Description
During on this description in regard to year end report to the legislature.
Year-End Report
to the Legislature
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Year-end Report to the Legislature / FY 2011 / 2
MEDC FY 2011
21ST CENTURY JOBS FUND INITIATIVE
Te z1st Century Jobs Fund was created in zoo¸ and implemented in zoo6 to reshape and diversify Michigan’s
economy by sparking new investments to rapidly companies and jobs. Michigan’s economy is increasingly being
driven by young, entrepreneurial businesses. Tis new con?guration means the rebirth of industry in smarter,
faster, and leaner clusters of innovative manufacturers and service providers. Te z1st Century Jobs Fund now
has four primary areas of focus:
Development and Commercialization of Competitive Edge Technologies
First, to encourage the development and commercialization of competitive-edge technologies in the following
industry sectors:
• Life sciences • Advanced automotive, manufacturing and materials
• Alternative energy • Agricultural processing technology
• Information technology • Other innovative technology as determined by the MSF Board
And, advanced computing and electronic device technology, design, engineering, testing, diagnostics, or
product research and development as it relates to any of the competitive-edge technologies. Included in
the objective to commercialize competitive edge technologies and launch new ventures, are the critical
entrepreneurial support services, business incubators, and seed funds comprising the ecosystem in which these
ventures grow and thrive.
Increased Equity Investment
Te second focus of the fund is to increase capital investment activity in Michigan. Te z1st Century Investment
Fund is designed to attract and grow venture capital, private equity and mezzanine ?nancing in Michigan and is
structured as a state “fund-of-funds” program.
Increased Commercial Lending
Tird, the z1st Century Jobs Fund increases commercial lending activity in Michigan. To stimulate additional
lending by ?nancial institutions across the state, the z1st Century Jobs Fund has the ability to create commercial
loan enhancement programs. As part of that goal, the Capital Access Program (c»v) was reinstituted to
stimulate lending to small businesses in the state.
Industry Clusters
Te fourth area of focus is on developing new industry clusters in Michigan. With clear competitive advantages,
Michigan is poised to translate leading manufacturing and supply chain expertise, coupled with competitive
edge technologies, to launch and diversify into new vertical markets.
Te Michigan Economic Development Corporation (rvoc), in partnership with its industry partners,
local economic development professionals, business acceleration service providers, university researchers
and entrepreneurs statewide, has been seeking high-tech start-ups, expanding the risk capital market and
nurturing company growth through creation of a multi-faceted entrepreneurial ecosystem, thereby ensuring the
movement of promising technologies from the laboratory to the marketplace.
Te z1st Century Jobs Fund, and its predecessor programs, the Michigan Life Sciences Corridor and
Technology Tri-Corridor, have played an integral role in Michigan’s vastly expanded clean and renewable energy
manufacturing operations, and is growing our life sciences, advanced manufacturing, and homeland security
and defense industries. Te Michigan Strategic Fund Act was amended in April zo11 to allow information
technology ?rms, agricultural processing, and other innovative technology as determined by the MSF Board to
be eligible for assistance as competitive edge technology enterprises under z1st century investment programs.
Tis expansion will help the agriculture community create jobs in rural areas and make the fund available to
more technology industries.
Initially the z1st Century Jobs Fund initiative was primarily focused on long-term goals with a mission to
create a fertile climate for entrepreneurship and diversi?cation of Michigan’s economy. It has evolved to include
programs that provide short-term stimulus for companies needing immediate access to capital to diversify and
grow their business, resulting in more jobs and investment for Michigan.
Year-end Report to the Legislature / FY 2011 / 3
MEDC FY 2011
CENTERS OF ENERGY EXCELLENCE PROGRAM
Te Centers of Energy Excellence (covv) program began in zoo8 to promote the development, acceleration
and sustainability of energy excellence sectors in Michigan. COEE monies match federal funds in the state’s
four targeted clean energy sectors: advanced energy storage, solar energy manufacturing, wind energy
manufacturing, and bioenergy. By collaborating with universities and national laboratories, the COEE program
helps companies create jobs and develop manufacturing supply chains in Michigan. Te Michigan Strategic
Fund (rsr) awarded s¡¸ million to six companies in the ?rst round of the COEE program and sz1 million to
?ve companies in the second round. Te MSF Board authorized an additional s, million from the z1st Century
Jobs Fund to the COEE program for ?scal year zo11 awards. Te following projects were recommended for
funding:
COEE AWARDS
Fiscal Year 2011 (10/01/2010–09/30/2011)
Company name Project description Award amount
Dow Corning Corporation Dow Corning, a cooperative venture with Hemlock
Semiconductor and in collaboration with Oak Ridge National
Lab (ORNL), will establish the Solar Valley Research Enterprise
(SVRE) in the Midland area. Te center will coordinate
a regional cluster of private sector companies, academic
institutions and government labs to speed innovation and
commercialization in the photovoltaic value chain.
