Tuesday, January 20, 2004
Sensicore to Stay and Grow in
Governor Jennifer M. Granholm announced today that assistance from the Michigan Economic Development Corporation (MEDC) has helped convince Sensicore Inc. to expand its research and manufacturing operations in Ann Arbor.
The company plans to invest an estimated $4.7 million in the project which is projected to create 338 new jobs, including 156 directly by the company.
"The high-paying jobs and investment this project brings is a magnet for further high-tech expansion in the state," Granholm said. "We appreciate that Sensicore has chosen Michigan to commercialize and grow this exciting new technology."
Sensicore was founded in 2000 by the Ann Arbor-based venture capital firm Ardesta LLC. Spun out of research conducted at the University of Michigan, the company has developed an innovative lab-on-a-chip multi-sensor device. Applications include a wide variety of environmental and municipal water quality monitoring functions, including the development of widely dispersed sensor networks to monitor the quality of water right up to the home.
The company considered New Jersey for the expansion. A Single Business Tax credit offered by the MEDC worth more than $1.5 million over the next eight years helped convince Sensicore to expand its operations in Ann Arbor.
"Michigan's high-tech business sector scored another important win today," said Don Jakeway, MEDC president and CEO. "This project confirms the importance of the state's technology transfer efforts. The tax credit will ensure that this homegrown technology stays in Michigan and creates jobs for our families."
The city of Ann Arbor Water Plant has agreed to work with Sensicore on market and technology validation testing. The support of the water plant could potentially save Sensicore $73,000 over the next five years.
"The MEDC's proactive approach toward keeping advanced technology in the state was a major contributor in our decision to remain in Ann Arbor," said Malcolm Kahn, Sensicore president and CEO. "We look forward to becoming a productive part of the Michigan's small-tech economic development and toward a continuing strong relationship with the University of Michigan in our effort to ensure the quality our nation's water supply and improve its homeland water security efforts."
An economic analysis conducted by the University of Michigan estimates that another 182 jobs will be created indirectly as a result of the expansion, in addition to the initial 156. The project will result in a net state revenue gain of more than $8.2 million over the life of the employment tax credit.
The Michigan Economic Development Corporation, a partnership between the state and local communities, promotes smart economic growth by developing strategies and providing services to create and retain good jobs and a high quality of life.
(All estimates in 2004 dollars)
|TOTAL JOBS CREATED||338|
|NET POSITIVE STATE REVENUE IMPACT||$ 8,223,000|
|Revenue Gain||$ 9,746,000|
|Personal Income Generated Over|
Life of the Tax Credit Agreement