- Grand Rapids Brownfield Redevelopment Authority – Local and school tax capture valued at $1,097,299 will support the redevelopment of a currently underutilized city block into a mix of multi-story, mixed-use buildings with apartments, commercial offices, and retail space, associated parking and streetscape improvements, as well as the reconstruction of approximately 1,500 feet of Logan Street. The project is expected to generate $17 million in new investment and create up to 17 permanent full-time jobs.
- General Motors, LLC – A state brownfield tax credit valued at $10 million will support a potential redevelopment and expansion of General Motor’s Cadillac Building in the city of Warren. The proposed site would house a consolidated data center and become the location of existing GM information technology laboratory and information technology centers. The potential employment impact is estimated to be about 25 new jobs based on the current planning scenario. The total capital investment would be approximately $130 million.
For the year to date, the MEGA board has approved agreements to assist the expansion of 42 companies that are projected to invest $940 million and create or retain approximately 9,750 direct jobs. It has also approved eight brownfield redevelopment projects with projected new investment of more than $455 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 website at www.MichiganAdvantage.org.