Michigan Good News - Michigan Economic Development Corporation

a monthly update brought to you by the Michigan Economic Development Corporation
September 2009
LETTER FROM THE PRESIDENT & CEO
Dear Friends,
Michigan: Advanced Battery Capital of the World. Has a nice ring to it, doesn’t
it? Days after the U.S. Department of Energy awarded Michigan more than $1.35
billion in competitive grants for advanced battery manufacturing and electric vehicle
components, we received further confirmation that this emerging industry is taking
hold when General Motors announced it had chosen Michigan for the nation’s first
high-volume automotive battery manufacturing site. The automaker will invest
$43 million in a facility in Brownstown Township south of Detroit to assemble batteries
for the 2011 Chevrolet Volt late next year. Additionally, Bay City’s GM Powertrain plant
announced a $37 million investment to produce engine parts for the 2011 Chevrolet
Volt and Cruze electric cars.
The Pure Michigan campaign, which has already been recognized by Forbes magazine
as one of the 10 best tourism promotions of all time, took the Oscar of travel awards
this month. Travel Michigan is being honored for the third consecutive year by the
U.S. Travel Association with its coveted Mercury Award for the Pure Michigan
campaign, taking the 2009 Best State Tourism Radio Advertising for the Pure Michigan
campaign, and another for the Best State Tourism Niche Marketing for the Pure
Michigan golf and hunting campaigns.
As we enter the last days of summer, the medc and the state’s Michigan Economic
Growth Authority turned up the heat with the announcement of eight more jobcreating projects expected to create and retain 3,000-plus jobs and generate capital
investment of more than $138 million. Spanning upper and lower Michigan, they
include a next-generation chemical company near Lansing focused on manufacturing
bio-based materials, and a start-up healthcare manufacturer in Kalamazoo. Support
from the mega program helped Michigan win these projects over competing states and
countries, including Arkansas, Indiana, Minnesota and Canada. Since January 2009,
more than 70,818 new and retained jobs have been announced as a result of the mega
program.
On the redevelopment front, the state’s brownfield program is supporting the
restoration of neglected real estate to the tax rolls and renewed participation in
the local economy. On Lake Charlevoix in downtown Boyne City, in Marquette
at Founder’s Landing on the Lake Superior shore and in the city of Cadillac, new
developments are planned that will create new opportunities for businesses and
residents in these communities.
These and more good news stories can be read in the pages that follow. Enjoy!
Greg Main, President and ceo
Michigan Economic Development Corporationsm
GM has chosen Brownstown Township, Wayne County, as
the site of its advanced battery facility for production of
lithium-ion battery packs for the Chevrolet Volt and other
extended-range electric vehicles. News of the company’s
$43 million commitment came a week after 12 Michigan
projects, including three by GM, were awarded more
than $1.35 billion in grants from the U.S. Department of
Energy (doe) to support advanced-battery and electricvehicle manufacturing and development. The doe grants
will support advanced electric-drive vehicle education
programs, including GM partnerships with Michigan
Tech and the University of Michigan, as well as programs
at Wayne State University and Kettering University.
STATE’S NEWEST RENEWABLE ENERGY
REN ZONE HOME TO ALTERNATIVE
ENERGY SUPPLIER
Auto supplier Energy Components Group llc (ecg)
is diversifying its vehicle-related engineering and
design capabilities into the alternative energy sector
with a $21 million expansion in St. Clair expected to
create 250 new jobs over the next five years. The Michigan
Strategic Fund (msf) board approved the city of St. Clair’s
request for a Renewable Energy Renaissance Zone®
(rerz), with a final decision expected soon from the State
Administrative Board. If approved, ecg will be the state’s
fourth rerz. The supplier of key components to leading
renewable energy companies was approved last May for
a state tax credit valued at approximately $2 million over
seven years to support its expansion in Michigan over
a competing site in New Mexico. The company plans to
begin operations by the end of 2009. The designation
allows a company within the zone to operate free of
virtually all state and local taxes for six years effective
January 1, 2010.
