581 New Jobs for Workers in Quincy
Governor John Engler announced today that the Speedrack Products Group, Ltd. has been awarded an incentive package by the Michigan Economic Development Corporation to expand operations in Quincy.
Speedrack selected Quincy, over LaPorte, Indiana, for consolidation of its current production facilities located in Alabama and West Virginia to the former Acorn Window plant.The company plans to invest more than $8.6 million in the new facility, including purchase and renovation of the 330,000 square foot facility, acquisition of new machinery and equipment, as well as transferring equipment from the two existing facilities.
“In spite of attractive incentive packages from other states, Speedrack decided to expand in Michigan,” Engler said.“This is a great win for Michigan, especially for the Quincy area workers who will benefit from the more than 500 new, good paying jobs.”
It is estimated that the project will create 581 new jobs, 300 directly by the company, for Michigan workers., according to an economic analysis, completed by the University of Michigan. “The village looks forward to showcasing both Michigan’s and the village of Quincy’s commitment to expanding business opportunities in the state and in the region,” said Derek Schroeder, Quincy village manager.
“The village looks forward to a long and prosperous relationship with Speedrack, proving again, that Michigan is a great place to do business.”
A key component of the assistance provided by the MEDC is a Single Business Tax credit worth an estimated $1.4 million over the next five years.
The incentive package also includes a Community Development Block Grant of up to $805,000 for infrastructure improvements and an abatement of the six-mill State Education Tax valued at $91,300.
The village of Quincy has proposed a 50 percent abatement of the company’s real property improvements and personal property taxes for 12 years.The estimated value of this local abatement is $441,400.
This project will provide more than $7.3 million in revenue to the state over the life of the agreement, resulting in a net positive gain for the state of more than $5.9 million, after the tax credit. The project is expected to generate more than $91.9 million in personal income during that time.
“The Michigan Economic Development Corporation, as well as the representatives from Branch County and the village of Quincy, have been extremely proactive in this process and we’re excited to be expanding our operations in Michigan,” said Jim Johnson, president of Speedrack Products Group. “We’re confident that this new, state-of-the-art manufacturing facility will not only provide new opportunities for the people in Quincy, but will provide growth opportunities for our existing personnel as well.”
Speedrack Products Group, Ltd. is a manufacturer of metal warehouse storage/pallet racks.The company is headquartered in Sparta, Michigan, where it also operates another business, the sales arm of the company.Together, the companies currently have 51 employees in Michigan.
The Michigan Economic Development Corporation, a partnership between the state and local communities, promotes smart economic growth by developing strategies and providing services to create and retain good jobs and a high quality of life.
Speedrack Products Group, Ltd.
(All estimates in 2001 dollars)
|TOTAL JOBS CREATED ||581|
|NET POSITIVE STATE REVENUE IMPACT||$ 5,925,000|
|Revenue Foregone||$ 1,434,000|
|Revenue Gain||$ 7,359,000|
|Average Wage||$ 540/week|
|Personal Income Generated Over|
Life of Tax Credit Agreement
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