a monthly update brought to you by the Michigan Economic Development Corporation April 2009
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1 a monthly update brought to you by the Michigan Economic Development Corporation April 2009
2 LETTER FROM THE PRESIDENT & CEO Dear Friends, March was a high-visibility month for Michigan with the launch of the state s first-ever national tourism advertising campaign, then another round of favorable publicity generated by the ncaa Men s Final Four at Ford Field in Detroit, including Michigan State University s fantastic run. Pure Michigan television commercials are airing on 15 national cable networks and will be seen by some 60 million viewers. Connor Sport Court International Inc. in Amasa (Upper Peninsula) made the Final Four floor used at Ford Field and also supplied the game court for the ncaa Women s Final Four in St. Louis. Michigan continued its winning streak in economic development innovation by unveiling Michigan Business One Stop (michigan.gov/business), which will revolutionize the way companies and entrepreneurs do business with the state. As part of the Michigan Business One Stop launch, the Customer Assistance Center is now up and running. The center includes a team of 28 customer assistance all-stars ready to help businesses navigate state government. More good news arrived with Site Selection magazine s rankings for Michigan has returned to the top rungs, named the No. 3 state in the nation for new corporate facilities and expansions with 296 in 2008, jumping four places ahead of its 2007 ranking. Site Selection also recognized the Detroit-Warren-Livonia; Grand Rapids-Wyoming; Jackson; Muskegon-Norton Shores; and Adrian metro areas. Another major business publication, Trade & Industry Development magazine, honored the medc along with Grand Rapids Right Place in its fourth annual Corporate Investment & Community Impact (CiCi) awards competition for our role in attracting the San Diego-based Sequenom, specializing in genetics and molecular diagnostics, to Grand Rapids. It was recognized as one of the top 30 projects in North America in In March, the mega board approved 11 projects that will create over 2,600 jobs and bring more than $177 million in new investment to Michigan. They include four it companies, the new Mercedes-Benz Hybrid r&d center in Washtenaw County and the Magna Electronics expansion in Rochester Hills. In addition, the Michigan Strategic Fund board approved a $6.9 million cdbg grant to Thomas Township to support the $1 billion expansion of Hemlock Semiconductor Group s solar cell manufacturing operations, the Dow Corning joint venture s fourth expansion in Hemlock in four years. These stories and more in the pages to follow. Greg Main, President and CEO Michigan Economic Development Corporation sm
3 Target Industries Get a Helping Hand from Washington The state s diversification efforts received significant support from Washington in March. Our Centers of Energy Excellence program got a boost after President Obama signed legislation appropriating $2.5 million to the program. In addition, the Department of Energy is awarding $2.4 billion in grants under the American Recovery and Reinvestment Act for advanced battery manufacturing and electric vehicle deployment. The Obama administration is also making up to $5 billion available to support ailing auto suppliers. Businesses Flock to Manufacturing Diversification Summits The medc partnered with Prima Civitas Foundation to hold the Mid-Michigan Regional Manufacturing Diversification Summit in Lansing in March. Over 250 representatives from more than 100 companies were in attendance. This was the third of 12 state-wide summits targeting more than 2,500 companies with a goal of $1 billion in contracts, outreach to 400 companies to be serviced by industry experts and 100 companies receiving certification assistance from the Michigan Manufacturing Technology Center. The medc was also on hand to assist manufacturers in developing market diversification strategies. The next regional summit will be held April 15 at u of m-dearborn, hosted by the Wayne County Land Bank Corporation. Further information is available at MichiganAdvantage.org/diversification. Statewide Pre-Seed Fund Awarded $6.8 Million from 21st Century Jobs Fund The Strategic Economic Investment and Commercialization board (seic) awarded $6.8 million from the 21st Century Jobs Fund to establish a statewide pre-seed fund, which supports companies by providing access to early-stage capital to accelerate development. The fund is a collaborative effort between Ann Arbor spark, Automation Alley and the West Michigan Science & Technology Initiative. The Michigan Pre-Seed Capital Fund invests in technology-based companies to support business formation and acceleration in the competitiveedge sectors of advanced automotive, manufacturing and materials, alternative energy, homeland security and defense and life sciences. To date, the Michigan Pre-Seed Capital