198 New Jobs for Michigan Workers
Osmic, Inc. will expand its operations in Auburn Hills with the help of a Michigan Economic Development Corporation (MEDC) incentive package.The MEDC was able to secure the project by making a competitive business case for the company to expand in Michigan with a high-tech Michigan Economic Growth Authority (MEGA) tax credit.
Osmic selected Auburn Hills over The Woodlands, Texas for the expansion.It is estimated that this expansion will create 198 new jobs, 100 directly by the company, for Michigan workers.
“Osmic is a state-of-the-art company on the verge of major growth,” said Doug Rothwell, chairman of the Michigan Economic Growth Authority (MEGA) board.“Our incentive package helped convince the company to continue their growth and cutting edge research and development in Southeast Michigan.”
Osmic’s expansion plans require the relocation of its existing operations in Troy into a new facility.The company plans to invest $9.8 million over the next five years, including land, building and equipment costs.Construction of the new facility is likely to begin within the next month and operations are expected to begin in March 2002.
“Osmic is the type of business we have been looking for to diversify our base.This is a growing company with a bright future,” said Auburn Hills City Manger William Ross. “We are happy Osmic has committed to investing in Auburn Hills and look forward to a mutually beneficial partnership.”
, according to an economic analysis, completed through software provided by Regional Economic Models, Inc. (REMI).
A key feature of the MEDC incentive package is a high-tech MEGA tax credit, approved today by the MEGA board, worth an estimated $1.1 million over the next 12 years. The MEGA program, which is administered by the MEDC, is used to promote high quality economic growth, job creation and retention in Michigan.The package also includes an abatement of the six-mil State Education Tax valued at $121,388.
The City of Auburn Hills will provide an abatement of real and personal property taxes valued at $413,000 over the next six years.
This project will provide more than $12.2 million in revenue to the state over the life of the agreement, resulting in a net positive gain for the state of more than $11 million, after the MEGA credit.The project is expected to generate more than
$153 million in personal income during that time.
“Osmic is pleased with the support offered by the City of Auburn Hills and the Michigan Economic Development Corporation.Their combined support allows us to stay in Southeastern Michigan while continuing our growth and research activities,” said Osmis’s President John McGill, PhD.“We are a proud Michigan company and look forward to a long and prosperous future within the City of Auburn Hills.”
Osmic, Inc. is a high-tech manufacturer of x-ray optical components for use in x-ray analytical instruments as well as life science and semiconductor lithography applications. The company is the only worldwide commercial supplier of optical products and coatings that are used to manipulate a certain spectrum of light, most commonly referred to as soft x-rays.
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.
(All estimates in 2001 dollars)
TOTAL JOBS CREATED
NET POSITIVE STATE REVENUE IMPACT
|Personal Income Generated Over Life of MEGA Agreement|