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Michigan selected for high-tech investment, 247 new jobs
Governor Jennifer M. Granholm today announced TransIT Solutions LLC,a software development and consulting company,plans to invest approximately $3 million over the next five years to expand its operations in Bay City. The project is expected to create 247 new Michigan jobs, including 105 directly by the company. Assistance offered through the Michigan Economic Development Corporation (MEDC) helped convince the company to choose Michigan for its high-tech expansion over competing sites in Arizona, California and Wisconsin.
“Our comprehensive economic plan is laying the foundation for companies to grow and create new jobs,” Granholm said. “TransIT Solutions is the kind of high-tech company we are targeting to transform our economy, and we look forward to their continued success in Bay City.”
Based on the MEDC’s recommendation, the Michigan Economic Growth Authority board today approved a state tax credit valued at $986,000 over seven years to win the company’s investment. To support the project, the City of Bay City is considering a 12-year Industrial Facilities Tax Exemption abatement worth $138,500 and a 12-year Obsolete Property Rehabilitation Exemption worth $281,541.
“Our high-skilled workforce continues to make our state an attractive location for cutting-edge companies like TransIT Solutions,” MEDC President and CEO James C. Epolito said. “We’re proud to partner with Bay City to help this company grow and create jobs in the city.”
Established in 2005, TransIT Solutions develops software solutions for the transportation industry. The company plans to renovate a building on Washington Ave. to house information technology software writers. TransIT Solutions currently employs four associates in Bay City.
“When looking for a location to expand our TransIT Solutions operation we wanted to stay in Michigan,” company President Allison Short said. “With the assistance of the MEDC and the City of Bay City we now have the ability to invest in the future of Mid-Michigan by creating high-tech jobs for the development of our software products.”
An economic analysis conducted by the MEDC estimates that increased economic activity created by the expansion would generate an additional 142 indirect Michigan jobs, in addition to the 105 jobs that would be created directly by the company. The project is expected to generate more than $50 million in personal income for Michigan workers over the life of the tax credit.
“We are pleased that TransIT Solutions chose to expand in downtown Bay City. This is a huge victory for Bay City and a major step forward in our efforts to further diversify and grow Bay City’s economy,” Deputy City Manager Steven Black said.
The TransIT Solutions expansion is one of 10 economic development projects the governor announced today. In all, they are expected to create a total of 2,051 Michigan jobs.
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 237,000 jobs as a result of targeted assistance provided by the MEDC
TransIT Solutions LLC
(All estimates in 2008 dollars)
TOTAL JOBS CREATED 247
NET POSITIVE STATE REVENUE IMPACT $2,922,000
Revenue Foregone $986,000
Revenue Gain $3,908,000
Average Weekly Wage $959
Personal Income Generated Over 7-Yr Tax Credit Agreement $50,764,000
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.