Metro Detroit takes lion's share of latest MEDC deals

Thursday, January 21, 2010 | Source: metromode

Metro Detroit is taking more than its share this time around when it comes to business-attracting, job-creating tax incentives.

The Michigan Economic Development Corp announced seven deals earlier this week. Five of those, and one brownfield redevelopment, are in Metro Detroit, representing 1,125 jobs and $24.8 million in investment. The projects are as follows:

- Troy-based ilumisys plans to spend $7.4 million to ramp up its research and development and manufacturing of its LED light technology. The Altair Engineering spin-off expects to create 213 new jobs in Troy after considering sites in China and Ontario. To make this happen, state officials approved a 12-year tax abatement worth $4 million.

- Fiat subsidiary Magneti Marelli Holding USA will consolidate its Michigan operations into one facility in Auburn Hills, an investment worth $4.5 million. The plan is to create 200 new jobs here instead of in competing sites in Tennessee and North Carolina. The state approved $4 million in tax abatements as part of the deal and Auburn Hills is also considering an abatement for the project.

- Colwell & Salmon Communications, which provides inbound and outbound contact services to Fortune 500 companies, is making plans to expand in Livonia. A $1.3 million tax abatement over four years (Livonia is also working on its own tax break for the company) helped the firm give the go ahead to invest $4.9 million to expand its current Livonia call center, a move that is expected to create 502 jobs.

- Livonia wins again now that Quality Metalcraft, an automotive engineering firm, plans to spend $1.7 million to design and manufacture aerodynamic fairings. That should equal 64 new jobs and $455,648 in tax breaks over five years.

- Troy gets another deal now that AxleTech (think axles, brakes, etc.) expects to retain 415 jobs and create 107 new jobs from a $5.4 million investment. The firm plans to consolidate four facilities into one in Troy. The MEDC negotiated a $1 million state tax credit (Troy is working out a $35,404 abatement) to make this happen in Michigan instead of Wisconsin.

Source: Michigan Economic Development Corp
Writer: Jon Zemke