The Michigan Economic Development Corporation today announced Michigan Strategic Fund approval of a number of significant items
LANSING– The Michigan Economic Development Corporation today announced Michigan Strategic Fund approval of a number of significant items, including the designation of the first Center of Innovation in Michigan, renewal of the State Trade and Export Program, Entrepreneurial Service Provider Request for Proposals awards, a Michigan Business Development Program incentive, a General Motors MEGA amendment and a brownfield work plan approval.
“The Michigan Strategic Fund approved a wide range of projects today, from Michigan’s first Center of Innovation to export assistance for Michigan companies to a business expansion in Holland, that will promote greater economic opportunities for our businesses and citizens,” said MEDC President and CEO Michael A. Finney. “Today’s actions demonstrate how we have greatly improved Michigan’s business climate and infrastructure, leading to more jobs and better lives for our residents.”
Entrepreneurial Service Provider Request for Proposals awards – On August 22 the MSF approved an allocation of $5.25 million for the Entrepreneurial Services Program and issued a Request for Proposals, which sought applications from nonprofit organizations and universities in Michigan to provide specialized support services to assist entrepreneurs in launching and growing high-tech companies throughout the state. The MSF today approved nine awards of the 24 proposals that were received:
General Motors MEGA amendment – General Motors, LLC’s recent and proposed growth is causing the company to near the 30,000 cap for retained jobs on their Global Retention MEGA Tax credit, approved by the Michigan Economic Growth Authority on June 25, 2009. As a result of this growth, MSF approved an increase in the maximum allowance for retained jobs on their Global Retention MEGA tax credit from 30,000 to 33,000. In addition, the company received amendments to the Global retention MEGA tax credit, the Plug-In Electric Vehicle Engineering Credit, and the Amendment to Plug-In Battery Pack Credit to simplify, clarify, and enhance the credit agreements.
Magna Sealing and Glass Systems, a manufacturing division of Magna Exteriors and Interiors, designs, develops and manufactures advanced automotive components. Magna Sealing and Glass plans to invest up to $10.1 million to expand its Holland Charter Township operations to develop, test and commercialize a new sunroof technology for the automobile industry, in addition to other new technologies to be applied to automotive glass. The company anticipates the project will create approximately 177 new jobs over the new-product development period, resulting in a performance-based Business Development Incentive of $1.2 million. Michigan was chosen over competing sites, and Holland Charter Township has offered support to the project in the form of a 12-year tax abatement.
SRI International Center of Innovation – In July the MSF authorized $7 million for the Centers of Innovation program to promote the development, acceleration and sustainability of competitive edge technology sectors in the state. The Michigan Strategic Fund today approved the first Center of Innovation designation and $5 million in funding for the Biosciences Division of SRI International, a Menlo, CA-based independent, nonprofit research institute. SRI will establish a pre-clinical and clinical trial service facility at the Michigan Life Science and Innovation Center in Plymouth for the purpose of accelerating SRI technologies and technologies from biotech companies, universities and hospitals to development and commercialization. The MSF will receive a portion of royalties and equity if new SRI technologies originate predominantly from the facility.
State Trade and Export Promotion program (STEP) –The MSF approved a second year of funding for MEDC to providefinancial assistance for export-related activities to Michigan companies with fewer than 500 employees. The funds are being awarded through a $2.2 million federal export award to the State of Michigan under the U.S. Small Business Administration State Trade and Export Promotion program. The SBA STEP grant program provides direct reimbursements to qualified companies with fewer than 500 employees for export-related activities, ranging from free or low-cost export training and technical counseling to participation fees for international trade missions. State project award amounts vary based on the proposed project plan and budget. Michigan received the second largest award in the country.
618 South Main Project – The Washtenaw County Brownfield Redevelopment Authority will use MEGA school and local tax capture valued at $2.9 million to redevelop a contaminated property into a six to seven story residential building that will be specifically targeted to young professionals. The 150-170 units will be comprised of loft-style studio, one- and two-bedroom apartments, many with balconies or porches. The project is expected to generate approximately $32.9 million in new investment and create six full time jobs.
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.