©2016 Michigan Economic Development Corporation

Michigan Economic Development Corporation Announces the Expansion of CTS Management, LLC in Kalamazoo

Tuesday, March 05, 2002

Jennifer Kopp

205 New Jobs for Michigan Workers

The Michigan Economic Development Corporation (MEDC) announced today that CTS Management, LLC of Washington has decided to locate its new midwest operations facility in Kalamazoo.

It is estimated that the new facility will create 205 new jobs, 191 directly by the company.The project will also provide more than $7.1 million in revenue to the state.Without the assistance offered by the MEDC and the local community, this project would likely have located in Elkhart, Indiana.

“CTS Management’s decision to locate in Kalamazoo is great news for the community,” said Doug Rothwell, president and CEO of the MEDC.“The new job creation will help to ensure the city’s future economic success.”

CTS Management is a Washington-based diagnostic testing laboratory specializing in drug testing.The company is planning to build a 40,000 square foot, state of the art laboratory in Kalamazoo.In addition to the laboratory facility, CTS Management will locate an administrative office in downtown Kalamazoo.The total company investment for the project is approximately $8.3 million.

“We are extremely grateful for the warm welcome provided by the state of Michigan and Southwest Michigan First,“ said Rick Branchflower, president and CEO of CTS.“Each member of my management team who has visited Kalamazoo has returned to Tacoma singing praises of the business community.With the local and state assistance, we look forward to working together to create innovative services while providing meaningful employment for many in healthcare and information technology related positions.”

A key component of the assistance provided by the MEDC is a Single Business Tax Credit worth up to $1.1 million over the next 10 years.

The City of Kalamazoo also has proposed a 50 percent tax abatement of the company’s real property improvements for 12 years and new personal property for six years.The estimated value of this local abatement is $1.1 million.

In addition, Southwest Michigan First will provide a forgivable loan in the amount of $150,000 and a grant of up to $25,000 for facility costs at a temporary location and relocation costs.CTS will operate at the Southwest Michigan Innovation Center at McCracken Hall on the campus of Western Michigan University while the site is being prepared for their permanent facility in Kalamazoo.

Other community partners that contributed to the success of the project included: Bronson Healthcare Group and National City Bank.Bronson contributed scientific collaboration and infrastructure support while National City provided financial assistance.

“Having an established company join the three other start-ups at the Innovation Center further affirms the value in what the Kalamazoo community has to offer,” said Barry Broome, executive director and CEO of Southwest Michigan First.“The economic impact is significant.The high-paying jobs created by CTS have the potential to retain science and technology-related university graduates as well as industry professionals.”

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.

CTS Management, LLC
Economic Analysis
Summary Estimated
(All estimates in 2002 dollars)

Revenue Foregone$1,123,000
Revenue Gain$7,138,000
Average Wage$494/week

Personal Income Generated Over

Life of the Tax Credit Agreement$89,223,000