Governor John Engler announced that Four Winns Boats, LLC, a subsidiary of JTC Acquisition, LLC (JTC), will grow in Cadillac with the help of a Michigan Economic Development Corporation (MEDC) incentive package.The MEDC was able to secure the project by making a competitive business case for the company to expand in Michigan with a Single Business Tax credit.
Four Winns Boats closed its operations in Cadillac in December of 2000 after its parent company, Outboard Marine Corporation, filed for Chapter 11 bankruptcy.In March, JTC, an affiliated arm of Genmar Holdings, Inc., purchased Four Winns Boats.The 358,000 square-foot facility was reopened at that time in order to meet dealer inventory needs for the approaching spring season.JTC Acquisition is a single member company of Jacobs Trading Company.
The Cadillac site was chosen for the Four Winns expansion rather than moving the facility to Sarasota, Florida.It is estimated that this expansion will create 1,424 new jobs, 900 directly by the company, for Michigan workers.
“The announcement of Four Winns’ closure in December was devastating news to Cadillac,” said Engler.“However, our Single Business Tax credit, combined with the city of Cadillac’s local assistance, successfully convinced Four Winns’ new owners to remain in Cadillac rather than pulling up stakes and moving operations out of state.”
JTC intends on investing about $17.6 million, including building and equipment costs.JTC Acquisition pointed to the established dealer network in the Midwest and experienced workforce as reasons why Cadillac was chosen for the expansion.
“We are pleased with JTC Acquisition’s decision to keep the facility in Cadillac.Four Winns has built a solid relationship with the Cadillac community overthe past 26 years, and we look forward to continuing this relationship,” said John Anderson, president of Four Winns Boats. “More than 300 workers currently employed at Four Winns possess over 10 years with the company,” said Anderson. “This is a very experienced workforce, and a key reason we like being in Cadillac.”
A key feature of the MEDC incentive package is a Single Business Tax credit worth an estimated $11.3 million over the next 12 years. The package also includes an Economic Development Job Training grant of up to $550,000 to train new employees.The MEDC also offered an abatement of the six-mill State Education Tax valued at $164,610.
The city of Cadillac is prepared to provide an abatement of the personal property tax for 12 years on all new equipment purchased.The city is also ready to transfer the existing real and personal property tax abatements to Four Winns Boat.The value of these anticipated abatements is $748,695.
Cadillac Mayor Ronald Blanchard stated that the city of Cadillac was extremely pleased with the decision to keep Four Winns in Cadillac.“Many parties spent a considerable amount of time and effort to make this happen, and we are very excited to partner with the company and the state of Michigan to allow for the retention and expansion of one of our most valuable employers.”
Based on estimates by the University of Michigan, this project will provide more than $69 million in revenue to the state over the life of the agreement, resulting in a net positive gain for the state of more than $57 million, after the tax credit.The project is expected to generate more than $862 million in personal income during that time.
The Michigan Economic Development Corporation, a partnership between the state and local communities, promotes smart economic growth by developing strategies and providing services to create and retain good jobs and a high quality of life.
Four Winns Boats, LLC
(All estimates in 2001 dollars)
TOTAL JOBS CREATED
|NET POSITIVE STATE REVENUE IMPACT|
Personal Income Generated Over Life of MEGA Agreement
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