Companies to invest $421 million

Governor Granholm yesterday announced that companies will invest $420.6 million in Michigan, creating and retaining 6,293 jobs (1,395 total new jobs) for state workers.

The Michigan Economic Development Corporation is helping seven companies grow in Michigan and backing six brownfield redevelopment projects.

"We continue making significant progress toward diversifying Michigan's economy," Granholm said. "The expansions announced today demonstrate that businesses across a wide spectrum are choosing Michigan over other states for new growth opportunities. These are the types of projects that will help transform our economy and create good-paying jobs for our workers."

The MEGA board approved incentives to win the following projects for Michigan over competing states and countries:

- A.J.M. Packaging Corporation - The major manufacturer of converted paper products, including paper plates and grocery sacks, plans to invest $28.3 million to upgrade its facility in Southgate and expand into the foodservice market. The company is expected to create up to 292 total jobs, including 125 directly by the company. The MEDC estimates the increased economic activity created by the project may create an additional 167 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $564,772 over five years to convince the company to expand in Michigan over a competing site in New Jersey. The city of Southgate is considering an abatement in support of the project. http://www.ajmpack.com/

- Bright Automotive Inc. - The new-to-Michigan developer of the IDEA, a brand new, 100 mile per gallon plug-in hybrid electric vehicle, plans to invest $11 million to open a technical center in Rochester Hills, which will serve as one of its locations for research, design and development of the energy-efficient vehicle and related vehicle technologies. The project is expected to create up to 530 total jobs, including more than 200 directly at Bright Automotive. The MEDC estimates the increased economic activity created by this program has the potential to create an additional 326 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $4.3 million over five years. http://www.brightautomotive.com/

- Gerdau MacSteel Inc. - A manufacturer of SBQ steel bar products for the automotive, heavy truck and other industries with facilities in Blackman Township, Monroe and Napoleon Township plans to invest $67 million to help secure the company's long-term viability and reach new market segments. The project is expected to retain up to 778 jobs directly at the company. The MEDC estimates increased economic activity created by the project has the potential to retain an additional 1,227 indirect jobs for a total of 2,005 jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $9.2 million over five years to help convince the company to expand in Michigan over a competing site in Arkansas. http://www.gerdaumacsteel.com/

- IT Group LLC d/b/a Member Driven Technologies - The information technology service provider for credit unions plans to invest $6.4 million to expand and build a second data center in Southfield. The project is expected to create up to 233 total jobs, including the potential for as many as 101 directly at the company. The MEDC estimates the increased economic activity created by this project has the potential to create an additional 132 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $557,092 over five years to convince the company to expand in Michigan over a competing site in Colorado. The city of Southfield is considering an abatement in support of the project. http://www.mdtmi.com/

- Michigan Automotive Compressor Inc. - The joint venture between Toyota Industries Corporation and DENSO, which manufactures automotive air conditioning compressors, plans to invest $72 million to upgrade its facility in Parma. The project is expected to retain up to 2,025 total jobs, including 562 directly at the company. The MEDC estimates increased economic activity created by the project has the potential to retain an additional 1,463 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $4.9 million over five years to convince the company to expand in Michigan over competing sites in Georgia, Ohio, Canada, China, Germany and Japan. The village of Parma anticipates granting an abatement in support of the project. http://www.michauto.com/

- Montaplast of North America Inc. - A global leader in plastic injection molded products for the auto industry plans to invest $2.3 million to grow its technical and R&D capabilities in Auburn Hills. The project is expected to create up to 50 total jobs, including 25 directly at the company. The MEDC estimates the increased economic activity created by this project has the potential to create an additional 25 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $324,801 over five years to encourage the company to expand in Michigan over a competing site in Kentucky. The city of Auburn Hills is considering an abatement in support of the project. http://www.montaplast.com/en/

- Toyota Boshoku Corporation Inc. - The manufacturer of automotive interior systems, air and oil filters, and power train systems for a variety of customers, including Toyota Motor Corporation and General Motors, plans to invest $3.2 million to consolidate and expand its prototype operations in Novi. The project is expected to create up to 75 total jobs, including up to 40 directly at the company. The MEDC estimates the increased economic activity created by the project has the potential to retain an additional 35 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $209,736 over five years to encourage the company to expand in Michigan over a competing site in Kentucky. The city of Novi is considering contributing to administrative fees and infrastructure improvements to support the project. http://www.toyota-boshoku.co.jp/en/index.html

- Chrysler Group LLC - The automotive manufacturer that designs, manufactures and assembles vehicles under the Chrysler, Dodge, Jeep and Ram Truck brand names has been approved by the MEGA board for a $45 million Plug-in Electric Vehicle Engineering credit to support the company's $137 million investment in development of a four-passenger City Electric Vehicle off the Fiat 500 platform for the 2013 model year. Separately, the company plans to redevelop the Sterling Heights Assembly Plant (SHAP). Although SHAP is currently operating, it was scheduled for closure in 2012 without new investment and renovation. A state brownfield Michigan Business Tax credit valued at $10 million will support the project, which includes exterior and interior site demolition, site improvements and construction of a new 425,000 square-foot paint shop. The project will retain approximately 1,809 jobs and generate $300 million in investment, part of an $850 million investment in the plant and surrounding stamping plant previously announced in October 2010. http://www.chryslergroupllc.com

- Everest Campus LLC - A state brownfield credit valued at $5 million will support a project to redevelop the property formerly known as the LeValley Buick-Pontiac-Cadillac-GMC dealership in Benton Harbor. The project will include the demolition of unoccupied buildings and the construction of a new three-story office building that will be part of the new Whirlpool headquarters. Fisherman's Park along the St. Joseph River will also receive enhancements. The project will generate $27.5 million in new private investment.