MANUFACTURING DIVERSIFICATION SUMMITS
HELPING SUPPLIERS FIND NEW MARKETS
The medc partnered with Southwest Michigan First and
regional economic development organizations in August
for the Automotive Diversification Summit in Dowagiac,
the center of the five-county region identified by the
medc. An audience of more than 100 learned about
strategies for converting capacity to advanced energy
technology, medical device, aerospace and homeland
security/defense manufacturing. It was the ninth of 13
statewide summits targeting more than 2,500 companies
with a goal of $150 million in contracts, outreach to 300
companies to be serviced by industry experts and 25
companies receiving certification assistance from the
Michigan Manufacturing Technology Center. For further
information about the medc’s diversification efforts,
visit MichiganAdvantage.org/diversification.
September 2009
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AWA R D S A N D A C H I E V E M E N T S
MICHIGAN LANDS NATION’S FIRST
HIGH-VOLUME ADVANCED BATTERY
MANUFACTURING SITE
AWA R D S A N D A C H I E V E M E N T S
PURE MICHIGAN CAMPAIGN WINS TOP
AWARDS FOR THIRD YEAR RUNNING
Travel Michigan is being honored for the third
consecutive year by the U.S. Travel Association with its
coveted Mercury Award for the Pure Michigan campaign,
taking the 2009 Best State Tourism Radio Advertising for
the Pure Michigan campaign, and another for the Best
State Tourism Niche Marketing for the Pure Michigan
golf and hunting campaigns. These join previous Mercury
Awards for the campaign: Best State Tourism Advertising
Campaign (2007), Best State Tourism Television
Commercials (2007), and Best State Tourism Radio
Campaign (2008). The Pure Michigan tourism campaign
went national for the first time this year and ran through
June on 15 cable channels: Golf Channel, Travel Channel,
A&E, Bravo, Style, Fine Living, HGTV, Food Network,
TLC, E!, DIY Network, CNN, MSNBC, CNBC and Fox
News. For each dollar Michigan spent on out-of-state
advertising from 2004 through 2008, new visits to the
state created more than $40 of spending at Michigan
businesses and generated $2.86 in state tax collections
per person. The Mercury Awards program created by the
National Council of State Tourism Directors recognizes
members for excellence and creative accomplishment in
state tourism marketing and promotion.
MICHIGAN RATED NO. 1 IN SOCIAL
MEDIA TOURISM PROMOTION
Travel Michigan has earned the top-ranking among the
50 official U.S. tourism office Web sites in the use of social
media. In a recent study, How Social is Your State DMO,
conducted by Gammet Interactive, Michigan takes the top
spot for the use of popular social media outlets including
Facebook, Twitter, Flickr, YouTube and others. In addition
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September 2009
to the most popular state tourism Web site, michigan.
org, visitors now have other means to stay up-to-date on
Michigan tourism deals, discounts and events.
Connect and get the inside scoop on where the fish
are biting, what greens are running fast and how you can
make your visit Pure Michigan at the newly launched
blog, Pure Michigan Connect. Read about bloggers’
experiences along the nation’s longest freshwater coastline
or experience at a small town celebration. Take a minute
to comment on the blog posts, or submit one of your own.
Follow @PureMichigan on Twitter for the latest
events and breaking news, along with some fun behindthe-scenes information on all the things going on with
Michigan tourism. Search hashtags #puremichigan,
#MIevents, #MIdine, #MIgolf, #MIfish, and #MIwine for
all the latest.
Join the Pure Michigan Fan Page on Facebook to stay
up-to-date on all the latest events in Michigan and talk to
others with the same love for Michigan. The fan page is
another great resource for planning a trip.
In addition, visitors can now enjoy all the photos from
the Pure Michigan Photo Contest on Flickr, or watch all of
the Pure Michigan commercials on YouTube.
Michigan.org continues to be a source for Michigan
travel information, featuring more than 12,000 attractions,
events, hotels, resorts, restaurants and other tourismrelated businesses.
Travel Michigan, a division of the Michigan Economic
Development Corporation, is the state of Michigan’s official
agency for the promotion of tourism. Travel Michigan
markets the state’s tourism industry and provides valuable
visitor information services.
