©2018 Michigan Economic Development Corporation

Michigan Economic Development Corporation Assistance Leads to $570 Million Energy Plant Investment in Niles

Wednesday, December 19, 2001

Jennifer Kopp

The Michigan Economic Development Corporation (MEDC) today announced that Indeck-Niles Energy Center, L.L.C. will invest more than $570 million to build a new 1,100-megawatt gas-fired electrical generation plant in Niles.

Upon completion, the state-of-the-art plant will supply 345 kilovolts (KV) of electricity to the American electrical power grid and create 209 jobs for Michigan workers.

“This project represents incredibly good news for Michigan on several fronts,” said Doug Rothwell, president and CEO of the Michigan Economic Development Corporation. “In addition to providing hundreds of good-paying jobs for families in the Niles area, this plant will generate clean power for businesses and households throughout Michigan.It will also mean that an unused, contaminated site will be transformed into something beneficial.”

The plant site chosen by the company has gone unused since the early 1950s due to heavy metals contamination from prior railroad use.As part of the project development, Indeck will spend more than $1.3 million to isolate and contain the contaminated soils.

“This project will help Indeck to meet its growth goals for the next several years, as well as provide for much needed asset diversification into a new electrical grid,” said Richard Robinson, Indeck’s manager of Business Development.“At the same time, the city of Niles will become the home of a highly efficient, clean, state-of-the-art electrical generating station that will provide tax revenue growth and high-paying jobs for the city.”

According to Robinson, the generation plant will utilize gas turbine technology, the most efficient and cleanest technology currently available for electricity generation.The company expects to invest more than $570 million to complete the plant.

The project is expected to create 209 new full time jobs in the state by the year 2004, with an average weekly wage of $962.

“Indeck’s power plant is becoming a reality in Niles due to the hard work and cooperation of the City of Niles, our local communities, Cass and Berrien Counties, the Michigan Economic Development Corporation, and many others,” said Sharon Witt, Executive Director of Southwestern Michigan Economic Growth Alliance.“This collaboration of efforts and visions continues the prosperity of Michigan by ensuring sufficient energy resources for our future.”

To encourage Indeck’s investment, a $1.3 million brownfield tax credit was approved by the MEDC today.The MEDC will also provide Indeck with a three-mill State Education Tax Abatement valued at $9.1 million. The city of Niles has offered the company a 12-year abatement worth $6 million.

Recent amendments to the Brownfield Redevelopment Financing Act allow a brownfield authority to capture property taxes for an expanded set of activities, including infrastructure improvements, demolition of structures and site preparation.The Niles Brownfield Redevelopment Authority has authorized $300,000 in tax increment financing for the Indeck project.

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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