Major Expansion Possibilities Open for Ann Arbor Laboratories
Governor John Engler today announced that Pfizer Inc plans to invest $600-800 million in expanding its Ann Arbor Laboratories within the next six years as a result of securing suitable land and state and local incentives.
“Two years ago we launched the Michigan Life Sciences Corridor initiative with the vision of being one of the nation’s premier life sciences centers,” Engler said. “Today’s announcement by Pfizer is a welcome confirmation that Michigan is attracting the important companies and investments that will make the Life Sciences Corridor vision a reality.”
Michigan had been competing with other states to win Pfizer’s investment. The company was attracted to Michigan by the state’s life sciences research institutions, existing company assets here and the ability to attract and retain high-tech employees.
A 20-year Single Business Tax (SBT) credit awarded to the company by the Michigan Economic Development Corporation this morning was a major factor in securing Pfizer’s expansion commitment.
“This is a win-win-win solution that will benefit the state, the city of Ann Arbor and Pfizer,” said David Canter, Pfizer senior vice president and director, Ann Arbor Laboratories. “Pfizer now will have the land we need to flourish. This will bring the city of Ann Arbor and the state of Michigan economic growth and new jobs in the research and development sector, strengthening the Michigan Life Sciences Corridor initiative.This success was made possible by the vision and commitment of many people, in particular Governor Engler, the Michigan Economic Development Corporation, the University of Michigan and the city of Ann Arbor.”
According to an economic analysis conducted by the University of Michigan, it is estimated Pfizer’s projected investments will generate a total of 988 jobs in the state by the year 2021, including 600 directly by the company. Total net state revenues are projected to increase by $89.3 million due to Pfizer’s investment. The SBT credit will be worth an estimated $25.8 million over the next 20 years.
In addition to the SBT credit, the state is granting an abatement of the six-mill State Education Tax for 12 years valued at $10.7 million. The city of Ann Arbor last night approved a property tax abatement for Pfizer.
“This opens what should be a great new chapter in our ongoing partnership with Pfizer,” said Ann Arbor Mayor John Hieftje. “The future of life sciences research in our city is brighter than ever before.”
The University of Michigan recently agreed to sell 55 acres of land near the school’s North Campus to Pfizer for future expansion. Any new laboratories built by Pfizer will help the company to continue developing cutting-edge products for its worldwide market. University President Lee C. Bollinger noted that the school is anticipating useful collaboration with Pfizer’s new scientists and researchers.
“The University of Michigan is committed to life sciences developmentserving our state and our world,” said Bollinger. “We were pleased to work with Pfizer in its purchase of the land that will enable the company’s expansion.We look forward to future collaboration that will bring promising research and scientific discovery, career opportunities for our graduates, and technology transfer initiatives benefiting the state's economy and the well-being of its residents.”
Pfizer Inc discovers, develops, manufactures and markets leading prescription medicines, for humans and animals, and many of the world’s best-known consumer products.
Governor Engler and the state Legislature created the Michigan Life Sciences Corridor initiative in 1999 to attract and expand the research, development and commercialization of biotechnology applications in Michigan. The state has committed to investing $1 billion over 20 years to encourage development of new life sciences technologies. The initiative is administered by the Michigan Economic Development Corporation.
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
(All estimates in 2001 dollars)
|TOTAL JOBS CREATED||988|
|NET POSITIVE STATE REVENUE IMPACT||$89,317,000|
Personal Income Generated Over Life of the Tax Credit Agreement
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