Wednesday, June 30, 2004
State Incentives Spur Expansion, 400 New Jobs
Choosing Michigan over Ohio, Dawn Food Products will create 400 jobs over the next 15 years by locating its world headquarters in Leoni Township, near Jackson. Partnerships between local units of government and the state again proved successful in expanding a business and bringing new jobs to Michigan, said Governor Jennifer M. Granholm who was in Jackson for the company's groundbreaking ceremony Wednesday.
"This project illustrates, once again, that we are willing to go the extra mile to create new jobs in Michigan," Granholm said. "Our plan for economic growth in Michigan is focused on working with local government to help businesses that want to grow and succeed here. Dawn Foods has a proud history in our state, and it is a legacy we will build upon at this new corporate headquarters in Jackson County."
In her 2004 State of the State address, Governor Granholm announced a focused seven-point plan for making Michigan a global economic powerhouse in the 21st century. So far this year, the Governor and the MEDC have announced the creation or retention of more than 17,000 jobs as a result of targeted assistance provided by the MEDC.
Assistance from the Michigan Economic Development Corporation (MEDC) helped convince the company to choose the vacant Jacobson's corporate office building for the project. It is expected to generate $12 million in private investment. Dawn had considered locating the project at a competing site in northwest Ohio. However, a Single Business Tax credit offered by the MEDC and worth more than $1.9 million over the next 15 years convinced the company to stay and grow in Michigan.
Leoni Township approved a 50 percent abatement of the company's new real and personal property tax valued at approximately $529,200 over the next 12 years to further support the project.
A University of Michigan economic analysis estimates that 291 indirect Michigan jobs will be created as a result of increased economic activity associated with the expansion, in addition to the 110 jobs created directly by the company. The project is expected to generate more than $259 million in personal income for Michigan workers over the life of the tax credit.
"This project is a two-fold winner," said MEDC President and CEO Don Jakeway. "Not only will good-paying jobs be created but thanks to the collaborative efforts of our local partners, the building will be reutilized, turning an economic disappointment into a new opportunity for growth."
Dawn Food Products manufactures and distributes high-quality baking supplies including ready-to-bake and ready-to-sell products to the baking industry worldwide. A wholly owned subsidiary of Dawn Foods, one of the worlds largest full service, family-owned baking industry suppliers, the company is headquartered in Jackson and currently employs 274 workers in Michigan
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.