MI: Michigan Economic Growth Authority Approves Incentives to Generate $173 Million in new Investment and Create 1,273 Jobs
16 Aug, 2011
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The Michigan Economic Growth Authority (MEGA) today approved tax credits for a business expansion, and plans for a hospital redevelopment and community development that are estimated to generate $173.1 million in new investment and a projected 1,273 direct jobs across the state.
“From leading edge technology to the re-use of a vacant hospital to a bike trail that will help reduce commuter traffic, today’s MEGA board action demonstrates that our economic gardening strategy is working to help companies grow and transform properties,” said Michael A. Finney, President and CEO of the Michigan Economic Development Corporation. “These incentives will help upgrade aged facilities, improve property values and bring new jobs to our communities.”
The MEGA board approved incentives for the following Michigan projects:
Gentex Corporation – Gentex Corporation (NASDAQ: GNTX) is known as the pioneer of the electrochromic, automatic-dimming mirror industry. The company has experienced approximately 19 percent compounded annual growth over the past 19 years, and anticipates continued growth in the future, due to robust demand for its products. To accommodate this growth, Gentex plans to invest approximately $160 million over the next five years to expand its facilities and add new production equipment in the City of Zeeland and Holland Charter Township. The company expects the expansion to create up to 1,110 jobs over the next five years, resulting in an estimated state tax credit valued at up to $2,446,465 over the next three years. In addition, the MEGA board amended an existing MEGA tax credit, issued in 2002, to include all Gentex facilities in the City of Zeeland and Holland Charter Township. The City of Zeeland and Holland Charter Township are supportive of the projects, and are expected to approve an estimated $7.2 million in tax abatements. www.gentex.com
Riverside Commons Redevelopment Project – The Trenton Brownfield Redevelopment Authority will use local and school tax capture valued at $2,224,250 to redevelop a vacant hospital and medical office complex on approximately 9.68 acres of property located at 2171 W. Jefferson in the City of Trenton. The project will include redeveloping the former hospital structure as a licensed nursing care/sub-acute rehabilitation facility. The project is expected to generate $12 million in new investment and create up to 163 permanent full-time jobs
Boardman Lake Avenue Pathway and Trail System Project – The original Work Plan approved by MEGA in 2001 authorized local and school tax capture for $3,327,847 for the design and construction of West Boardman Lake Avenue. The overall road construction scope has been refined and the project expanded to include an approximately 1.8 mile long non-motorized trail that will extend along the entire western shore of Boardman Lake. The Grand Traverse County Brownfield Redevelopment Authority has submitted a request for approval to increase local and school tax capture costs by $6,870,146. The total capital investment will be approximately $16 million for the overall project.
For the year to date, the MEGA board has approved agreements to assist the expansion of 47 companies that are projected to invest approximately $1.16 billion and create or retain approximately 12,968 direct jobs. It has also approved 15 brownfield redevelopment projects with projected new investment of more than $734.6 million.
The Michigan Economic Growth Authority (MEGA) may, under statute, provide a refundable tax credit against the Michigan Business Tax (MBT) to companies expanding or relocating their operations in Michigan. Tax credit agreements, awarded on the basis of the company’s strength of project, program guidelines and MEGA board approval, are earned over time by a company’s performance in meeting specified investment and hiring requirements.
The MEGA board is also empowered under statute to award Brownfield Redevelopment tax credits to support new business expansion projects on property that is contaminated, blighted or functionally obsolete.
The Michigan Economic Development Corporation, a public-private 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. For more information on the MEDC’s initiatives and programs, visit the Web site at www.MichiganAdvantage.org.