Fund has invested in 30 companies expected to create 600 new jobs over the next three years. Projections show the new funding will enable investment in 65 additional companies expected to create up to 800 new jobs. The Michigan Pre-Seed Capital Fund is administered by Ann Arbor spark in partnership with Automation Alley and West Michigan Science & Technology Initiative on behalf of the state s network of 15 SmartZones sm. The Michigan Pre-Seed Capital Fund is an equity investment fund and, as such, will receive the same returns as the third-party investor. The returns the fund receives from its investments will serve as seed money for its continuation. Ann Arbor One of 25 Solar America Cities Site Selection magazine reports the u.s. Department of Energy has selected Ann Arbor and 24 other cities to participate in the Solar America Cities program designed to help lay the foundation for a solar energy market. Ann Arbor has mapped the entire city for solar water heating by Travel Michigan s Pure Michigan Ads Airing on Cable TV Nationwide Travel Michigan has launched its first-ever national cable television campaign. The award-winning Pure Michigan commercials started airing nationally on March 30. The ads showcase some of Michigan s greatest assets, including golf, national parks, urban treasures and world-class cultural destinations. The campaign will run through June on 15 national cable channels, including the Golf Channel, the Travel Channel, a&e, Bravo, Style, Fine Living, hgtv, the Food Network, tlc, e!, the diy Network, cnn, msnbc, cnbc and Fox News. The ads will air more than 5,000 times nationally on cable tv. Michigan s tourism promotion budget has grown dramatically in recent years, from less than $6 million in 2005 to $30 million in Annual independent return-on-investment research has shown that Michigan s tourism promotion spending generates more for the state treasury than it costs. Specifically, for each dollar Michigan spent on out-ofstate advertising from 2004 through 2008, new visits to Michigan motivated by that advertising created more than $40 of spending at Michigan businesses and generated $2.86 in new state tax collections. To view the new ad campaign, go to michigan.org and click on View our Ads at the top of the page. AWA R D S A N D AC H I E V E M E N T S April
4 C O M PA N Y S U C C E S S E S Secure-24 Inc. Creating New Data Center in Plymouth Township The provider of managed hosting for the critical it systems of middle-market companies and large enterprises plans to invest $3.7 million to expand operations in southeastern Michigan, which includes growth of its Southfield-based administrative offices. The expansion is due in part to a special partnership with Wayne County to create a new data center in Plymouth Township to provide technology-hosting services for 43 municipalities within the county. The medc estimates that increased economic activity created by the plan will create 503 new jobs, including 263 directly by the company. Based on the medc s recommendation, the Michigan Economic Growth Authority (mega) board approved a state tax credit valued at $7.1 million over 10 years. Billhighway.com Expanding Operations in Troy The Web-based finance and accounting software provider that serves more than 1,450 organizations across North America and has managed more than $1.6 billion in online transactions plans to invest $5.7 million to expand operations in Troy to launch new programs. The project is expected to create 94 new jobs, including 43 directly by the company. The medc estimates the project will create an additional 51 indirect jobs. Based on the medc s recommendation, mega approved a state tax credit valued at $1.1 million over 10 years to encourage the company to expand in Michigan over competing sites in Texas, Kentucky and Washington, dc. To support the project, Oakland County will provide an estimated $25,000 in job-training funds. Quantum Learning Launching Educational Computer Game The producer of online educational games used in schools across the nation will invest $930,000 to launch its first educational virtual-world computer game for the consumer market from its office in Ann Arbor. The company s online educational game for schools, SkateKids Online tm, was recently named by the Software Information Industry Association as a finalist for a CODiE award in the best educational game or simulation category. The virtual-world project is expected to create 137 new jobs, including 47 directly by the company. The medc estimates the project will create an additional 90 indirect jobs. Based on the medc s recommendation, mega approved a state tax credit valued at $778,978 over 4 April 2009
