MEDC: 2,912 Jobs, $113.6 Million Investment
Michigan Gov. Jennifer M. Granholm Tuesday announced that the Michigan Economic Development Corp. is helping nine companies grow in Michigan and backing two brownfield redevelopment projects. Combined, the 11 projects are expected to create and retain 2,912 jobs -- 1,258 directly by the projects involved -- and generate $113.6 million in new investment in the state.
"Our strategy to diversify and grow Michigan's economy continues to produce results for Michigan workers," Granholm said. "The range of companies investing and creating jobs in the state demonstrates that we have the competitive business climate and highly skilled workforce companies are looking for as they compete in the global economy."
The Michigan Economic Growth Authority board Tuesday approved incentives to win the following projects for Michigan over competing states and countries:
* Covenant Eyes Inc. -- The company, whose Internet accountability and filtering software helps people bridge the gap between technology and relationships, intends to continue expansion at its global headquarters office in Owosso. Due to growth in sales and the increasing need to keep up with technology changes, Covenant Eyes plans to invest $3.7 million over the next five years to expand the size of its team and increase office space to house the new employees. Based upon the anticipated hiring of up to 139 people, the MEDC estimates that the project has the potential to create an additional 238 indirect jobs. Based on the MEDC's recommendation, the MEGA board approved a state tax credit valued at $635,203 over five years to encourage the company to expand in Michigan instead of competing sites in Colorado and Texas. More at www.covenanteyes.com.
* General Electric Co. -- This diversified technology, media and financial services company formed in 1892 plans to invest more than $20 million to establish a new proprietary development and manufacturing process center in Van Buren Township. The project is expected to create up to 301 total jobs, including 130 directly at the company. The MEDC estimates the increased economic activity created by this program has the potential to create an additional 171 indirect jobs. Based on the MEDC's recommendation, the MEGA board approved a state tax credit valued at $2.3 million over 10 years to convince the company to expand in Michigan over competing sites at many of the company's other locations across the globe. The charter township of Van Buren is considering an abatement to support the project. More at www.ge.com.
* Gordon Food Service -- State brownfield tax credits valued at approximately $6 million will support the consolidation of the foodservice distributor's Canadian operations and restructure its Wyoming campus to increase efficiency and provide space for future growth. The project will redevelop four parcels on 50th Street, including the demolition of functionally obsolete structures, infrastructure improvements and the construction of a new 150,000-square-foot office building. The project will generate $24.2 million in private investment and is expected to create up to 173 new jobs and to retain 50 jobs. The city of Wyoming is considering an abatement with an estimated value of $75,000 in support of the project. http://www.gfs.com/en
* Hallite Seals Americas Inc. -- A high-performance sealing devices manufacturer to companies in the agriculture, marine, transportation, medical, alternative energy, construction, forestry, and mining markets plans to invest $7.4 million to expand its operations in Wixom. The project is expected to retain up to 152 total jobs, including 60 directly at the company. The MEDC estimates the increased economic activity created by the project has the potential to retain an additional 92 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $475,445 over five years to help convince the company to expand in Michigan over a competing site in Texas. The city of Wixom is considering an abatement in support of the project. More at www.hallite.com/index.asp.
* Kostal Kontakt Systeme Inc. -- The developer and manufacturer of electric components for a variety of industries, including components for renewable energy vehicles and hybrid vehicles, was founded as a separate legal U.S. entity in 2010 and belongs to Kostal Group -- an independent German family-owned business. The company plans to invest $27.1 million to relocate the existing production of its solar connector systems, used in the renewable energy sector, from Germany and Mexico to Rochester Hills. The company is expected to create up to 642 total jobs, including 247 directly by the company. The MEDC estimates the increased economic activity created by the project may create an additional 395 indirect jobs. Based on the MEDC's recommendation, the MEGA board approved a state tax credit valued at $3.9 million over seven years to convince the company to expand in Michigan over a competing site in Mexico. The city of Rochester Hills is considering an abatement of up to 12 years in support of the project. More at www.kostal.com/english/2-03-00-01.html.