- Whirlpool Corporation - A state brownfield credit valued at $7.7 million will support a two-phased project that will build a new headquarters campus on Main Street in Benton Harbor. The project will include demolition of existing unoccupied buildings, and the construction of a new three-story office building and a one-story retail building. The project will generate $41.3 million in new private investment and retain 868 jobs. http://www.whirlpool.com

- City of East Lansing - State and local tax capture valued at $3 million will support a brownfield project to demolish two functionally obsolete, single-use two-story structures and construct an eight-story mixed-use building on the property located at 211 Albert Avenue. The first floor will utilize restaurant and commercial space and the upper floors will contain 42 apartments. The project is expected to generate up to $9.7 million in new private investment and create up to 45 new jobs.

- City of Cheboygan - State and local tax capture valued at $486,609 will support a brownfield project to acquire Main Street properties adjacent to the Straits Area Federal Credit Union's current main branch for future expansion of operations in downtown Cheboygan. The project is expected to generate up to $2 million in new private investment and create up to 10 new jobs.

- City of Port Huron - State and local tax capture valued at $710,791 will support a brownfield project to redevelop the former Sperry Department Store Building which is a historical structure located at the center of Port Huron's central business district. Renovations include pursuing LEED certification, replacing all of the mechanicals, adding a new roof, rebuilding the windows, restoring the entire façade and replacing the elevators. The lower lever of the building will include up to 15 incubator office sites to help Michigan entrepreneurs and innovators. The project is expected to generate up to $12.9 million in new private investment and create up to 160 new jobs.

"The state's talented workforce and competitive business climate help make the case that Michigan is a great place for companies to invest and grow," MEDC President and CEO Greg Main said. "Those factors, in combination with the state and local economic development tools that are part of our aggressive economic strategy, help ensure their growth well into the future."

The Michigan Economic Growth Authority, the state's response to interstate competition for company expansions and relocations, may provide a refundable tax credit against the Michigan Business Tax (MBT) to companies expanding or relocating their operations in Michigan. Since January 2010, nearly 335,000 new and retained jobs have been announced as a result of the MEGA, brownfield and additional incentive programs.

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.

The Michigan Economic Development Corporation, a 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 website at http://www.michiganadvantage.org/.

Economy hit two-year high in September

Comerica Bank’s Michigan Economic Activity Index rose two points in September to a level of 89, the highest Index reading since June 2008.

September’s reading is up 14 points from the year-ago level, and up 18 points (25%) from the Index cyclical low. September marks the seventh month of consecutive double digit year-on-year increases in the Index. Year-to-date the Index has averaged 11 points, or 15%, above the Index average for all of 2009.

“Over the three months through September, our Index showed a renewed uptrend after having stalled from February through June,” said Dana Johnson, Chief Economist at Comerica Bank. “My sense is that Michigan’s economy was reaccelerating along with the national economy as the summer drew to a close. Looking ahead, the Michigan economy should continue to make modest gains over the last quarter of 2010, against a background of sluggish but sustained national growth.”

The Michigan Economic Activity Index equally weights nine, seasonally-adjusted coincident indicators of real economic activity. These indicators reflect activity in the construction, manufacturing and service sectors as well as job growth and consumer outlays.

Snyder leads new charge for turnaround

Like many Republicans donning new-found mantles of power this morning, Michigan's next governor Rick Snyder faces the task of converting from angry outsider to an office holder responsible for breaking gridlock and brokering change.

On paper the task will be made easier by virtue of other Republican wins last night that put the GOP in charge of the entire state government.

Snyder struck an ealy conciliatory note in his acceptance speech last night, saying that
"Our culture is broken in this state. We've been beaten up for too many years. We've become too negative. It is time for us to stand up as Michiganders and say here is a vision for the future, here is a plan, here is an attitude of action in a positive, forward-looking inclusive fashion. And by doing that, we will create more and better jobs, we will keep our young people here and will be a great state again."

The victory by Snyder, a venture capitalist and former computer industry executive, was a welcome outcome for many business leaders who have called for an overall climate change in the state. Among them are members of Business Leaders for Michigan, a business roundtable that had backed Snyder's platform as consistent with it's own blueprint, the Michigan Turnaround Plan.

"BLM believes Michigan requires fundamental changes in its fiscal, budget, tax and
economic development policies," a grroup statement said in August. "Mr. Snyder’s track-record in finance, business and economic development along with his willingness to seek practical, collaborative solutions best positions him to turn around Michigan."

The current director of BLM, Doug Rothwell, is said to be among possible key members of Snyder's transition team at this writing. Rothwell was head of the Michigan Economic Development Corporation under Gov. John Engler. Gov. Granholm was on her way to Detroit this morning to meet with Snyder and discuss steps toward making the transition of power as smooth as possible.