Tuesday, August 14, 2007
Michael Shore, MEDC
High-Tech Companies Growing in State
Governor Jennifer M. Granholm today announced the Michigan Economic Development Corporation (MEDC) is helping six companies grow in Michigan and is backing three redevelopment projects expected to create a total of 2,982 jobs and involve more than $52.3 million in new capital investment in communities throughout the state.
The nine projects announced today:
- Caraco Pharmaceutical Laboratories Ltd.: The developer, manufacturer, marketer and distributor of generic and private-label pharmaceuticals to the nation's largest wholesalers, distributors, drugstore chains and managed care providers plans to invest $14.5 million in a 140,000-square-foot expansion of its manufacturing operations in Detroit. The project will create 1,648 new jobs, including 598 directly by the company. A state tax credit valued at $6.8 million over 10 years helped convince the company to expand in Michigan over competing sites in North Carolina and South Carolina. The city of Detroit has approved two local tax abatements for up to 12 years to support the project. When combined with personal property tax savings under the new Michigan Business Tax, the estimated value of the abatements is $5.7 million. In addition, the MEDC is working with the Michigan Department of Labor and Economic Growth, Henry Ford Community College, Wayne State University and Detroit Michigan Works! to develop and implement a recruitment and training program for new and current Caraco employees.
- Adaptive Materials Inc.: The recognized world leader in the design and development of portable fuel cell technology plans to invest $2.8 million to relocate its R&D operations and pilot production to a larger facility in PittsfieldTownship. The project is expected to create 187 new jobs, including 100 directly by the company. A state tax credit valued at $760,000 over seven years helped convince the company to invest and grow in Michigan versus other competing states. Last year, Adaptive Materials was awarded a $6.27 million commercialization loan through the 21st Century Jobs Fund to move its fuel cell system into commercial markets. Pittsfield Township is considering a 12-year abatement worth $41,000 to support the expansion.
- HandyLab Inc.: Thedeveloper of novel clinical diagnostic testing products plans tosystem, in PittsfieldTownship
- MediaSpan Group Inc.: The leading provider of digital content management and online marketing solutions for over 4,000 local media properties plans to invest $1.7 million to relocate its headquarters from North Carolina to Ann Arbor. The project is expected to create 191 new jobs, including 82 directly by the company. A state tax credit valued at $873,000 over seven years helped convince the company to relocate to Michigan over a competing site in Florida. Scio Township has approved a 12-year abatement worth $89,000 to support the expansion.
- Bolton & Associates LLC.:A leading civil engineering, land planning and surveying firm will invest $1 million to expand its Southfield
- Kolbenschmidt Pierburg AG (KSPG)Auburn Hills. The project is expected to create 353 new jobs, including 153 directly by the company. A state tax credit valued at $3.4 million over eight years helped Michigan win the expansion over competing sites in Indiana and South Carolina. To support the project, the city of Auburn Hills has proposed an eight-year local property tax abatement valued at approximately $147,600.
- City of Grand Rapids:State and local tax capture valued at $554,550 will support the construction of new commercial building in downtown Grand Rapids to include a two-story parking deck and 46,000-square-feet of office space. Developer Front Street Properties LLC will redevelop contaminated property located at 678 Front Avenue which is expected to create up to 75 new jobs and $10.3 million in private investment. MSHDA partnered with the MEDC to support this project.
- Ingham County Land Bank Fast Track Authority:The Ingham County Land Bank in partnership with the Ingham County Brownfield Redevelopment authority will utilize state and local tax capture valued at more than $1.3 million to redevelop and revitalize tax reverted properties across Ingham County. The redevelopment activities will include the renovation of approximately 14 homes, the construction of 37 new homes and two additional commercial and mixed-use developments and title clearance of 90 additional properties. The projects are collectively anticipated to create 50 new jobs. MSHDA partnered with the MEDC to support this project.
- City of Owosso:State and local tax capture valued at $257,992 will help finance site preparation and infrastructure improvements to facilitate the expansion of after-market auto part manufacturer TiAL Products. The three-phase, 58,000-square-foot expansion is expected to create 40 new jobs and generate up to $8 million in private investment.
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