Tuesday, July 13, 2004
Paul Krepps, MEDC
Company Chooses Michigan Over Indiana, South Carolina
Governor Jennifer M. Granholm announced today that assistance offered through the Michigan Economic Development Corporation (MEDC) has convinced Lacks Enterprises Inc. to undertake a five-year, five-phase expansion of its operations in Kentwood that is expected to result in over 800 new Michigan jobs, including over 400 directly by the company.
"We are happy to see Lacks growing, prospering and creating new jobs for Michigan families," said Granholm. "This company is a proven innovator in manufacturing and has been an anchor of the Grand Rapids-area economy for more than 40 years."
A Single Business Tax credit approved by the MEDC and worth $2.5 million helped convince Lacks Enterprises to expand in Michigan rather than competing sites in Elkhart, Indiana and Fountain Inn, South Carolina.
In her 2004 State of the State address, Governor Granholm announced a focused plan for achieving a powerhouse economy. So far this year, the Governor and the MEDC have announced the creation or retention of approximately 23,344 jobs as a result of targeted assistance provided by the MEDC.
The Lacks expansion is one of seven major economic development projects the Governor announced today. In all, they are expected to create or retain a total of 5,987 Michigan jobs, including 3,543 directly by the companies.
"We are pleased that Governor Granholm and the MEDC backed this key incentive to support our new investment and expansion in Kentwood," Lacks Enterprises Executive Director Roger Andrzejewski said "Michigan's investment in Lacks Enterprises will enhance our competitiveness in the global market, allow us to grow the business and create hundreds of new jobs in the state."
The city of Kentwood is expected to support the expansion with an abatement of the company's new real and personal property taxes, worth a combined total of $4.3 million over the life of the abatement for all phases of the expansion.
"Lacks Enterprises continues to be one of the foundation companies to the West Michigan economy," noted Right Place, Inc. president Birgit Klohs. "It has been a pleasure to assist its numerous expansion projects and to work with such valuable partners as the city of Kentwood and the MEDC."
"World-class companies like Lacks are the foundation of our manufacturing industry," said MEDC President and CEO Don Jakeway. "It is in the state's interest, and that of our workforce, to keep them in Michigan. I am pleased that our aggressive use of state and local incentives has helped make that possible."
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.
Lacks Enterprises Inc.
(All estimates in 2004 dollars)
|TOTAL JOBS CREATED||816|
|NET POSITIVE STATE REVENUE IMPACT||$14,485,000|
|Personal Income Generated Over|
Life of the Tax Credit Agreement