5 seven years to convince the company to choose Michigan over competing sites in Illinois and Texas. The city of Ann Arbor will provide administrative assistance to support the project. Global Futures & Forex Expanding in Grand Rapids Township The Michigan-based online foreign currency and futures trading company will invest $13.8 million to move to a larger facility in Grand Rapids Township. The project will create 208 total jobs, including 105 jobs directly by the company, and retain 146 jobs at the company. The medc estimates increased economic activity created by the project will create an additional 103 indirect jobs. Based on the medc s recommendation, mega approved a state tax credit valued at approximately $1.3 million over seven years to help convince the company to expand in Michigan over a competing site in Indiana. Grand Rapids Township approved a tax abatement to support the project. Emergent Biodenfense Operations Eyeing Lansing Expansion The biopharmaceutical company focused on the development, manufacture and commercialization of vaccines and immune-related therapeutics anticipates investing $10.9 million to modify and expand its operations in Lansing. The project is expected to create 302 new jobs, including 93 directly by the company. The medc estimates the project could also create an additional 209 indirect jobs. Based on the medc s recommendation, mega approved a state tax credit valued at $3 million over 10 years to help convince the company to expand in Michigan over competing sites in other states. The city of Lansing has granted Emergent a tax abatement to support the project. create an additional 111 indirect jobs. Based on the medc s recommendation, mega approved a state tax credit valued at $3.4 million to help convince the company to expand in Michigan over a competing site in another state. The city of Rochester Hills is considering an eight-year abatement valued at $139,271 to support the project. Vehicle Safety Product Maker SoundOff Signal Expanding An industry leader in police, school bus, and commercial vehicle safety products will invest $6.1 million over seven years to expand its current facility in Jamestown Charter Township (Ottawa County), which is expected to create 244 new Michigan jobs, including 100 directly by the company. The medc estimates the project will create an additional 144 indirect jobs. Based on the medc s recommendation, mega approved a state tax credit valued at $1.4 million over seven years to help win the project for Michigan over a competing site in China. Jamestown Charter Township is considering an abatement to support the project. In addition, the medc will provide an employee training grant of up to $25,000 through the economic development job training program. C O M PA N Y S U C C E S S E S Magna Electronics Expanding Electric and Hybrid Vehicle Operations The manufacturer of electronic products for the auto industry plans to invest $20 million to expand operations in Rochester Hills to include products for electric and hybrid vehicles. The project is expected to create 201 new jobs, including 90 directly by the company. The medc estimates the project will April
6 C O M PA N Y S U C C E S S E S Mercedes-Benz Locating New R&D Center in Washtenaw The subsidiary of Daimler AG will develop and maintain a line of conventional and alternative propulsion systems in a new, permanent research and development facility in Washtenaw County. The project will generate a $9.9 million investment and create 454 total jobs, including 223 directly by the company. The medc estimates the project will create an additional 231 indirect jobs. Based on the medc s recommendation, the mega board today approved a state tax credit valued at approximately $7.5 million over 10 years to help convince the company to expand in Michigan over a competing southern state. The Ann Arbor region will consider a tax abatement to also support the project. Meijer Expanding Distribution Center in Monroe County The Michigan-based retailer plans to expand its distribution center in Newport to support the growth of the company. The project will generate $27 million in private investment and create 366 total jobs, including 190 directly by the company. The medc estimates the project will create an additional 176 indirect jobs. Based on the medc s recommendation, mega approved a state tax credit valued at $1.6 million to encourage the company to expand in Michigan over a competing site in Indiana. Berlin Township is considering an abatement to support the project. In addition, the medc will provide an employee training grant of up to $35,000 through the economic development job training program. New Luxury Residential and Retail Complex for Detroit State and local tax capture valued at $856,225 support the redevelopment and conversion of the Detroit Creamery Building and surrounding areas into a luxury residential and retail complex. Phase I of the project will convert the 120,000-square-foot primary building into 93 loft apartments. Phase II will convert a secondary building into a common area with a swimming pool and fitness center. The project will generate $61 million in new capital investment and is expected to create up to 50 new jobs. 6 April 2009
