©2018 Michigan Economic Development Corporation

Michigan Economic Development Corporation Helps Secure Manufacturing Tradition in Battle Creek

Monday, September 17, 2001

Jennifer Kopp

Brownfield Tax Credit Awarded to Kraft Foods

Brownfield Tax Credit Awarded to Kraft Foods

The Michigan Economic Development Corporation (MEDC) awarded a brownfield Single Business Tax credit to Kraft Foods North America today for investments to be made in the Battle Creek Post cereals facility today.The tax credit will assist in upgrading the existing facility that has been in operation in Battle Creek since 1895.

The $76.2 million investment by Kraft will include building reconstruction and renovation, site infrastructure improvements and the purchase of new, more efficient manufacturing equipment.

“Kraft Food’s decision to reinvest in the original facility is great news to the City of Battle Creek and essential to the city’s long term economic development plans,” said Doug Rothwell, president & CEO of the Michigan Economic Development Corporation.“This is a win-win situation, the tax credit awarded today will help upgrade obsolete buildings at the Post complex and keep good jobs in one of Michigan’s core communities.”

A brownfield Single Business Tax Credit valued at up to $7.6 million for 10 percent of the eligible investment in the Kraft Foods expansion was approved today.

The Battle Creek Brownfield Development Authority also authorized $1.5 million in tax increment financing.The City of Battle Creek will offer a 12-year, 50 percent abatement of all planned investment by Kraft.

“I am very pleased that Kraft Foods, one of our community’s largest employers, is considering such a huge capital investment in it’s Post Cereal Operations in Battle Creek, “ stated Battle Creek Mayor Mark Behnke.“With other Kraft Foods facilities across the country competing increasingly for company-wide capital investment projects and product lines, all those involved with this project have understood the need for us to be aggressive in our approach to assist the company.”

The Kraft Foods Battle Creek facility is the largest ready-to-eat cereal manufacturing plant in the world.It has survived while newer facilities in other states have been constructed with newer equipment and more efficient structural designs.C.W. Post founded this facility, the oldest of Post Cereals facilities in North America.

“Our Battle Creek plant faces an immediate challenge: to make ourselves more competitive by achieving aggressive cost reductions and positioning ourselves for the future,” said Luis Viso, Plant Manager, Kraft - Battle Creek and Regional Manufacturing Director for Kraft South/Great Lakes Area.“Qualifying for these credits will help us take a giant step toward meeting that challenge.We deeply appreciate the support demonstrated by the Battle Creek community, city government, Battle Creek Unlimited, our elected state officials and the Michigan Economic Development Corporation throughout this process.”

This Single Business Tax Credit was approved under a recent amendment to the brownfield Redevelopment Financing Act.This amendment increases the maximum Single Business Tax credit and allows the credit to be given to functionally obsolete, blighted or contaminated property in 88 core communities.

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.