* Link Engineering Co. -- A designer and manufacturer to the global transportation industry of advanced test equipment and provider of comprehensive engineering testing services, plans to invest $9.8 million to expand and consolidate test operations in Dearborn. The project is expected to create up to 112 total jobs, including 59 directly at the company. The MEDC estimates the increased economic activity created by the project has the potential to create an additional 53 indirect jobs. Based on the MEDC's recommendation, the MEGA board approved a state tax credit valued at $789,787 over seven years to convince the company to expand in Michigan over a competing site in Ohio. The city of Dearborn is considering an abatement in support of the project. More at www.linkeng.com.
* Metalsa Structural Products Inc. -- The supplier of structural components in the light and commercial vehicle markets plans to invest $1.9 million to relocate their global commercial and research and development operations to Novi. The project is expected to create up to 132 total jobs, including 65 directly at the company. The MEDC estimates the increased economic activity created by the project has the potential to create an additional 67 indirect jobs. Based on the MEDC's recommendation, the MEGA board approved a state tax credit valued at $1.9 million over seven years to convince the company to expand in Michigan. The city of Novi is considering local assistance in support of the project. More at www.metalsa.com/inicio.html.
* Premier Tool & Die Cast Corp. -- The global supplier of metal castings companies in the automotive, electronics, appliances, furniture, transportation and defense sectors plans to invest $3.2 million to establish a new zinc and aluminum die cast and assembly operation in Dowagiac. The project is expected to create up to 179 total jobs, including 100 directly at the company. The MEDC estimates the increased economic activity created by the project has the potential to create an additional 79 indirect jobs. Based on the MEDC's recommendation, the MEGA board approved a state tax credit valued at $862,227 over five years to convince the company to expand in Michigan over a competing site in New York. The city of Dowagiac is considering an abatement valued at approximately $4 million over 12 years in support of the project. More at www.premierdiecast.com.
* Wausaukee Composites -- The producer of fiberglass products and manufacturer of engineered composite components for the construction, agricultural equipment, medical, mass transportation and wind energy industries plans to invest $1.9 million to expand and renovate its existing facility and purchase a new facility, both in Owosso Charter Township. The project is expected to create up to 361 new jobs, including 156 directly at the company. The MEDC estimates increased economic activity created by the project has the potential to create an additional 205 indirect jobs. Based on the MEDC's recommendation, the MEGA board approved a state tax credit valued at $783,909 over five years to help convince the company to expand in Michigan. The charter township of Owosso is considering an abatement valued at up to $40,000 in support of the project. More at www.wauscomp.com.
* Wolverine Assemblies LLC -- The assembly company serving the automotive, heavy truck, defense, agriculture and health care markets plans to invest $8.4 million to establish a new operation in Wixom that will perform value-added assemblies, sub-assemblies, testing, sequencing and warehousing for various products. The project is expected to create up to 418 total jobs, including 174 directly at the company, some of which are coming from the company's Southeast Asia operations. The MEDC estimates the increased economic activity created by the project has the potential to create an additional 244 indirect jobs. Based on the MEDC's recommendation, the MEGA board approved a state tax credit valued at $785,166 over five years to encourage the company to expand in Michigan over competing sites in Ohio and Indiana. The city of Wixom has approved an abatement to support the project.
* City of Grand Rapids -- State and local tax capture valued at $561,700 will support a brownfield project to redevelop property at 248 Williams that will allow the Founders Brewing Company to expand its existing facilities. The project is expected to generate $6.6 million in new capital investment and create up to 15 new jobs.
The MEGA, the state's response to interstate competition for company expansions and relocations, may provide a refundable tax credit against the Michigan Business Tax to companies expanding or relocating their operations in Michigan. Since January, more than 67,000 new and retained jobs have been announced as a result of the MEGA program.
Michigan brownfield programs provide incentives to invest in property that has been used for industrial, commercial or residential purposes and to keep that property in productive use or return it to productive use. Brownfield incentives can be used for functionally obsolete, blighted or contaminated property.
For more information on the MEDC's initiatives and programs, visit www.MichiganAdvantage.org.
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