Tuesday, October 17, 2006
Michael Shore, MEDC
Companies Investing Nearly $1 Billion in Michigan
The 14 projects announced today:
- AG Simpson Automotive Systemsplans to invest in capital and equipment to expand its automotive parts assembly and other manufacturing capabilities by reopening a facility in Sterling Heights. The project will create 242 new jobs, including 130 directly by the company. A Single Business Tax (SBT) credit valued at more than $576,000 over six years helped convince the company to choose Michigan over competing international sites. The city of Sterling Heights has approved a nine-year tax abatement worth $357,000 to support the project.
- American Litho Inc., a subsidiary of Konica Minolta Graphic Imaging USA, Inc. (KMGI)will institute a new production line in Kentwood by investing $13.5 million over and above the $22 million already invested. Michigan beat Pennsylvania for the project which is expected to create 327 jobs, including 163 directly by the company. In addition, KMGI will be relocating its corporate headquarters to 5800 Foremost Drive. The city of Kentwood is considering a 12-year tax abatement worth $800,000 to support the project. Konica Minolta Graphic Imaging USA is a wholly owned subsidiary of Konica Minolta Holdings, Inc. Konica Minolta Holdings, Inc. was among 12 companies Governor Granholm received commitments from while on an investment mission in Japan in May 2006.
- BASF Corporationplans to invest $150 million to relocate its R&D, administrative and manufacturing operations to Wyandotte from Wisconsin. The new facility is expected to create 648 new Michigan jobs, including 175 directly by the company. An employment Single Business Tax credit valued at $5.5 million over 10 years and a brownfield Single Business Tax credit worth $15 million helped convince the company to grow in Michigan instead of at a competing site in Tennessee. The city of Wyandotte is also considering local tax abatements totaling approximately $35 million over 20 years to support the project.
- Backyard Storage Solutions LLCwill invest more than $5 million to open a new manufacturing, distribution and administrative facility in Monroe
- Karmann Manufacturing LLCwill invest $22 million in its Plymouth facility. The expansion is expected to create 735 new Michigan jobs, including 375 directly by the company. A Single Business Tax credit valued at more than $4.1 million over 10 years and a $212,500 Economic Development Job Training grant helped convince the company to grow in Michigan instead of at a competing site in Tennessee. Plymouth Township has approved a 10-year tax abatement valued at approximately $261,000 to support the project.
- PureFlex Inc.Kentwood is considering tax abatements worth $1 million to support the project. The company had also considered a competing site in Williamsburg, South Carolina for the project. PureFlex manufactures high-purity hose, fittings and advanced composite valves for the biopharmaceutical and chemical industries.
- Ryder Integrated Logistics Inc.is considering consolidating logistics operations in Novi
- Siemens VDO Automotive Corporationplans to invest between $50-60 million to consolidate operations and establish one North American headquarters location in Auburn Hills, including a vehicle and application engineering facility and test labs. The project, pending Siemens VDO Board approval, is expected to create and retain up to 2,851 jobs, including up to 1,100 directly by various Siemens operating companies. A Single Business Tax credit valued at more than $27.2 million over 10 years helped convince the company to consolidate in Michigan instead of a competing out-of-state site. The city of Auburn Hills has proposed an eight-year tax abatement valued at approximately $1.5 million to support the project.
- Greenleaf Holdings 3 LLCwill use alocated at 130 and 140 West South Streetin downtown Kalamazoo
- Woodard Station Lofts LLCwill utilize state and local tax capture valued at $2.5 million and a brownfield SBT credit valued at $1.1 million to help redevelop the former Woodard Furniture manufacturing building in Owosso into a mixed-use development with condos and retail/office space. The developer will invest $17.5 million in the project which is expected to create 35 new jobs.
- Central Brush Park LLC and 3100 Woodward LLCDetroit
- City of Flintwill utilize state and local tax capture valued at $304,070 to help transform the former Berridge Hotel in downtown Flint
- City of Lansingwill use state and local tax capture valued at $919,500 to help Demmer Corporation expand its manufacturing and logistical operations at the former Motor Wheel plant in Lansing
- BerrienCountywill use state and local tax capture valued at more than $95.3 million to help advance the Harbor Shores redevelopment project in BerrienCounty. On October 18, 2005, state and local tax capture worth $12.4 million was approved for the initial phases of the project. Since then, several project phases have been clarified and additional property has been added. The mixed-use development will include housing, hotels, a water park, golf course and retail/commercial opportunities. The project is expected to include more than $500 million in private investment and create 2,000 new jobs.