Metro Detroit firms rack up $327M in MEDC deals

Thursday, June 17, 2010 | Source: metromode

Metro Detroit companies took the vast majority of the latest round of job-creating tax deals from the Michigan Economic Development Corp, which means $327 million in new investments and 805 new jobs in the next few years.

The tax breaks span a number of different sectors, including traditional automotive in Redford Township, new age tech companies in Southfield, along with Internet and bio-tech firms in Ann Arbor. All of them worked through local and state economic development agencies to come up with the best solution to expand their businesses in southeast Michigan.

"They both did a very good job of helping us understand the benefits of growing here in Ann Arbor," says Scott Robertson, managing partner of Grand River, which plans to invest $1 million into expanding its Ann Arbor office.

The biggest investments are coming from automotive firms.

Detroit Diesel, a heavy-duty diesel engine manufacturer, plans to invest $194 million to expand its Redford Township operations. That investment will preserve 1,900 jobs at the facility. Making this possible is a state tax credit valued at $56.8 million over 11 years and a smaller tax abatement from Redford Township
Fisher & Company, an automotive seat component supplier, chose to invest $14.8 million in its St. Clair Shores and Sterling Heights facilities. A $778,358 state tax abatement over seven years is expected to save 189 jobs and help spur the creation of up to 138 more. Both automotive suppliers chose their Metro Detroit facilities over competing sites in Mexico.

WABCO North America, a tier-one supplier to the commercial vehicle industry, plans to invest $6.2 million to create a new division in Rochester Hills, a move that will create up to 274 new jobs. It received a state tax credit of $1 million over five years and the city of Rochester Hills is also considering a tax credit.
Troy-based Witzenmann, a manufacturer of flexible metallic components, expects to invest $13.1 million to expand its Troy presence. The project is expected to create 75 direct jobs thanks to a 10-year tax credit worth $325,354.

Five technology companies in Metro Detroit also came away with tax credits. They include:

National Logistics Management, a Landstar subsidiary specializing in supply-chain logistics technology, plans to invest $12.5 million in its Southfield facilities. The company expects to retain 122 jobs and create another 163 thanks to a $2.7 million state tax credit over five years.
Dearborn-based Nexcess.net, a web-hosting firm, will create 42 jobs over the next six years by investing $4.2 million to convert a building in Southfield into a data center for Web hosting and software development. It received a state tax credit valued at $202,081 to entice it to choose Michigan over Indiana and Illinois.
SPX Corporation, a Warren-based infrastructure tech firm, will spend the next five years investing $402,000 to create 34 new jobs. The firm will provide support to automotive companies launching plug-in electric vehicles. The MEDC gave it a $377,672 state tax credit and the city of Warren is considering a $10,000 abatement.
Ann Arbor-based NanoBio, a biopharmaceutical company specializing in vaccines, plans to invest $1.4 million in its expansion plans that will create 32 new jobs. It received a state tax credit of $434,378 over five years and the city of Ann Arbor is considering a tax abatement of $800,000 over that same period.
Grand River, an e-commerce company based in Ann Arbor, plans to create 48 new jobs through a $1 million investment in its facilities over the next five years. It had been considering a competing site in Wisconsin when a $361,376 state tax credit help convince it to stay in Michigan.

Source: Scott Robertson, managing partner of Grand River, and the Michigan Economic Development Corp
Writer: Jon Zemke