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Tuesday, March 18, 2008
Project to create $24 million in private investment
Governor Jennifer M. Granholm today announced that Boar's Head Provisions Co. Inc. plans to expand its operations in Holland Township. The company will invest $24 million to acquire property and new equipment for the expansion. The project is expected to create 208 new jobs at the company and an additional 239 spin-off jobs over the next seven years. While considering other states, Boar’s Head worked closely with the Michigan Economic Development Corporation during the expansion decision process.
“Boar’s Head’s decision to expand in Holland is just one example of how our economic development strategy is retaining Michigan companies and growing jobs,” Granholm said. “This expansion and the jobs it will create will strengthen Michigan’s manufacturing industry sector and create the opportunity for future job growth.”
Based on the MEDC’s recommendation, the Michigan Economic Growth Authority board today approved a state tax credit valued at more than $1.6 million over seven years to win the company’s expansion. Holland Township is anticipated to support the project with a local property tax abatement valued at about $748,000 over 12 years.
“Our collaborative effort combined with our ever-improving business climate and second-to-none workforce continues to attract investment from national companies that already have a presence in Michigan,” MEDC President and CEO James C. Epolito said. “We worked closely with Lakeshore Advantage and Holland Township to make the strongest business case for Michigan.”
An economic analysis conducted by the MEDC estimates that increased economic activity created by the expansion will generate more than $112 million in personal income for Michigan workers over the life of the tax credit.
"Both the State of Michigan and Holland Township continue to be excellent places to do business for Boar’s Head Provisions Co., Inc., and we are very pleased with the opportunity that has been afforded us in our continuing expansion strategy,” said Christen Antrup, Boar’s Head plant manager, Holland.
The Boar’s Head expansion is one of 12 economic development projects the governor announced today. In all, they are expected to create and retain a total of 6,066 Michigan jobs.
“Two hundred new jobs is a great shot in the arm for our economy,” Lakeshore Advantage President Randy Thelen said. “Boar’s Head has quickly become on of our top employers and we were pleased to partner with the company, community and MEDC to make this project a reality.”
Headquartered in Sarasota, Florida, the company processes premium meats, cheeses and related condiments under the Boar’s Head brand name throughout the United States. Its first delicatessen products were distributed under the Boar’s Head name in Brooklyn, New York in 1905 and in 1933, the company began manufacturing its own products. Boar’s Head purchased the former Henry House facility in Holland in 1999 to meet the increasing demand for its products and today also operates manufacturing facilities in Virginia, New Jersey and Arkansas.
In her 2008 State of the State address, Granholm emphasized the importance of creating opportunity in the changing world of the 21st century. Since January 2005, the Governor and the MEDC have announced the creation or retention of more than 226,000 jobs as a result of targeted assistance provided by the MEDC.
Boar's Head Provisions Co. Inc.
(All estimates in 2008 dollars)
TOTAL JOBS CREATED 447
NET POSITIVE STATE REVENUE IMPACT $7,062,000
Revenue Foregone $1,618,000
Revenue Gain $8,680,000
Average Weekly Wage $662
Personal Income Generated Over 7-Yr Tax Credit Agreement $112,749,000
About Michigan Economic Development Corporation (MEDC)
The Michigan Economic Development Corporation is the state’s marketing arm and lead advocate for business development, job awareness and community development with the focus on growing Michigan’s economy. For more information on the MEDC and our initiatives, visit www.MichiganBusiness.org. For Pure Michigan® tourism information, your trip begins at www.michigan.org. Join the conversation on: Facebook Instagram LinkedIn, and Twitter.
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