MEGA OK's Incentives For $29.3M In New Investments
LANSING -- The Michigan Economic Growth Authority Tuesday approved tax incentives for four projects expected to generate $29.3 million in new investment and up to 796 direct jobs.
"These projects will help businesses to expand in Michigan and transform blighted, contaminated or functionally obsolete properties to add jobs and diversify Michigan's economy," said Michael A. Finney, President and CEO of the Michigan Economic Development Corporation. "Michigan's economic gardening strategy offers wide-ranging help to growing companies in order to generate new job opportunities."
The MEGA board today approved incentives for the following Michigan projects:
* Priceline.com Inc. – Priceline.com is a nationally recognized online travel company that offers customers a broad range of travel services, including airline tickets, hotel rooms, car rentals, vacation packages, cruises and destination services. In 2008, Priceline established a call center for Booking.com at an existing facility in the Grand Rapids suburb of Wyoming. As a result of market strategy and global growth, the company plans to add staff to the Wyoming office. The company expects the expansion to create up to 562 jobs, resulting in an estimated state tax credit valued at up to $938,384 over the next three years. Expansion in Michigan was chosen over competing states in the western time zone. The City of Wyoming approved a10-year property tax abatement for the project in 2008, and will allow abatement of all new personal property attributed to the project as well. www.priceline.com
* Quad/Graphics, Inc. – Quad/Graphics is a printing company that produces catalogs, magazines, books, direct mail and other commercial material. Based in Sussex, Wis. with offices across North America, Latin America and Europe, the company is planning to fortify operations at its facility in Midland. The company expects to create up to 152 additional jobs, resulting in an estimated state rural tax credit valued at up to $434,762 over the next five years. Michigan was chosen over competing sites in other states. The City of Midland is supportive of the project and anticipates the approval of tax abatements. http://www.qg.com/
* Eaton Steel Brownfield Redevelopment Project – The City of Oak Park Brownfield Redevelopment Authority will use local and school tax capture valued at $366,273 to demolish five vacant industrial buildings in the City of Oak Park. The redeveloped buildings will be used by Eaton Steel for expanded steel bar cutting operations as well as storage and retrieval operations. The project is expected to generate $9.5 million in new investment and create up to 51 permanent full-time jobs.
* Queen Lillian Medical Office Building Project – The Detroit Brownfield Redevelopment Authority will use local and school tax capture valued at $408,647 to redevelop a partially vacant lot into a five-story, 62,840 square foot medical office building complex in the City of Detroit. The primary tenant will be Wayne State University School of Medicine™. The project is expected to generate $18 million in new investment and create up to 31 permanent full-time jobs.
For the year to date, the MEGA board has approved agreements to assist the expansion of 50 companies that are projected to invest approximately $1.27 billion and create or retain approximately 14,039 direct jobs. It has also approved 120 brownfield redevelopment projects with projected new investment of more than $767.7 million.
The MEGA may, under statute, provide a refundable tax credit against the Michigan Business Tax to companies expanding or relocating their operations in Michigan. 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.
Beginning Oct. 1, the $100 million Michigan Business Development and Michigan ommunity Revitalization Programs are replacing the state's previous MEGA, Brownfield and Historic tax credit programs that were features of the Michigan Business Tax that will be eliminated under business tax restructuring legislation approved and signed into law by Governor Rick Snyder in May.
