Tuesday, September 13, 2011
The Michigan Economic Growth Authority (MEGA) today approved tax credits for four brownfield redevelopment projects and a High Technology MEGA tax credit for projects expected to generate $77.3 million in new investment and 275 direct jobs.
“These projects will help transform blighted, contaminated or functionally obsolete properties into a variety of new uses that will add jobs and diversify Michigan's economy,” said Michael A. Finney, President and CEO of the Michigan Economic Development Corporation. “Our economic gardening strategy is helping companies grow and generate new job opportunities.”
The MEGA board today approved incentives for the following Michigan projects:
- Hexagon Metrology, Inc. – Hexagon Metrology manufactures equipment, sensors and software used for measurement and assembly in numerous manufacturing industries, including aircraft, automotive, heavy equipment, defense, medical and energy. The company has stated that the composition and geography of its customer base is diversifying from automotive to other industries, and it is looking to invest approximately $3 million to relocate to an existing facility in the City of Wixom. The company expects the expansion to create up to 75 jobs, resulting in an estimated state tax credit valued at up to $305,928 over the next four years. Michigan was chosen over competing sites in Indiana, Tennessee and Alabama. The City of Wixom is supportive of the project and will consider a property tax abatement. http://www.hexagonmetrology.us/
- Lafayette Place Lofts Project – A state brownfield credit valued at $2,249,084 will support the redevelopment of three vacant, interconnected buildings in the City of Pontiac. The project will include mixed-income residential rental units and commercial and retail space. The developer anticipates a fresh food market and a commercial gym will be located in the commercial space. The project is expected to generate $20.4 million in new investment and create up to 107 permanent full-time jobs. The project will also be designated as an Urban Development Area Project (UDAP).
- 3300 Denton Redevelopment Project – The Hamtramck Brownfield Redevelopment Authority will use local and school tax capture valued at $470,933 to demolish a vacant industrial building and construct a new recycling and waste transfer station in the City of Hamtramck. The project is expected to generate $6 million in new investment and create up to 43 permanent full-time jobs.
- The Union at Dearborn Redevelopment Project – The Dearborn Brownfield Redevelopment Authority will use local and school tax capture valued at $2,340,699 to redevelop vacant commercial office space into a student housing complex and activities center for University of Michigan-Dearborn students in the City of Dearborn. The project is expected to generate $47 million in new investment and create up to 20 permanent full-time jobs.
- Spartan Technology Development Project – The City of East Lansing Brownfield Redevelopment Authority will use local and school tax capture valued at $262,068 to partially demolish and make infrastructure improvements to a former East Lansing Department of Public Works facility in the City of East Lansing. The redeveloped building will be used by Working Bugs, a biotechnology company that uses live organisms in the creation of biochemicals for the chemical, agricultural, food and pharmaceutical industries. The project is expected to generate $975,000 in new investment and create up to 10 permanent full-time jobs.
For the year to date, the MEGA board has approved agreements to assist the expansion of 48 companies that are projected to invest approximately $1.24 billion and create or retain approximately 13,243 direct jobs. It has also approved 18 brownfield redevelopment projects with projected new investment of more than $740.2 million.
The MEGA may, under statute, provide a refundable tax credit against the Michigan Business Tax (MBT) to companies expanding or relocating their operations in Michigan. 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.
Beginning October 1, the $100 million Michigan Business Development and Michigan Community Revitalization Programs will replace the state’s previous MEGA, Brownfield and Historic tax credit programs that were features of the Michigan Business Tax that will be eliminated under business tax restructuring legislation approved and signed into law by Governor Rick Snyder in May.
The Michigan Economic Development Corporation, a public-private partnership serving as the state's marketing arm and lead agency for business, talent and jobs, focuses on helping grow Michigan's economy. For more on the MEDC and its initiatives, visit: MichiganAdvantage.org
# # #