Tuesday, October 14, 2003
Brownfield Redevelopment Project to Create 486 New Jobs
Governor Jennifer M. Granholm announced today that the Michigan Economic Development Corporation (MEDC) has offered assistance to help redevelop the former site of the General Motors’ Nodular Iron plant. The project is expected to generate $60 million in private investment and create 486 new jobs.
“Reclaiming brownfields in Michigan is important to the ongoing economic success of our core communities,” Granholm said. “This project will create vital manufacturing jobs and make it possible to revitalize an obsolete property making Saginaw a magnet for future development.”
Brownfield Single Business Tax credits totaling more than $4.4 million will be utilized to redevelop the currently idle General Motors Nodular Iron plant site in the city of Saginaw. Corvus Nodular Interests, LLC, will develop the project that will include the construction of up to 240,000 square-foot finishing and machining facility.
Upon completion, four automotive suppliers will locate within the facility, which will service and supply the existing Saginaw Metal Casting Operation. The $60 million project is expected to create 486 new jobs by the year 2014.
A site in Ontario, Canada was considered for the project, but the credits convinced the developer and the suppliers, B & W of Michigan, CMI-Schneible Company, Enterprise Automotive Systems and Michigan Production Machining, to stay in Michigan.
Due to job creation, three of the suppliers, CMI-Schneible Company, Enterprise Automotive Systems and Michigan Production Machining, received approval for Single Business Tax credits. These credits are valued at $1.2 million over a 10-year period. It is expected that 144 jobs will be created directly by the suppliers.
According to an economic analysis conducted by the University of Michigan, it is estimated that the total project will result in a net positive state impact of more than $11.9 million generating $228 million in personal income for Michigan residents over the life of the tax credits.
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.
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