©2016 Michigan Economic Development Corporation

New business expansions, community improvements, and emergency infrastructure assistance gain state approval

Tuesday, July 22, 2014

Kathy Fagan
517.335.4590

Nine companies to invest $1 billion, add 3,877 jobs 

LANSING, Mich. – The Michigan Economic Development Corporation today announced Michigan Strategic Fund approval of state incentives to nine business expansions and community improvement projects and $6 million in emergency infrastructure funding. The projects are expected to generate more than $1 billion in new investments and add 3,877 new jobs in Michigan.

“The reinvention of Michigan is working and making our state the Comeback State. These projects will add to our growing momentum and economic growth,” said Governor Rick Snyder. “We’ve worked to better our state’s business climate and our efforts are bringing strong results. These new investments in our state will strengthen our communities, spur new commercial investment in our cities and fuel new opportunities for our talented workforce.”

Michigan Business Development Program incentives:

Brembo North America, Inc. is the largest wholly owned subsidiary of Brembo S.P.A, a world leader of brake systems for automobiles. Incorporated in 1988, Brembo North America’s headquarters and tech center are located in Plymouth. The company plans to purchase property and construct an industrial facility in Albion Township to produce brake rotor castings, investing more than $78.4 million and creating 254 jobs. As a result, Brembo has been awarded a $2 million Michigan Business Development Program performance-based grant. In addition, the company will receive $1.5 million in Community Development Block Grant funds for job training. The company has also received an amendment to its existing MEGA tax credit to allow to extend the length of the credit and to allow for the additional jobs.

Challenge Mfg Company, LLC, is a leading Tier 1 manufacturer of engineered modular assemblies and metal formed products for the automotive industry. Headquartered in Walker (Kent County), the company operates four facilities in West Michigan with more than 2,000 employees. The company has won numerous new contracts and plans to establish a new manufacturing facility in Watertown Township (Clinton County). The project will generate a total capital investment of $65.5 million and create 420 jobs, resulting in a $2.3 million Michigan Business Development Program performance-based grant. Michigan was chosen over competing sites in Tennessee and Missouri. Watertown Charter Township plans to support the project with a property tax abatement. To learn about employment opportunities with Challenge, visit http://challenge-mfg.com/careers/.

In addition, MSF approved an Act 381 Brownfield work plan submitted by the Oakland County Brownfield Redevelopment Authority for school and local tax capture valued at $2,932,256 on behalf of Challenge Manufacturing’s new assembly plant it is constructing at its site in the City of Pontiac. Eligible activities that will be undertaken to alleviate brownfield conditions include site demolition to remove existing concrete and site preparation activities including land balancing and grading, geotechnical engineering, temporary erosion control and temporary facilities. The project was also approved for a $2.5 million MBDP grant at the May 2014 MSF meeting.

H.A. Automotive Systems Inc. is the North American subsidiary of Shanghai Changhui Industry Development Company Ltd., an automotive lighting components supplier established in 1994 and headquartered in Shanghai, China. The company, along with its parent, has secured new contracts to supply North American automotive OEMs and needs to establish a presence in North America. The company plans to purchase a building in the City of Troy to establish a headquarters, manufacturing, and R&D facility. The project will generate a total capital investment of $28.8 million and create 368 new jobs, resulting in a $2.25 million Michigan Business Development Program performance-based grant. Michigan was chosen over competing sites in several southern states as well as Texas and Missouri. The City of Troy plans to offer support to the project in the form of a PA 198 property tax abatement. Individuals interested in learning about employment opportunities with H.A. Automotive should send an email to haautohr@gmail.com.

Magna Exteriors and Interiors USA, Inc., DBA Magna Interior Trim Components, is a subsidiary of Magna International, Inc. In 2010 Magna Interior Trim acquired Continental Plastics Co., an automotive interior components parts supplier with facilities in China Township (St. Clair County) and Benzonia Township (Benzie County). In January 2014, Magna Interior Trim received an $822,000 Michigan Business Development Program performance-based grant for expansions at both locations which were expected to generate $3.6 million and create 274 jobs. Since then, the company has created the 274 positions and has experienced additional growth which will require the hiring an additional 169 employees. As a result of the additional jobs, the company’s MBDP grant has been increased by $507,000. For employment information, visit www.magna.com/careers.

Suniva, Inc., established in 2007, is the leading American manufacturer of high-efficiency crystalline silicon photovoltaic (PV) solar cells and high-power solar modules. The company is known for its high-quality products, industry-leading technology, reliability and high power density. Headquartered in metro-Atlanta, GA, Suniva sells its advanced PV cells and modules globally. The company plans to create a new state-of-the-art manufacturing facility in Saginaw Township, investing up to $12.5 million and creating 350 jobs. As a result, Suniva has been awarded a $2.5 million Michigan Business Development Program performance-based grant. Michigan was chosen over competing sites in Mississippi and Georgia. Saginaw Township has offered support to the project in the form of a property tax abatement. For information on Suniva, visit www.suniva.com.