A new program, the Michigan Supplier Diversification
Fund, is available to help borrowers and lenders overcome
the current lack of bank financing. Pending msf approval,
three companies will receive assistance through the
Collateral Support Program recently launched under the
Michigan Supplier Diversification Fund. The medc is
partnering with the companies, the U.S. Small Business
Administration, the Michigan Certified Development
Corporation (mcdc) and banks to provide the necessary
liquidity for purchase of fixed assets and expanded
working capital as follows:
• The Morley Companies Inc., a marketing organization
which has historically serviced the auto industry, is
expanding to capitalize on new opportunities in the
it industry. Citizens Bank plans to fast-track a loan
for approximately $5 million for a new facility in
Saginaw. The msf approved allocation of $2.3 million
to be used as a collateral deposit. Citizens will also
work closely with the sba and mcdc to provide
additional access to capital for the project, which is
expected to create up to 350 new direct jobs.
• Gaylord-based Mark One Corporation, an
equipment/machine fabricator, is expanding
to utilize its newly developed GreenCleen
technology, which is expected to revolutionize
and decontaminate the steel-cleaning process.
Independent Bank has agreed to fast-track a
consideration of the loan request for $3 million to
assist in a significant expansion. Independent may
additionally work with the sba to increase access to
capital. The msf approved allocation of $1.1 million
to be used as a collateral deposit. The project is
expected to create up to 50 new direct jobs.
• Motor City Stamping Inc., a Chesterfield Townshipbased stamper, welder, fabricator and in-house
tool and die maker, is diversifying into military and
defense contracting. Huntington Bank plans to
provide a loan for up to $5 million for an expansion
expected to create up to 150 new direct jobs. The
msf approved allocation of $2.4 million to be used as
a collateral deposit.
The medc is now accepting applications for the Michigan
Supplier Diversification Fund. Information is available to
interested borrowers and lenders at the customer service
center at 517.373.9808.
DEFENSE CONTRACTOR BREAKS GROUND
ON STERLING HEIGHTS EXPANSION
BAE Systems is launching a $58.4 million expansion
project for its Land & Armaments operating group in
Sterling Heights. The military-based firm is taking over
the former TRW Automotive site on Van Dyke between
14 and 15 Mile roads, investing $58.4 million to turn the
81-acre property into its new engineering campus. It will
feature a 250-seat auditorium and a virtual reality dome
to accommodate modeling simulation and test programs.
The project, scheduled for completion by fall 2011, is
expected to create 460 new engineering and high-tech
jobs at the company and an additional 559 spin-off jobs
over the next 14 years. State and local incentives valued at
$27.1 million helped win the expansion over competing
sites in Alabama, Pennsylvania and California.
September 2009
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C O M PA N Y S U C C E S S E S
NEW PROGRAM HELPING THREE BUSINESSES
OBTAIN COMMERCIAL LOANS FOR
DIVERSIFICATION/EXPANSIONS
C O M PA N Y S U C C E S S E S
HAWORTH INC. CONSOLIDATING CANADIAN
MANUFACTURING IN HOLLAND, BIG RAPIDS
The Holland-based designer and manufacturer of office
furniture and workspaces, founded in 1948, plans to
invest $15.6 million to consolidate wood and wall product
manufacturing from its facility in Calgary, Alberta to
existing facilities in Holland and Big Rapids. The project
will create 1,391 jobs, including 649 directly by the
company and an additional 742 indirect jobs. State and
local tax credits valued at $23.5 million over 13 years
helped convince the company to locate in Michigan.
Haworth Inc., operating as a subsidiary of Haworth
International Ltd., has nine U.S. manufacturing and
distribution centers, seven of them in Michigan where
it has 1,890 employees. Haworth Inc. and its various
affiliates have more than 6,300 employees, manufacturing
facilities in 10 countries and business operations in 24
countries. www.haworth.com
BIO-BASED MSU SPINOFF BUILDING
PILOT PLANT IN INGHAM COUNTY
Draths Corporation, founded in 2005 to commercialized
technology developed in a Michigan State University
laboratory, is a next-generation chemical company
focused on technology that enables the production
from renewable feedstocks of nylons, resins and paints
currently made from petroleum-based chemicals. Draths
plans a $41.3-million headquarters, research facility
and multiple pilot in Delhi Township. The new facility
will enable the company to develop commercial scale
manufacturing data for their new product, caprolactam,
used in the production of nylon 6 for car parts, carpet
and clothing, The project will create 642 new jobs,
comprising 200 directly by the company and 442 indirect
jobs. State tax credits valued at $5.2 million over 10 years
helped convince the company to choose Michigan over a
competing site in Minnesota. www.drathscorporation.com
HIGH-TECH INDIANA COMPANY
LOCATING START-UP MANUFACTURING
PLANT IN KALAMAZOO
South Bend-based Mossberg Precision Diagnostics
llc plans investment of $1.5 million in a start-up
manufacturing facility in Kalamazoo to develop,
formulate and package new healthcare consumables such
as reagents and stains for pathology and cytology lab
testing. The project will create 110 total jobs, 35 directly
by the company and 75 indirect. State and local tax
credits valued at $904,029 over 10 years were offered to
encourage the company to expand in Michigan instead
of near the parent company in Indiana.
