Today the Michigan Economic Growth Authority (MEGA) announced it has approved tax incentives for two projects expected to generate $121.3 million in combined new investment, two brownfield redevelopment projects and one significant brownfield amendment. This activity is expected to create/retain a projected 803 direct jobs in communities across the state.
"We are employing our economic gardening strategy to help companies grow and enlarge their footprint in Michigan," said Michael A. Finney, President and CEO of MEGA. "At the same time, these incentives will help transform blighted, contaminated or functionally obsolete properties into new centers of economic growth and activity."
HP Enterprise Services, LLC, is a Hewlett-Packard Co. subsidiary. It provides integrated business solutions across software applications, processes, consulting and support. The firm plans to invest up to $4.8 million to add technical employees in Pontiac, MI, and create a new supply channel of resources for the its U.S. public sector accounts. The expansion is expected to create up to 250 jobs, and result in an estimated state tax credit valued at up to $3.5 million over the next seven years. The company said it chose Michigan over competing sites because of its workforce and availability of technical resources.
Magna Exteriors and Interiors USA, Inc. is a subsidiary of Magna International, Inc. It operates as a full-service supplier of exterior and interior vehicle systems to the global automotive industry. Magna plans to invest $14.4 million to restructure and upgrade its newly acquired business, Continental Plastics Co., and consolidate the majority of this business to Continental Plastic's existing locations in China Township and Village of Benzonia, MI. Magna also plants to create jobs at an existing Magna Exteriors and Interiors facility in Howell; a move expected to create up to 333 jobs and result in a state tax credit valued at $1.49 million over the next three years. The Charter Township of China and the City of Howell, MI, plan to approve a five-year property tax abatement.
The City of Dearborn Heights Redevelopment Authority will use state and local tax capture valued at $69,617 to redevelop a vacant contaminated and functionally obsolete gas. The $1.1 million project is expected to create up to 35 full-time jobs.
The Wyoming Brownfield Redevelopment Authority will use state and local tax capture valued at $8.4 million to demolish all buildings at the former General Motors Grand Rapids Metal Stamping Plant and prepare 87 acres of the site for redevelopment by new advanced manufacturing operations.
General Motors LLC is amending a 2008 Large Brownfield MEGA board tax credit that involved a 530,000-sq.-ft. addition to the engine plant located at the company's Van Slyke complex. The amended credit, valued at $10 million, will support the complex's truck assembly operation. The new project is expected to add $91 million in private investment and will retain up to 185 jobs.