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Projects in Troy, Rochester Hills to generate $334 million in new investment
Governor Jennifer M. Granholm today announced that two high-tech companies—EcoMotors International Inc. and Raval USA Inc.—will expand in Troy and Rochester Hills, respectively, as a result of assistance from the Michigan Economic Development Corporation. In addition, the MEDC and the Michigan State Housing Development Authority are backing a major mixed-use redevelopment project at the site of the former Kmart headquarters in Troy. Combined, the projects are expected to create 1,068 new jobs and generate more than $334 million in new capital investment.
“Our efforts to grow the economy and create jobs are producing results,” Granholm said. “Companies are investing and creating jobs here because we have an excellent business climate and outstanding workforce.”
The three projects announced today:
EcoMotors International Inc.– The developer of next generation diesel engines plans to launch a new, $7-million technical center in Troy. The project is expected to create 156 jobs at the company and an additional 183 spin-off jobs according to an economic analysis conducted by the MEDC. Based on the MEDC’s recommendation, the Michigan Economic Growth Authority today approved a state tax credit valued at $5.1 million over 10 years to win the project over a competing site in California. The city of Troy is considering an abatement of up to 12 years to support the expansion. The company currently employs seven associates in Troy.
Raval USA Inc.– The U.S. subsidiary of Israel-based Raval ACS Ltd., plans to invest approximately $7 million in a new design, development and manufacturing facility in Rochester Hills. The company produces valves and venting systems for vehicle fuel tanks. The governor was scheduled to meet with the company in Israel before her investment mission planned for earlier this month was postponed. The project is expected to create 65 jobs at the company and an additional 169 spin-off jobs according to an economic analysis conducted by the MEDC. Based on the MEDC’s recommendation, the Michigan Economic Growth Authority today approved a state tax credit valued at $1.1 million over 10 years to win the project over a competing site in Tennessee. The city of Rochester Hills is considering an eight-year abatement worth$184,682to support the project.
Pavilions of Troy– The city of Troy will use state and local tax capture valued at $13.2 million to support the new $320-million Pavilions of Troy redevelopment project on the 40-acre site of the former Kmart headquarters on Big Beaver Rd. DeveloperRichardson Development Group Inc. will demolish the vacant headquarters, and transform the site into a pedestrian-friendly, mixed-use development that will include approximately 440,000 square feet of commercial/retail space, 132 residential units, public ice skating rink, 3,000-seat theater, restaurants, grocery store and parking. The project is expected to create 500 new jobs.
“Solid teamwork and strong collaboration between the state, the cities of Troy and Rochester Hills and Oakland County has made today’s good news,” MEDC President and CEO James C. Epolito said. “Together, we made a strong business case to win these projects and the new jobs they will create.”
The Oakland County projects are three of 10 economic development projects the governor announced today. In all, they are expected to create a total of 2,051 Michigan jobs.
“We wouldn't be able to capture these opportunities unless we had the quality of life that makes our communities such desirable places to live and work,” Deputy Oakland County Executive Dennis R. Toffolo said. “The cooperation between the cities, Oakland County and the state is vital to our success now and in the future.”
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.
“MSHDA is proud to partner with the MEDC and local communities to redevelop these downtown properties into projects that will help attract 21st century jobs and talent to Michigan,” MSHDA Interim Executive Director Keith Molin said. “These partnerships go a long way in not only helping revitalize traditional downtowns, but also in making our downtowns a more vibrant place to live, work and invest.”
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.