EMPLOYEE-OWNED COMPANY PLANS NEW
ALTERNATIVE ENERGY PRODUCT LINE
Bradford White Corporation, a water-heater manufacturer
founded in 1881 with operations in Michigan since 1934
and currently with 937 employees in Michigan, plans
to invest $3.48 million to introduce two new product
lines at its facility in Middleville, Barry County. A group
of Bradford White employees formed an employee
stock ownership trust in 1992 and bought the company
from its parent sabh. Since that time the company
has sold exclusively to wholesale distributors. The first
new line will be alternative energy products to support
primary energy sources other than electric, gas or oil,
and the second is Ultra Low Nox to reduce nitrous oxide
emissions from natural gas combustion. The project is
expected to create 200 jobs overall, 88 directly by the
company and 112 indirect. State tax credits valued at
$1 million over seven years helped convince the company
to expand in Michigan instead of an existing plant in
New Hampshire. www.bradfordwhite.com
WOLVERINE WORLD WIDE BRINGING
OPERATIONS FROM ARKANSAS TO BIG RAPIDS
One of the world’s leading marketers of branded casual,
active lifestyle, work, outdoor sport and uniform footwear
and apparel plans to expand and move its Arkansas
operations to a facility in Big Rapids, Mecosta County.
Wolverine World Wide Inc, headquartered in Rockford,
Michigan will continue to invest in the Big Rapids facility
to accommodate capacity expansion which is expected
to create 532 jobs in the area, once completed. Of the total
jobs created, 286 are planned to be added by the company
over the next three years, plus 246 indirect jobs. State tax
incentives valued at $2.5 million over seven years helped
win the project for Michigan.
www.wolverineworldwide.com
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September 2009
BROWNFIELD REDEVELOPMENT
TRANSFORMING DOWNTOWN BOYNE CITY
The One Water Street brownfield redevelopment will
bring new retail, restaurant and office space along
with a 37-unit hotel on a 2.5-acre site at the end of Water
Street on the Lake Charlevoix shore. State and local tax
capture valued at $40,032 will support the project, which
includes demolition of the remaining buildings on the site
and remediation of the property. The project will generate
$12.3 million in new capital investment and is expected
to create up to 40 new jobs.
NEW GREENHOUSE AND FRESH FOOD
RETAIL OPERATION COMING TO CADILLAC
Blighted property at 924 South Mitchell in Cadillac,
Wexford County will be replaced by a new retail and
greenhouse operation offering fresh fruits, vegetables,
nursery plants and related specialty items. State and
local tax capture valued at $95,074 will support site
improvements including lead and asbestos abatement.
The project will generate $600,000 in new capital
investment and is expected to create up to five new jobs.
FOUNDER’S LANDING PROJECT
IN MARQUETTE PRESERVES LAKE
SUPERIOR SHORELINE
Seven years after the city of Marquette bought the 29acre abandoned railroad property commonly known as
Founder’s Lansing, construction has begun on the first
condominium unit which is scheduled for completion in
November. So far the city has invested $11 million in the
project, which is expected to generate more than $57 million in new capital investment and create up to 150 new
jobs. State and local tax capture valued at $30.5 million
will support the citizen initiative to secure and preserve
the property which includes 3,600 feet of Lake Superior
shoreline. When completed, Founder’s Landing is expected to house a hotel, a boardwalk along the shoreline,
a restaurant and bar and indoor marketplace.
