©2016 Michigan Economic Development Corporation

Michigan Economic Development Corporation Aids Strategic Interactive in Lansing, Michigan Expansion

Wednesday, April 25, 2001

Jennifer Kopp

205 New Jobs for Michigan Workers

205 New Jobs for Michigan Workers

Strategic Interactive, Inc. will expand its operations in Lansing, Michigan, instead of Iowa, thanks to assistance from the Michigan Economic Development Corporation (MEDC).

Strategic Interactive selected Lansing over Des Moines, Iowa, for its new expansion.It is estimated that this expansion will create 205 new jobs, 150 directly by the company, for Michigan workers.

Strategic Interactive’s tremendous growth exemplifies the benefits of transferring technology developed at our universities to successful commercialization efforts,” said Doug Rothwell, president and CEO of the Michigan Economic Development Corporation.“Once again, our Single Business Tax credit has helped keep Michigan-developed technology and a thriving company from leaving the state.”

Strategic Interactive plans to expand into a new 28,400 square foot building currently under construction in Michigan State University’s Innovation and Technology Park. The company will invest $3.8 million in lease costs and $1.85 million in equipment.Operations at the new facility will begin in May 2001.

“The City of Lansing is pleased to host this fast growing company that offers great local IT job opportunities for our best and brightest young people,” said Karl R. Dorshimer, project coordinator, City of Lansing Economic Development Corporation.

, according to an economic analysis, completed through software provided by Regional Economic Models, Inc. (REMI).

A key component of the assistance provided by the MEDC is an incentive package that includes a Single Business Tax credit worth an estimated $1 million over the next seven years.In addition, the package includes an Economic Development Job Training grant of up to $75,000 to train new employees.The MEDC also offered an abatement of the six-mill State Education Tax valued at $82,414 over the next six years.

The City of Lansing is expected to provide an abatement of real and personal property taxes valued at $371,836 over the next six years.

This project will provide more than $7.1 million in revenue to the state over the life of the agreement, resulting in a net positive gain for the state of more than $6 million, after the tax credit.The project is expected to generate more than $88 million in personal income during that time.

“Strategic Interactive is happy to be flourishing in mid-Michigan,” said Keri Dutkiewicz, director of sales and marketing for Strategic Interactive.“Our work with the MEDC has laid solid groundwork for future investment in Lansing, and continued development of the technology market in the state.”

Strategic Interactive is a web-based technology development company focused on the training and performance enhancement market.Strategic Interactive develops human resource management systems and web-based courseware and provides web-based consulting services.The company was founded in 1995 on Michigan State University’s campus and moved to Michigan State’s Research Park in 1998.

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.

Strategic Interactive, Inc.
Economic Analysis
Summary Estimated
(All estimates in 2001 dollars)

TOTAL JOBS CREATED

205

Direct

150

Indirect

55

NET POSITIVE STATE REVENUE IMPACT

$ 6,043,000

Revenue Foregone

$ 1,065,000

Revenue Gain

$ 7,108,000

Personal Income Generated Over Life of the Tax Credit

$88,832,000

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