Private Activity Bond authorization: 

Middleville Tool & Die Co. is a family-owned business created in 1966 that manufactures stamped tubular products for the appliance, office and automotive industries. Middleville and its real estate and building holding company Middleton Enterprises, LLC received MSF approval of a Bond Authorizing Resolution for private activity bond financing in the amount of $6.3 million to invest in new machinery, equipment and office furnishings as well as expand their current manufacturing facility in Yankee Springs Township (Barry County). The bonds will be privately purchased by Macatawa Bank. The project will create 35 new jobs. For information on careers with Middleville Tool & Die, visit http://www.mtd-inc.com/jobs.htm.

MEGA amendments:

General Motors, LLC and GM Subsystems Manufacturing, LLC MEGA amendment – In June 2009 the Michigan Economic Growth Authority approved a Global Retention MEGA Tax credit for General Motors for the retention of up to 20,000 employees. Since then the credit has been amended and currently allows for 33,000 retained employees. The company has experienced continued growth in Michigan and plans to invest approximately $800 million in upgrading various facilities in Michigan in anticipation of future vehicle platforms and programs. Additionally, the company plans to create 1,750 new jobs related to consolidation of various engineering functions from outside of Michigan to a site in Michigan. As a result of this growth, MSF approved an increase in the maximum allowance for retained jobs on its Global Retention MEGA tax credit from 33,000 to 34,750.

The City of Detroit Brownfield Redevelopment Authority will use local and school tax capture valued at $8,033,979 to redevelop five acres of property located at 3800 and 3750 Woodward Ave. in the City of Detroit. Eligible activities include demolition, lead and asbestos abatement, site preparation and infrastructure improvements. The completed project will include a five-story medical office building with retail space on the first floor and a separate four-story mixed-use commercial building, as well as a parking ramp. The total capital investment for the entire project will be approximately $73 million and 30 full-time jobs related to the medical field are expected to be created. This amends a previously announced MBT Brownfield credit project approved in 2011, which will be used for new construction of the buildings.

YanFeng USA Automotive Trim Systems, Inc. is a Tier 1 Automotive plastics interior trim supplier for major OEMs in North America with facilities in the City of Warren, Harrison Charter Township and Riverside, Missouri. In 2010 the MEGA Board approved a seven-year Standard MEGA Tax Credit to purchase its facility in Harrison Charter Township and create 131 new jobs. Since then the company has been awarded multiple new contracts to manufacture center consoles, door panels and instrumental panels for several automotive OEMs. The company plans to expand its current manufacturing facility in Harrison Charter Township, investing up to $56.2 million and creating 519 jobs. As a result, the company’s MEGA credit has been amended to allow for the additional 519 jobs and to add the City of Warren as a location for eligible jobs. For information on employment opportunities with YanFeng, visit www.yanfengusa.com.

Community Development Block Grant projects:

The County of Grand Traverse was awarded $880,000 in Community Development Block Grant funds to remediate blight of environmentally contaminated properties need for the Uptown Development TC, LLC Blight Elimination Project in Traverse City. The finished project will consist of multi-story condominium units as well as “live-work” mixed use units. The CDBG funds will include site demolition, lead and asbestos abatement, clearing and grubbing, excavation and removal of contaminated soils and placement of new engineered fill. In addition, the County of Grand Traverse Brownfield Redevelopment Authority will use local and school tax capture valued at $1,977,160 for extensive site preparation activities such as geotechnical engineering, land balancing, relocation of existing utilities and infrastructure improvements. The total investment will be approximately $11.8 million and 12 permanent full time jobs are expected to be created for the live-work portion of the project.

The Community Development Block Grant Deep Freeze Fund will set aside $6 million in response funding to award grants of up to $1 million for eligible projects impacted by the extreme cold this past winter. Eligible communities must be non-entitlement communities and have been designated as a State of Emergency by either the state or local jurisdiction. Communities must have a need for hard infrastructure repairs (water, sewer and/or road work related to work/sewer). Currently Snyder has declared a State of Emergency for the following counties: Charlevoix, Cheboygan, Chippewa, Delta, Emmet, Gogebic, Luce, Mackinac and Marquette. Priority will be given to applicants who have matching contributions, whether they have a traditional downtown and the impact the improvements will make on the entire community.

Communities interested in applying for Deep Freeze assistance should visit http://www.michiganbusiness.org/urgent-need/.

Pure Michigan is a brand representing business, talent and tourism initiatives across Michigan. These efforts are driven by the Michigan Economic Development Corporation, which serves as the state’s marketing arm and lead advocate for business growth, jobs and opportunity with a focus on helping grow Michigan’s economy.

For more on the MEDC and its initiatives, visit michiganbusiness.org. For Michigan travel news, updates and information, visit michigan.org. Michigan residents interested in seeking employment with any of Michigan’s growing companies should check mitalent.org, where more than 81,000 jobs are currently available in a variety of industries.