4 local companies receive MEGA credits

LANSING, Mich. (WOOD) - Four local companies have received millions of dollars in tax credits from the Michigan Economic Growth Authority (MEGA) to assist with new jobs and expansion efforts.

The announcement was made Tuesday in Lansing.

Haworth Inc. is using a $22.4 million tax credit over 13 yers to transfer its wood and wall products manufacturing from Calgary, Alberta, Canada to Michigan. The company will invest $15.6 million in the project to add 649 direct jobs in Holland and Big Rapids. The Michigan Economic Development Corporation (MEDC) estimates increased economic activity created by the project will create an additional 742 indirect jobs. The city of Big Rapids is considering an abatement valued at $193,000 in support of the project. The city of Holland also is considering an abatement valued at $900,000 in support of the project.

Wolverine World Wide, Inc. will use a $2.5 million tax credit over the next seven years to help bring the majority of employees who were laid off from a plant in Jonesboro, Ark. to its Big Rapids facility. The company will continue to invest in its Big Rapids facility to accommodate capacity expansion, which is expected to create 532 jobs in the area, once completed. Of the total number of jobs created, 286 are planned to be added by the company over the next three years. The MEDC estimates the increased economic activity created by the project will create an additional 246 indirect jobs. The Michigan project beat out a competing site in Arkansas. The city of Big Rapids is considering abatements to support the project.

Mossberg Precision Diagnostics, LLC -- a start-up health care manufacturing company -- will use $817,579 in tax credits over 10 years to develop new products at a facility in Kalamazoo. The project will create 110 total jobs, including 35 directly by the company. The MEDC estimates the increased economic activity created by the project will create an additional 75 indirect jobs. The city of Kalamazoo is considering an abatement valued at $86,450 to support the project, which beat out a site in Indiana.

Bradford White Corporation will use $1 million in tax credits over seven years to introduce two new product lines at its facility in Middleville. The project is expected to create 200 jobs, including 88 directly by the company. The MEDC estimates the increased economic activity created by the project will create an additional 112 indirect jobs. The project beat out a competing site in another state. The village of Middleville is considering an abatement in support of the project.

Other developments from the MEGA meeting in Lansing --

Draths Corporation plans to make a multi-million dollar investment to construct a headquarters housing a research facility and multiple pilot in Delhi Township. The project will create 642 new jobs, including 200 directly by the company. The MEDC estimates increased economic activity created by the project will create an additional 442 indirect jobs. The next-generation chemical company combines microbiological and chemical processes to produce chemical intermediates such as nylon precursors from bio-based materials. The MEGA board approved a state tax credit valued at $5.2 million over 10 years to help convince the company to expand in Michigan over a competing site in Minnesota. Delhi Township is considering an abatement to support the project.

Charlevoix County -- State and local tax capture valued at $40,032 will support the redevelopment of a 2.5 acre site on Lake Charlevoix in downtown Boyne City. The development will include the demolition of the remaining buildings on the site and remediation of the property in order to construct two new buildings, which will include retail, office and restaurant space. The project will generate $12.3 million in new capital investment and is expected to create up to 40 new jobs.

City of Cadillac – State and local tax capture valued at $95,074 will support the development of property in Cadillac, conducting significant site improvements and constructing a new building and greenhouse for a retail operation that will offer fresh fruits, vegetables, nursery plants and related specialty items. The redevelopment will include lead and asbestos abatement. The project will generate $600,000 in new capital investment and is expected to create up to five new jobs.

City of Marquette -- State and local tax capture valued at $30.5 million will support the citizen initiative to secure and preserve the 29-acre property known as Founder's Landing, which includes 3,600 feet of Lake Superior shoreline. The city of Marquette has already invested $11 million in the project, including the acquisition of abandoned railroad property along the shoreline. The project will generate $57.2 million in new capital investment and is expected to create up to 150 new jobs.

On the Net:

Haworth Inc.

Wolverine World Wide, Inc.

Bradford White Corporation