7 Former Washtenaw County Manufacturing Site Converting to Mixed-Use State and local tax capture valued at $281,450 will support the redevelopment of the former Federal Screw Works manufacturing site in downtown Chelsea. The mixed-use development will include residential, commercial, and office spaces. The project is expected to generate $5 million in new investment and create up to 50 jobs. German Woodworking Equipment Maker Opening Factory in Grand Rapids The world s largest manufacturer of woodworking equipment has chosen Grand Rapids for its first North American factory. Homag Group AG and its subsidiary Weeke Maschinenbau have joined with Stiles Machinery in Grand Rapids to form Weeke North America, a new company, to build cnc routers for small to mid-sized manufacturing shops in North America. Almost all components will be made locally, although some will continue to be made in Germany. Assembly will be done in the Grand Rapids plant. Metal Fabricator in $18 Million Expansion Detroit-based W Industries is investing nearly $18 million in a 200,000-square-foot expansion at its manufacturing and headquarters site in Detroit expected to create 100 new jobs over the new two years. The expansion will accommodate a new military materials handling contract as part of W Industries efforts to diversify into aerospace and alternative energy. TACOM Project Bringing 1,200 Jobs to Macomb County Construction will start soon on a $69 million administration building and parking deck at the u.s. Army s Detroit Arsenal in Warren for Tank Automotive and Armaments Command (tacom). The facility will accommodate jobs primarily transferring from the tacom Rock Island Armory in Illinois as part of the Base Realignment and Closure Commission s (brac) decision in C O M PA N Y S U C C E S S E S April
8 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 , at or visit MichiganAdvantage.org. APRIL 29 Michigan Strategic Fund (MSF) Board Meeting A monthly meeting to review and approve applications relative to the Private Activity Bond (pab) program, Community Development Block Grant (cdbg) program and other relevant issues. 30 Michigan Celebrates Small Business Lansing Center, Lansing This year mark s the fifth anniversary of the state s premier awards ceremony for entrepreneurs and small business leaders. This year, Josh Linkner, eprize founder and ceo, will be the keynote speaker. MAY 4 7 American Wind Energy Association s WINDPOWER 2009 Conference and Exhibition McCormick Place Convention Center, Chicago The annual event drawing over 8,000 conference participants and 400+ exhibitors is the largest wind energy gathering outside of Europe. The world s major wind turbine oems, developers and players in the supply chain both attend and exhibit at this event. 5 Special MEGA Board Meeting A special meeting of the Michigan Economic Growth Authority (mega) to consider awarding Michigan Business Tax (mbt) credits as incentives for jobcreating business expansions in Michigan Michigan Growth Capital Symposium Marriott Resort, Ypsilanti This event, put on by the University of Michigan s Zell Lurie Institute, encourages networking for entrepreneurial communities and growth of venture capital investment in the state. 14 CoreNet Michigan 2009 Awards Gala Book Cadillac Hotel, Detroit The event will honor John Ferchill, developer of the Book Cadillac Hotel, as the Kresge Foundation s Real Estate Contributor of the Year. 14 Strategic Economic Investment and Commercialization Board Meeting The seic Board seeks to foster the growth of Michigan s high-tech economy by investing in the best research and commercialization opportunities BIO International Convention 2009 Georgia World Congress Center, Atlanta, Georgia BIO is the world s largest biotechnology organization, providing advocacy, business development and communications services for more than 1,200 members worldwide. The convention is the number one annual event for the biotechnology industry in the world with over 20,000 attendees MEGA Board Meeting A monthly meeting of the Michigan Economic Growth Authority (mega) to consider awarding Michigan Business Tax (mbt) credits as incentives for job-creating business expansions in Michigan. 20 Michigan Strategic Fund (MSF) Board Meeting MEDC Offices, Lansing A monthly meeting to review and approve applications relative to the Private Activity Bond (pab) program, Community Development Block Grant (cdbg) program and other relevant issues. JUNE 14 Strategic Economic Investment and Commercialization Board Meeting The seic Board seeks to foster the growth of Michigan s high-tech economy by investing in the best research and commercialization opportunities The National Summit Ford Field, Detroit The National Summit will engage prominent leaders and participants from across the nation in debate and dialogue on four issues of vital importance to America s future in the global economy: technology, energy, environment and manufacturing. PRSRT STD U.S. POSTAGE PAID MIDLAND, MI PERMIT NO. 135
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