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Tuesday, July 19, 2011
More than $198.2 million in new investment and create a projected 1,142 direct jobs in communities across the state
LANSING- The Michigan Economic Growth Authority (MEGA) today approved four brownfield redevelopment projects, a High Technology MEGA tax credit for a company choosing to locate in Michigan and amended several prior agreements that, in total, are estimated to generate more than $198.2 million in new investment and create a projected 1,142 direct jobs in communities across the state.
“Today’s actions will help transform blighted, contaminated or functionally obsolete properties into new centers of economic growth and activity, “said Michael A. Finney, President and CEO of the Michigan Economic Development Corporation. “At the same time, our economic gardening strategy is working to help companies grow and increase job opportunities in Michigan.”
The MEGA board approved incentives for the following Michigan projects:
Plasan Carbon Composites Inc. – The MEGA board amended a prior agreement with the manufacturer of carbon composite automotive components. In December 2010, the company received a MEGA tax credit valued at $697,007 over seven years to invest $3.2 million to open a Customer and Technical Development Center in Wixom. The company now has the opportunity to bring 202 additional direct jobs to the state through the establishment of a class A automotive carbon fiber body panel and manufacturing facility to be located in the City of Walker. For the manufacturing portion of the credit, the company plans to invest approximately $18 million. Based on these factors, the High Technology MEGA tax credit has been amended to encompass both the technical center in Wixom and the manufacturing facility in Walker in a five year credit valued at $4,703,785. http://www.plasancarbon.com/home/
Science Applications International Corporation (SAIC) – The scientific, engineering and technology applications company has teamed with The Boeing Company and two German defense firms to bid on the first of three phases of a new Ground Combat Vehicle contract with the United States Army. If the bid is successful, the company plans to invest approximately $805,000 to house a production facility in Livonia. The company expects the project to create up to 50 direct new jobs, resulting in a state tax credit valued at $589,703 for two years. Michigan was chosen over other competing sites in the Southeastern US. The City of Livonia is supportive of this project and anticipates the approval of tax abatements for to the project. www.saic.com.
East Jefferson Neighborhood Project – A state brownfield credit valued at $2,521,517 and state and local tax capture valued at $385,578 will support the redevelopment of two vacant, multi-level buildings spread across four parcels in the city of Detroit. The two existing buildings will be connected and renovated into an affordable assisted living facility, licensed nursing home apartments and a neighborhood café. The project is expected to create up to 150 permanent full-time jobs, with a total capital investment of approximately $35 million.
Former Gas Station Project – The Detroit Brownfield Redevelopment Authority will use local and school tax capture valued at $301,132 to redevelop a vacant gas station and auto service building on W. Seven Mile into a Family Dollar retail store in Detroit. The project is expected to generate $1.4 million in new investment and create up to 15 permanent full-time jobs.
Grand Traverse Commons and the Village at Grand Traverse Commons Project – The original Brownfield and Work Plan approved by MEGA in December 2002 authorized local and school tax capture for $4,476,933 to redevelop the former state psychiatric hospital located in Traverse City into a series of projects that would result in a unique, mixed-use “village” of private residential and public commercial and retail uses. The Grand Traverse Brownfield Redevelopment Authority has submitted a request for approval to increase local and school tax capture costs by $19,962,292 and recognize the expansion of the Brownfield Plan boundaries. An additional 610 direct new jobs are expected to be created by the future commercial and retail portions of the project. The total capital investment will be approximately $124 million for the overall project.
Packard Square Redevelopment Project – The Washtenaw County Brownfield Redevelopment Authority will use local and school tax capture valued at $2,067,973 to support the demolition of three vacant one-story buildings and the construction of a four-story mixed-use retail and residential building on Packard Street in the city of Ann Arbor. The project includes approximately 21,000 square feet of commercial space and 230 apartments that will be located above and behind the retail space. The project is expected to create up to 45 new jobs with a total capital investment of approximately $49 million.
Former Wyandotte Police Station Redevelopment Project – Local and school tax capture valued at $210,752 will support the redevelopment of a vacant former police station and courthouse building into a medical office building in Wyandotte. The project is expected to create up to 70 new jobs with a total capital investment of approximately $2 million.
For the year to date, the MEGA board has approved agreements to assist the expansion of 46 companies that are projected to invest nearly $1 billion and create or retain approximately 11,695 direct jobs. It has also approved 14 brownfield redevelopment projects with projected new investment of more than $721.5 million.
The Michigan Economic Growth Authority (MEGA) may, under statute, provide a refundable tax credit against the Michigan Business Tax (MBT) to companies expanding or relocating their operations in Michigan. Tax credit agreements, awarded on the basis of the company’s strength of project, program guidelines and MEGA board approval, are earned over time by a company’s performance in meeting specified investment and hiring requirements.
The MEGA board is also empowered under statute to award Brownfield Redevelopment tax credits to support new business expansion projects on property that is contaminated, blighted or functionally obsolete.
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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