Companies investing more than $162 million to grow in state
LANSING– Governor Jennifer M. Granholm today announced eight company expansions and four community redevelopment projects are set to create more than 2,900 new jobs and generate over $162 million in new investment in Michigan. The governor also announced the first advanced battery development incentives as a result of the recently enacted Michigan Advanced Battery Credits (MABC) initiative.
“The job-creating investments announced today demonstrate that our economic plan and ‘go anywhere, do anything’ approach to bring jobs to Michigan is working under the most challenging circumstances,” Governor Granholm said.
The Michigan Economic Growth Authority today approved MABC incentives to Ford and GM for pack engineering, integration and assembly, vehicle engineering and advanced battery technologies.The law provides up to $335 million in refundable tax credits to encourage companies to develop and manufacture advanced batteries and commercialize advanced battery technologies in Michigan. The initiative – passed with overwhelming bipartisan support and signed by Granholm into law last month - is the first of its kind in the United States.
“Michigan is well positioned to become the advanced battery capital of the world,” Granholm said. “We are moving at lightning speed to ensure that the next generation of vehicles and advanced battery systems are researched, designed and manufactured here.”
The MEGA projects approved today are:
- McLaren Performance Technologies–The automotive engineering firm plans to invest $8.9 million to expand operations in Livonia and support its new power-transfer unit business to capitalize on fuel efficiency improvements in the automotive industry. The project is expected to create 74 new jobs, including 34 directly by the company. Based on the MEDC’s recommendation, the Michigan Economic Growth Authority (MEGA) board today approved a state tax credit valued at $1.1 million over 10 years to help convince the company to expand in Michigan over a competing site in Ontario. The city of Livonia has approved an abatement to support the project.
- Patrick Energy Services –The provider of engineering, program and construction management services for high-voltage electric infrastructure and smart grid technologiesplans to invest $2.2 million to expand operations in Novi.The project is expected to create 185 new jobs, including 90 directly by the company. Based on the MEDC’s recommendation, the MEGA board today approved a state tax credit valued at $1.5 million to help convince the company to expand in Michigan. The city of Novi has approved additional administrative assistance to support the project.
- RIIS LLC–The software and applications development firm plans to expand its headquarters in OaklandCounty at a site to be determined by the company. The project is expected to generate $946,000 in new investment and create 95 new jobs, including 40 directly by the company. Based on the MEDC’s recommendation, the MEGA board today approved a state tax credit valued at $1.1 million over seven years to help convince the company to expand in Michigan over competing sites in North Carolina and Ohio. Oakland County will provide training funds to support the project.
- Global Tooling Systems - The leading supplier of tooling systems and services for the commercial and military aerospace industries plans to invest $17.2 million to relocate operations to Macomb Township. The project is expected to create 400 new jobs, including 184 directly by the company. Based on the MEDC’s recommendation, the MEGA board today approved a state tax credit valued at $2.2 million over seven years to help convince the company to expand in Michigan over competing sites in Texas, Washington, California and Georgia. Macomb Township has approved an abatement to support the project. In addition, the MEDC has proposed up to $90,000 through the Economic Development Job Training program.
- K&S Wire Products LLC–The Hudson-based venture, which will focus on manufacturing wire products and eventually plastic shopping carts, plans to invest $1.2 million to purchase shopping cart manufacturing equipment. The project is expected to create 356 new Michigan jobs, including 157 directly by the company. Based on the MEDC’s recommendation, the MEGA board today approved a state tax credit valued at $917,028 over seven years to convince the company to choose Michigan over a competing site in Ohio. The city of Hudson is considering an abatement to support the project.
- Michigan Brewing Company – The Webberville-based brewer of craft beers is competing to secure a new addition to its product line: a craft beer for musician Kid Rock. The company plans to invest $7 million in the project, which is expected to create 394 new Michigan jobs, including 161 directly by the company. Based on the MEDC’s recommendation, the MEGA board today approved a state tax credit valued at $722,957 over seven years to help win the project for Michigan over competing sites in Minnesota and Pennsylvania. The village of Webberville is considering an abatement to support the project.
- Altus Brands LLC–The veteran-owned small business specializing in manufacturing products for hunters, shooters and sportsmen, including Pro-Ears, a leader in hearing-protection for shooters; Benchmaster, a leader in shooting rests; and Crossfire slings for guns and bows, will invest $710,000 to relocate and expand of existing operations in Garfield Charter Township. The project is expected to create 57 new jobs, including 25 directly by the company. Based on the MEDC’s recommendation, the MEGA board today approved a state tax credit valued at approximately $68,619 over five years to help convince the company to expand in Michigan over competing sites in Pennsylvania and Colorado. Garfield Township is considering a tax abatement to support the project.
- General Motors Corporation–Pending final approval by the company, GM is considering a facility in Southeast Michigan to produce battery modules and to provide lithium ion batteries for the Chevrolet Volt. The project would involve an investment of approximately $43 million and is expected to create 571 new Michigan jobs, including 140 directly by the company. Based on the MEDC’s recommendation, the MEGA board today approved a state tax credit valued at $6.8 million to encourage GM to locate the project in Michigan over other North American locations.
- Grand Traverse County– State and local tax capture valued at $1.8 million will support a new, five-story, mixed-use commercial/retail/residential building in Traverse City with private parking in the alley-level basement. The building will replace the former Firestone property and the former Annie’s properties. The project is expected to generate up to $20 million in investment and create up to 60 new jobs.
- City of Hazel Park– State and local tax capture valued at $1 million will support the redevelopment of 7.4 acres of vacant land across five parcels situated along the 8 Mile corridor. The project will include the construction of a Sav-A-Lot grocery store. The project is expected to generate $11.9 million in new investment and create approximately 250 jobs.
- City of Sterling Heights– State and local tax capture valued at more than $1.4 million will support a modern, state-of-the-art business development and technology center for BAE Systems Land and Armaments. The project will initially consist of 175,000 square feet on approximately 81 acres. The project is expected to generate $44 million in new investment and will create 460 new jobs. BAE was approved for a MEGA tax credit in April 2008.
- City of Bay City– State and local tax capture valued at $2 million will support the redevelopment of 11.32 acres of former residential and commercial property that has been vacant since 1979. The project, with capital investment of $5 million, will retain 77 jobs.
“The scope and diversity of these projects and the new jobs they are creating in communities across the state is a testament to our competitive business climate, outstanding workforce and tremendous partnership with local governments and economic developers,” MEDC President and CEO James C. Epolito said.
In her 2009 State of the State address, Granholm emphasized the importance of creating jobs, diversifying Michigan’s economy, and providing education and training to our workers. Since January 2005, the Governor and the MEDC have announced the creation or retention of more than 310,500 jobs as a result of targeted assistance provided by the MEDC.
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.
