LANSING – It’s rather quiet in Michigan’s Capitol with most lawmakers attending the National Conference of State Legislatures (NCSL) Summit in Philadelphia, but they are getting some good information.
On the heels of a budget proposal by the House Republicans that is nothing more than a PR move they can roll out for next year’s campaign that eliminates state spending on college scholarships, cuts welfare payments and cuts K-12 education funding by $100 per pupil, an economic panel on Wednesday said cutting state spending and pink-slipping employees could make the recession worse.
According to subscription only MIRS, David Wyss of Standard and Poor's, said the country is in the longest recession since the Great Depression. David Cohen of Comcast Corp. said that the recession's pressure on state and local governments means big budget cuts, which can worsen the downturn.
The Bush recession has led to people simply not buying new cars and other large purchases causing huge jobs losses for the auto industry - Michigan’s' largest employer by far - that has caused as huge ripple effect in the state. It is against that back drop of bad news that Gov. Jennifer Granholm announced on Tuesday that the Michigan Economic Development Corporation (MEDC) is helping seven companies grow in Michigan and is backing one alternative energy brownfield redevelopment project. Combined, the eight projects are expected to create 6,372 new jobs, retain 8,586 jobs and generate over $349.5 million in new investment in the state.
“Our aggressive economic strategy – combined with our competitive business climate and outstanding workforce – continues to generate new corporate investment and new expansion projects in Michigan despite a national recession,” Granholm said. “The projects announced today are the types of projects that will transform our economy and create good-paying jobs for our workers.”
The Michigan Economic Growth Authority (MEGA) board today approved state tax credits to win the following projects for Michigan over competing states and countries:
• Magna Seating – The automotive supplier of complete seat solutions and seat mechanisms plans to invest $18 million in a multi-product facility in Highland Park. The project will create 1,414 new jobs, including 420 directly by the company. The MEDC estimates increased economic activity created by the project will create an additional 994 indirect jobs. Based on the MEDC’s recommendation, the MEGA board today approved a state tax credit valued at $4.5 million over seven years to help convince the company to locate in Michigan. The city of Highland Park is considering abatement valued at $1.5 million in support of the project.
http://www.magnasteyr.com/xchg/complete_vehicle/XSL/standard.xsl/-/content/903_905.html
• Attwood Corporation – The marine parts and accessories supplier plans to consolidate the MotorGuide operations based in Tulsa, Oklahoma, to its headquarters in Lowell. Both companies are divisions of Mercury Marine. This will be the second business consolidation in as many years for Attwood, with the previous consolidation of its Lancaster, Texas, operations to Lowell after the company received a MEGA credit in July 2008. The company plans to invest $2 million in the project, which will create 92 new jobs, including 51 directly by the company. The MEDC estimates increased economic activity created by the project will create an additional 41 indirect jobs. Based on the MEDC’s recommendation, the MEGA board today approved a state tax credit valued at $483,026 over seven years to help convince the company to expand in Michigan over competing sites in Georgia, Oklahoma, Wisconsin and Mexico. The city of Lowell is considering a 12-year abatement to support the project.http://www.attwoodmarine.com/
• AVL Powertrain Engineering Inc. – The powertrain research and development company plans to invest $2.6 million to create a hybrid and alternative fuel development center in Ann Arbor to develop powertrains for electric vehicles. The project will create 76 total jobs, including 40 directly by the company. The MEDC estimates the increased economic activity created by the project will create an additional 36 indirect jobs. Based on the MEDC’s recommendation, the MEGA board today approved a state tax credit valued at $298,559 over five years to encourage the company to expand in Michigan over a competing site in California. The city of Ann Arbor is considering an abatement to support the project. http://www.avl.com/wo/webobsession.servlet.go?app=bcms&page=view&nodeid=400012976
• Molded Materials Inc. – The 40-year-old Michigan company that designs and manufactures tooling and molded composite components for the automotive, life sciences, defense and heavy truck industries plans to invest $2.9 million to consolidate its Plymouth operations to a new facility in Saline. The project is expected to create 69 new jobs, including 29 directly by the company. The MEDC estimates the increased economic activity created by the project could also create an additional 40 indirect jobs. Based on the MEDC’s recommendation, the MEGA board today approved a state tax credit valued at $420,388 over seven years to help convince the company to expand in Michigan over a competing site in Ohio. A tax abatement is also expected from the city of Saline to help this industry grow in Michigan. http://moldedmaterials.com/home.html
• Ventral Ionia – The producer of plastics, metals and mechanical assemblies for the automotive industry plans to invest $42 million to acquire four former Meridian Automotive facilities located in Ionia, Fowlerville and two in Kentwood. The project is expected to retain 3,126 jobs, including 934 directly by the company. The MEDC estimates the increased economic activity created by the project will retain an additional 2,192 indirect jobs. Based on the MEDC’s recommendation, the MEGA board today approved a state tax credit valued at $4.6 million over six years. The cities of Ionia, Fowlerville and Kentwood plan to support the project. http://www.flex-n-gate.com/
• Quicken Loans Inc. – The nation’s largest online lender and fifth largest retail mortgage lender in the United States plans to relocate its headquarters to Detroit, consolidating its executive, management, loan production, title production and administrative functions. The company plans to invest $240 million in the project, which will create 4,019 jobs, including 1,800 directly by the company. The MEDC estimates the increased economic activity created by the project will create an additional 2,219 indirect jobs. The project also is expected to retain 4,967 jobs, including 2,200 directly at the company and an additional 2,767 indirect jobs. Based on the MEDC’s recommendation, the MEGA board today approved a state tax credit valued at $18.1 million over 12 years to help win the project for Michigan over a competing site in Ohio. The MEGA board also approved a $29.1 million retention credit over 12 years to keep jobs in Michigan. The city of Detroit is considering local incentives to support the project. https://www.quickenloans.com/
• Continental Automotive Systems Holding US Inc. – State incentives have been approved to encourage the company to expand operations in Auburn Hills. The proposed $26.9 million project, pending company approval, is expected to create up to 230 new direct jobs. The MEDC estimates the increased economic activity created by the project will create an additional 322 indirect jobs. Based on the MEDC’s recommendation, the MEGA board today approved a 10-year state tax credit valued at $14.1 million to help convince the company to create new jobs in Michigan. In addition, the MEGA board approved a 10-year state tax credit valued at $10.3 million to encourage the company to retain approximately 225 Continental jobs and 268 indirect jobs in Michigan. The city of Auburn Hills is considering an abatement to support the project.http://www.conti-online.com/generator/www/de/en/cas/cas/general/home/index_en.html
• Whitehall Township – State and local tax capture valued at $491,767 will support the redevelopment of the former Muskegon County Whitehall-Montague wastewater treatment plant. The developer will incorporate a number of activities, ranging from agriculture feedstock to cellulosic ethanol production to a recycling center and recreation areas. The energy produced at the site will be used to power the ethanol operations and other facilities on the property. The project will generate $13.3 million in new capital investment and is expected to create up to 150 new jobs.
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