September 2009
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COMMUNITY SUCCESSES
Michigan’s brownfield redevelopment program is among
the most competitive in the country. Over the course of
the past 10 years, it has been instrumental in redeveloping
over 500 sites throughout the state, generating an actual
investment of $2.5 billion. Brownfield redevelopment
represents an opportunity to redesign and enhance
our communities and often has a profound effect. The
removal of a blighted building, increased tax revenue,
job creation, downtown revitalization, or elimination of
a contaminated site are all benefits communities can see
through the use of this incentive. The continued investment
in brownfield redevelopment will help Michigan’s
economic recovery and benefit our communities for years
to come.
CALENDAR OF EVENTS
The following list has activities conducted/sponsored by both the MEDC and local economic development
partner organizations throughout the state. For more detailed information on any of these activities, please
contact the MEDC at 517.373.9808, e-mail at [email protected] or visit MichiganAdvantage.org.
SEPTEMBER
16
Michigan Diversification Summit
Genesee Regional Chamber
of Commerce, Flint
The medc and the Genesee Regional
Chamber of Commerce will be hosting
a diversification summit for Michigan
manufacturers seeking to diversify into
growing manufacturing sectors.
www.thegrcc.org
16
SEIC Board Meeting
MEDC offices, Lansing
The Strategic Economic Investment and
Commercialization (seic) board seeks to
foster the growth of Michigan’s high-tech
economy by investing in the best research
and commercialization opportunities.
21–25
European Photovoltaic Solar
Energy Conference 2009
Hamburg, Germany
The “who’s who” of the pv solar branch
will meet at Hamburg to discuss the latest
developments in science and industry,
providing an excellent platform for dialogue
and information exchange across the world.
www.photovoltaic-conference.com
22
MEGA Board Meeting
MEDC offices, Lansing
A monthly meeting of the Michigan
Economic Growth Authority (mega) to
consider awarding Michigan Business
Tax (mbt) credits as incentives for jobcreating business expansions in Michigan.
30
MSF Board Meeting
21
Michigan Diversification Summit
MEDC Offices, Lansing
A monthly meeting of the Michigan
Strategic Fund (msf) to review and
approve applications relative to the Private
Activity Bond (pab) program, Community
Development Block Grant (cdbg)
program and other relevant issues.
Muskegon
The medc and Muskegon Area First will
be hosting a diversification summit for
Michigan manufacturers seeking to diversify into growing manufacturing sectors.
www.muskegonareafirst.org
OCTOBER
14
SEIC Board Meeting
Ritz-Carlton, Dearborn
More than 1,000 participants will engage
in a dynamic dialogue with entrepreneurs,
venture capitalists, top industry executives
and thought leaders at Michigan’s largest
conference on entrepreneurship.
www.tieconmidwest.org
MEDC offices, Lansing
The Strategic Economic Investment and
Commercialization (seic) board seeks to
foster the growth of Michigan’s high-tech
economy by investing in the best research
and commercialization opportunities.
21
TiECon Midwest 2009
28
MSF Board Meeting
MEDC Offices, Lansing
19–21
The Business of Plugging In Conference A monthly meeting of the Michigan
Motor City Conference Center, Detroit
The Business of Plugging Insm will bring
together vehicle manufacturers, suppliers,
energy companies, government agencies,
financiers and researchers to address the
challenges of creating a clean, diversified
and secure energy solution.
www.pev2009.com
20
MEGA Board Meeting
MEDC offices, Lansing
A monthly meeting of the Michigan
Economic Growth Authority (mega) to
consider awarding Michigan Business
Tax (mbt) credits as incentives for jobcreating business expansions in Michigan.
Strategic Fund (msf) to review and
approve applications relative to the Private
Activity Bond (pab) program, Community
Development Block Grant (cdbg)
program and other relevant issues.
NOVEMBER
3–5
AWEA Small and Community
Wind Conference and Exhibition
Cobo Center, Detroit
AWEA created this conference to bring
together industry leaders, new entrants,
project developers, economic development
groups, municipalities, land owners and
other allied organizations to formulate and
enact growth strategies for small and midsized wind applications.
www.smallandcommunitywindexpo.org
PRSRT STD
U.S. POSTAGE
PAID
MIDLAND, MI
PERMIT NO. 135