Governor Jennifer M. Granholm today announced that assistance offered through the Michigan Economic Development Corporation (MEDC) will help create and retain job opportunities in Grand Rapids, and Sterling Heights. Brownfield sites in Grand Rapids and Detroit will be redeveloped and the expansion of a high-tech firm in Sterling Heights will create and retain 181 jobs for Michigan workers.
"Michigan is continuing to use every economic development tool in our arsenal to attract new jobs and to keep Michigan jobs here," Granholm said. "The incentives Michigan offers to promote brownfield redevelopment and high-tech job creation are some of the best tools available in any state in the nation and they are at the heart of our state's expanding economic success."
Mitsubishi Heavy Industries Climate Control, Inc. (MCC) plans to invest an estimated $7.4 million in a new technical center to be located in Sterling Heights. It is projected to create 115 new jobs, including 75 directly by the company by the year 2014.
The company considered establishing the new technical center in Michigan or a competing site in Indiana. However, a Single Business Tax credit offered by the MEDC worth more than $1.3 million over the next 10 years helped convince MCC to expand in Sterling Heights. The new center will bring research and development activity to Michigan that is currently done in Japan.
The city of Sterling Heights is also expected to approve a 50 percent abatement of the company's new real and personal property taxes worth an estimated $468,000 over the next nine years to further support the project.
In addition to the 75 jobs created directly by the company, an economic analysis conducted by the University of Michigan estimates that another 40 jobs will be created indirectly as a result of the increased economic activity generated by the expansion. The project will result in a net state revenue gain of more than $4.4 million over the life of the employment tax credit.
MCC is a wholly owned subsidiary of Mitsubishi Heavy Industries, Ltd., Japan. Headquartered in Franklin, Indiana, MCC manufactures and supplies automotive air conditioning systems for automakers and tier one suppliers. The company also maintains a customer support office in Southfield and a sales/service office in Rancho Dominquez, California.
In the city of Detroit, Standard Federal Bank will benefit from brownfield tax capture valued at about $241,500. The revenue will be used to prepare blighted property at the corner of Gratiot and Conner for construction of a new 5,000-square-foot bank branch. The property is part of a 17-acre parcel formerly known as the Airport Trailer Park. Site preparation activities will include removal of concrete debris from demolition of mobile homes and abatement of contaminates including arsenic and lead.
The city of Detroit, through the city's brownfield development authority, will capture more than $152,145 in local property taxes to assist with site preparation.
Standard Federal, headquartered in Troy, has more than $50.5 billion in assets. One of the largest banks in the Midwest, Standard Federal serves individuals, small businesses, middle market companies and institutions through 273 branches. Subsidiaries include ABN AMRO Mortgage Group, Inc. and Executive Relocation.
In Grand Rapids, Custer Office Environments, an authorized West Michigan Steelcase dealer, plans to convert a 54,500-sq.-ft. former warehouse located at 217 Grandville Street in the Heartside Neighborhood into showroom and office space. The structure was originally built in 1910.
The project received approval today to capture more than $343,800 in state and local taxes to fund demolition and street and sidewalk upgrades to facilitate the project. The city of Grand Rapids, through its brownfield development authority, will capture approximately $177,849 in local property taxes for the project.
"Michigan incentive programs are a solid investment with future returns. Over the past six years, our job-creation tax credits have helped Michigan attract more corporate facilities and expansions than any other state," said Don Jakeway, MEDC president and CEO. "The tax credits and brownfield incentives offered today will help Michigan maintain its position as a leader in automotive R & D and promote the continuing development of our cool cities."
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.