©2016 Michigan Economic Development Corporation

Michigan Economic Development Corporation Convinces IPC Communications to Expand in St. Joseph, Michigan

Wednesday, April 25, 2001

Jennifer Kopp

159 New Jobs for Michigan Workers

159 New Jobs for Michigan Workers

IPC Communication Services, Inc. has selected St. Joseph Charter Township for the expansion of its operations currently located in California.The project will create 159 new jobs, 106 directly by the company over the next 36 months, for Michigan workers.

IPC selected St. Joseph Township, over Tennessee, for its expansion because its current St. Joseph Township facility is more closely aligned with the California operation in terms of its product line, allowing better synergies and the leveraging of existing resources at the facility. IPC accredited its good relationship with its current workforce of more than 500 in St. Joseph Charter Township as another reason why St. Joseph Township was chosen for expansion.

“Michigan has proven it can compete with and beat a high-tech powerhouse like California,” said Doug Rothwell, president and CEO of the Michigan Economic Development Corporation.“Our incentive package will help offset some of the costs of transferring business to Michigan, while creating more jobs for Michigan residents.The project is a shining example of what happens when an area works together for the betterment of the entire region.”

The California facility will be downsized and partly folded into operations in St. Joseph Charter Township.IPC will lease additional space in its current facility on Hawthorne Drive in St. Joseph Charter Township.In addition, the company intends to make a significant investment in plant and equipment at all three of its facilities located in southwestern Michigan.

The IPC expansion project reaches across several municipalities, located in southwest Michigan, including St. Joseph Charter Township, Lincoln Charter Township and the City of St. Joseph.St. Joseph Charter Township Supervisor Ron Griffin said, “IPC Communications, by being employee owned, offers a strong sense of community and we are proud to have several operations of IPC located within our boundary.Helping this company to grow enables its employees to grow, which benefits the entire community.”

Supervisor of Lincoln Charter Township Kevin Gillett said, “As a business leader in our community for many years now, we strongly support the growth of high-tech companies like IPC Communications.Each time a company like IPC experiences job growth, there is a direct connection between the enhanced quality of life and improved housing sales in our area.”

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

A component of the assistance provided by the MEDC includes an incentive package with a Single Business Tax credit worth an estimated $920,000 over the next 10 years.The incentive package also includes an Economic Development Job Training grant of up to $53,000 to train new employees.The MEDC also offered an abatement of the six-mill State Education Tax valued at $8,562.

St. Joseph Charter Township is prepared to provide a 50 percent abatement of the personal property tax for 12 years.The estimated value of this local abatement is $100,676.

This project will provide more than $6.9 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 $86.9 million in personal income during that time.

“The long-term relationship our company has had with the local community and the State of Michigan, coupled with the strong workforce we have in the area helped make this decision,” said Ken Kozminski, president of IPC Communications. “Clearly, the level of assistance and support from the state and the community helped make this decision a win-win for everyone concerned.Our parent company, Journal Communication, is the oldest employee-owned company in the United States.The strong values, high ethics and customer focus of our involved, committed employee-owners define our corporate culture.Part of our company’s heritage is a strong relationship with the communities in which our employee-owners live and work,” he noted.

IPC Communication Services, Inc. is involved in the manufacture, assembly, supply chain management, fulfillment and distribution of media (print, CD and DVD) for the Original Equipment Manufacturer (OEM), software and publishing markets in the documentation kits and magazines and its principal services are fulfillment, e-business and project management.

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.

IPC Communication Services, Inc.
Economic Analysis
Summary Estimated
(All estimates in 2001 dollars)

TOTAL JOBS CREATED

159

Direct

106

Indirect

53

NET POSITIVE STATE REVENUE IMPACT

$ 6,036,000

Revenue Foregone

$ 920,000

Revenue Gain

$ 6,956,000

Average Wage

$ 703/week

Personal Income Generated Over Life of Tax Credit Agreement

$ 86,950,000

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