Tuesday, April 13, 2004
Brownfield Redevelopment and Company Expansions Spur $25 Million in Private Investment
Governor Jennifer M. Granholm today announced that assistance offered through the Michigan Economic Development Corporation (MEDC) will help create job opportunities in Bridgman, East Lansing and Livonia. The expansions of an automotive die casting firm in Bridgman, a high-tech R & D company in Livonia and the redevelopment of a brownfield site in East Lansing will create and retain 464 jobs new jobs and spur more than $25 million in private investment.
"These projects are proof that Michigan remains a powerhouse in the fight to create and retain good jobs," Granholm said. "Our broad range of economic development initiatives is the key to keeping us competitive through the 21st Century and beyond."
In her 2004 State of the State address, Governor Granholm announced a focused seven-point plan for achieving a powerhouse economy. So far this year, the Governor and the MEDC have announced the creation or retention of approximately 5,298 jobs as a result of targeted assistance provided by the MEDC.
ICG Berrien, Inc. will expand its automotive die casting operations in the southwest Michigan community of Bridgman. A Single Business Tax credit offered by the MEDC worth more than $2.3 million over the next 10 years convinced the company to choose Michigan over a competing site in Wisconsin. The expansion will result in the creation of 341 new jobs and an estimated $12.5 million in private investment.
ICG Berrien is a wholly owned subsidiary of ICG Castings, Inc. Formed in 2003, ICG Castings manufactures highly engineered aluminum die cast components primarily for the automotive and appliance industries. The company currently employs 243 people at its Dowagiac facility.
Berrien County has also agreed to provide the company with a $2.5 million loan to support the project.
An economic analysis conducted by the University of Michigan estimates that another 101 jobs will be created indirectly as a result of the expansion, in addition to the 240 jobs being added directly by the company over the next four years. The project will result in a net state revenue gain of more than $10.9 million over the life of the tax credit.
Infineon Technologies North America Corp. plans to relocate and expand its Automotive and Industrial Group from Northville to Livonia resulting in the creation of 73 new jobs over the next five years. The project will result in $4.8 million in private investment.
The company recently opened a major location in Cary, North Carolina and had considered sites in a number of other states for the project. A Single Business Tax credit offered by the MEDC worth more than $1.9 million over the next 10 years helped convince Infineon to grow its existing Automotive Business Group in Michigan.
The city of Livonia is expected to approve a 10-year abatement of the company's new real and personal property taxes worth an estimated $136,900 to support the project.
Infineon Technologies North America Corp. is the principal U.S. subsidiary of Infineon Technologies AG. Founded in 1999, the German-based company is the world's second largest provider of semiconductors for automobile systems and has more than 32,000 employees worldwide.
The U of M economic analysis estimates that 45 jobs will be created directly by the company, with another 28 spun off as a result of the expansion. The new positions are highly compensated with an average weekly wage of $1,731 per week. The project is expected to result in the generation of more than $34 million in personal income for Michigan workers over the life of the tax credit.
The city of East Lansing will benefit from state assistance to help Strathmore Development Company redevelop a blighted site in East Lansing, creating up to 50 new jobs. The MEDC approved the capture of more than $1.4 million in state and local taxes to help prepare the site located at 1427 West Saginaw into a two-story retail office and one-story retail center. Known as "the Pointe," the 2.7-acre site is located where Grand River and Saginaw intersect at the gateway to East Lansing. The project is expected to generate more than $7.8 million in private investment.
The city of East Lansing through the city's brownfield redevelopment authority also approved the capture of $485,000 in local taxes for the project.
"Economic development incentives are a good investment in Michigan's economic future, making us one of the most business-friendly states in the nation," said Don Jakeway, MEDC president and CEO. "The job creation and investment created by these incentives today will have a positive effect on the state for many years to come."
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.