Tuesday, February 15, 2005
Michael Shore, MEDC
25,441 Jobs Secured as Companies Choose Michigan Over Other Locations
Governor Jennifer M. Granholm today announced four company expansions and three brownfield redevelopment projects that are expected to create and retain more than 25,441 jobs and generate more than $894 million in private investment, all as a result of assistance offered by the Michigan Economic Development Corporation (MEDC).
"It is great news that these companies are all prospering here and will soon add new job opportunities for Michigan families," Granholm said. "At the same time, we are encouraging developers to transform some of the state's problem properties to make them both economically viable again and aesthetically pleasing to their neighbors."
The seven projects are expected to create and retain 7,003 jobs directly with an additional 18,438 indirect jobs resulting from increased economic activity associated with the company expansions, according to an economic analysis provided by the University of Michigan.
DaimlerChrysler Corporation is considering a multi-million dollar investment to retool and improve its stamping and assembly operations in Sterling Heights instead of other competing sites in North America. The MEDC approved a Single Business Tax credit valued at approximately $18.8 million as well as an Economic Development Job Training grant valued at $500,000 to convince the global automaker to invest in Michigan, resulting in the retention of 20,782 jobs.
Detroit Diesel Corporation and the Freightliner LLC Group are considering a major investment to transform the 65-year-old Redford Township plant into a "manufacturing (center) mall" to produce a range of commercial vehicle components for the North American market. An incentive package including an SBT credit valued at approximately $9.1 million as well as $143,000 in Economic Development Job Training funding was offered to convince the company to expand in Michigan over a competing site in South Carolina. The project could create and retain a total of 2,928 Michigan jobs.
Metaldyne plans an $8.l million expansion of its Middleville facility to accommodate the manufacture of a key aluminum part for the new six-speed transmission to be used by two North American automakers. The project is expected to create 92 jobs, including 64 directly by the company. An SBT credit valued at approximately $670,000 as well as an Economic Development Job Training grant of up to $32,000 helped convince the company to expand in Michigan instead of a competing location in Ohio.
Quicken Loans Inc./Rock Financial, a leading nationwide mortgage lender, plans to expand its Livonia headquarters and create 1,555 new jobs, including 500 directly by the company. A Single Business Tax credit valued at approximately $6.8 million helped convince the company to invest $11 million in its existing Livonia facility and in a new additional site in Livonia, instead of a competing location in Nevada.
Detroit: MOT, LLC (Michigan Opera Theater) will use a tax credit valued at more than $1.5 million to help demolish and rebuild a blighted parking structure it recently acquired. The new 783-space facility will also include 20,000 square feet of retail and office space along Broadway Avenue in Detroit's central business district. The parking structure will be completed on October 1, 2005 and the commercial space is expected to be finished by December 2005 in time for the Super Bowl. MOT will invest $20 million in the project, which is expected to create 54 new jobs.
Detroit: Scripps Park Associates, LLC in partnership with the city of Detroit and the Detroit Housing Commission will invest approximately $60 million to redevelop the former Jeffries Homes public housing site located near the intersection of West Forest Avenue and the Lodge Freeway. Part of the site has already been redeveloped into rental units; the remainder of the site is tax-reverted. An SBT credit valued at $1.5 million will support phase two of the project, which involves the construction of 98 residential units. The new development will be known as Woodbridge Estates.
Holland: Baker Lofts LLC will use a $1.4 million brownfield SBT credit and state and local tax capture valued at more than $2 million to redevelop the former Baker Furniture manufacturing facility. The developer will invest $14 million to renovate and restore the historic 220,000-square-foot building located at the corner of Columbia Avenue and East 24th Street. Approximately 40,000 square feet will be dedicated to commercial/retail uses, and the remaining space converted into 160 residential rental units. The project is expected to create 30 new jobs.
"These are great projects that will generate tremendous benefits, directly and indirectly, for the people of Michigan," MEDC President and CEO Don Jakeway said.
In her 2005 State of the State address, Granholm emphasized the importance of making Michigan a global economic powerhouse in the 21st century. In the past 12 months the Governor announced the creation or retention of more than 80,423 jobs as a result of targeted assistance provided by the MEDC.
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.