Battery plant deals hinge on tax credit

MUSKEGON TOWNSHIP, Mich. (WOOD) - On Tuesday, plans are expected to finalize for two new battery plants set to come to West Michigan, assuming the Michigan Economic Growth Authority passes millions of dollars in tax credits.

Representatives for Fortu PowerCell, the plant that would be located in Muskegon Township, said those tax credits were essential in bringing the new plant to the area.

"They're obviously very important to attract any industry," said David Kieft Jr., the Muskegon Township supervisor on Monday evening. "With the economy like it is, any incentive we can get to draw companies to Michigan rather than someplace else in the United States -- that's pretty huge for Michigan's economy."

The Muskegon Township board already has passed resolutions offering Fortu PowerCell local tax incentives, and the area is willing -- but the multimillion dollar project all hinges on Tuesday's vote.

The MEGA board is expected to grant the German company battery and high-tech MEGA credits, which would mean more than $100 million in tax credits over a span of four years.

"(It would be) very exciting with the economy as bad as it is, and so many people out of work," Kieft said. "This is very exciting and a lot of people are hoping to get the opportunity to work for Fortu PowerCell."

The lithium battery company's local attorney, Michael Haines, told 24 Hour News 8 "the credits are very important to the overall project to get off on the right footing."

If all goes according to plan, Haines said, the company plans to open a Muskegon office April 1 and would break ground about one year later.

Fortu PowerCell plans to create more than 700 jobs in a two-phase plan, Haines said, and hiring would begin in 2012.

The company would invest more than $600 million in a plant at the Bayer CropScience Industrial Park. Kieft said the plant is expected to be completed in two phases.

Phase one would build a more than 100,000 square-foot facility, and phase two would construct a more than 1 million square-foot one.

Assuming the company moves ahead with its plans, Kieft said he hopes Fortu PowerCell isn't the last employer looking to set up shop in the Muskegon area.

"We're hoping that this will be the start-up of what's yet to come," Kieft said. "We're hoping that more will follow once Fortu is set up out there."

Toda America, the company expected to open in Battle Creek, also is expected to be approved for MEGA credits at Tuesday's meeting.

The company is expected to bring a $70 million investment to the area, along with 57 new, high-wage and high-tech jobs, said Carl Dehn, the CEO of Battle Creek Unlimited, the city's economic development organization.