Friday, July 14, 2006
Michael Shore, MEDC
$5 Million Plant in Bangor Industrial Park Agricultural Renaissance Zone to Create 22 Jobs
Governor Jennifer M. Granholm today announced establishment of a 12-acre Agricultural Processing Renaissance Zone to accommodate construction of a 10 million-gallon biodiesel plant in Bangor.The plant is expected to start production by December 31 of this year. The 10-year tax-free designation for Michigan BioDiesel LLC takes effect January 1, 2007 and will result in capital investment of $5 million over the next 10 years.
The only other biodiesel facility in the state is located in the Upper Peninsula community of Gladstone.
Michigan BioDiesel LLC is a partnership of 50-plus independent investors who raised funds to build a plant for production of fuel from soybean oil. Biodiesel is nontoxic, renewable and biodegradable, virtually odorless and cleaner burning than petroleum. It is the only fuel to have completed the health-effects testing requirements of the 1990 Clean Air Act amendments. The company will produce the biodiesel fuel on site for sale to petroleum distributors for mixing with diesel fuel.
The Bangor city council last January approved a 100 percent tax break in the zone for the first seven years and a tax break on a sliding scale for the three years following. The incentive package includes a new facilities tax abatement for up to 12 years and on personal property for 15 years.
The Agricultural Processing Renaissance Zone program, administered by the Michigan Economic Development Corporation, was established to encourage agricultural processor expansions and attract new processors to the state. Since its inception in 2000, a total of 19 agricultural processing zones have been established representing private investment of more than $300 million in these zones.
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 on MEDC initiatives and programs, visit the Web site at www.michigan.org.
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