s6,ooo,ooo
Grid Logic Incorporated Metamora-based Grid Logic will collaborate with ORNL
to develop, test, certify and manufacture a fault current
limiter that shores up the power supply in the event of a
major disruption to the energy grid. Michigan Technological
University, Florida State University, Columbia University,
and North Carolina State University will assist with research
addressing fault current limiter-equipped networks compared
to conventionally protected networks. Te company expects to
create 200 direct jobs at its facility within ?ve years.
s¸,ooo,ooo
Total $9,000,000
Year-end Report to the Legislature / FY 2011 / 4
MEDC FY 2011
21ST CENTURY INVESTMENT FUND PROGRAM
Te z1st Century Investment Fund (z1st cir) program is essential to Michigan’s ability to compete both
nationally and internationally for new business and investments. Tis fund encourages the growth of emerging
Michigan companies, diversi?es the state’s economy by creating and retaining knowledge-based jobs, and grows
a community of investors to create a long-term, sustainable capital ecosystem within Michigan. Credit Suisse
Bank, a fund management industry leader, manages z1st CIF. Credit Suisse brings expertise in the selection of
venture capital, private equity, and mezzanine funds to invest in Michigan companies creating jobs.
Since zoo6, s1o, million has been committed to 1¸ funds and one company. As of September zo11, the
investment fund managers have invested s¸;.8 million in zo Michigan-based portfolio companies.
Fiscal year 2011 Michigan investments include:
Intervention Insights, a Grand Rapids-based company, believes that a personal approach to therapy has the
potential to increase survival time, improve a patient’s quality of life, and o?er treatments that increase the
chances of response. Its service uses dynamic molecular pro?ling techniques to provide physicians with patient-
speci?c information to help with their therapeutic intervention decisions. Intervention Insights is helping
to continue the promise of personalized medicine by focusing e?orts on cancer treatments. Accumulative
knowledge of the human genome along with enhanced molecular biology technologies presents a historical
opportunity to make advances that can directly bene?t cancer patients.
ArborMetrix, an Ann Arbor-based company, helps both hospitals and insurers respond to increasing market
pressures to optimize their e?ciency. It also helps them meet new challenges in the wake of health care reform,
including accountable care organizations, bundled payments, and new models for value-based purchasing.
ArborMetrix provides scienti?cally robust, state-of-the-art tools for tracking quality and cost-e?ciency in every
major clinical specialty, as well as practical solutions for helping hospitals improve.
CytoPherx, Inc., founded in July zoo; and headquartered in Ann Arbor, is a venture-backed, clinical stage
medical device company addressing in?ammation-based diseases and conditions with a proprietary selective
cytopheresis system. Te company’s products are custom, patent-protected con?gurations of commercially
available hollow ?ber dialysis ?lters that are used in a proprietary manner to sequester and deactivate
leukocytes in the patient’s blood system. CytoPherx is initially focused on acute renal failure (»vr).
Previous Michigan investments include:
Accord Biomaterials, Ann Arbor Kabongo, Ann Arbor
Accuri Cytometers, Ann Arbor Life Magnetics, Ann Arbor
Arbor Photonics, Ann ArboriSan Jose, CA Microposite, Auburn Hills
Delphinus Medical Technologies, Detroit Mobius Microsystems, DetroitiSunnyvale, CA
Eliason Corporation, Portage NanoBio, Ann Arbor
Esperion Terapeutics, Ann Arbor Outside Hub, South?eld
HandyLab, Ann Arbor Tissue Regeneration Systems, Ann Arbor
Histosonics, Inc., Ann Arbor Unitask, Inc., Bloom?eld Hills
Incept Biosystems, Ann Arbor
VENTURE CAPITAL INVESTED
Fiscal Year 2011 (10/01/2010–09/30/2011)
Venture capital $ invested in Michigan s;¡,ooo,ooo
Number of venture capital investments in Michigan ¸1
Venture capital $ investments in Midwest s1,6¸¸,ooo,ooo
Number of venture capital investments in Midwest z8;
Michigan investments as a percent of Midwest ¡.¸oº
Year-end Report to the Legislature / FY 2011 / 5
MEDC FY 2011
MICHIGAN SUPPLIER DIVERSIFICATION FUND
AND MICHIGAN BUSINESS GROWTH FUND
Te Michigan Supplier Diversi?cation Fund (rsor) program operates two loan enhancement programs designed
to help traditional manufacturers—especially auto manufacturers—transition and diversify into growing markets
such as alternative energy. Te ?rst loan enhancement program, the Michigan Loan Participation Program
(rsor-rivv), o?sets a borrower’s cash ?ow de?ciency by purchasing a portion of a lender’s credit facility and
o?ers a grace period on the state’s portion. A second program, the Michigan Collateral Support Program (rsor-
rcsv), balances a borrower’s collateral shortfall by depositing cash collateral into a lending institution to insure
against potential losses. Te Michigan Strategic Fund (MSF) Board initially approved funding for MSDF totaling
s1¸.¸ million. In zoo,, strong demand absorbed the ?rst round of funds within the ?rst few months of operation.
Consequently, the MSF Board approved an additional s1¸ million in January zo1o.
Michigan is the ?rst state that received federal funds through the State Small Business Credit Initiative
(ssnci), part of the Small Business Jobs Act signed into law in September zo1o, and was awarded approximately
s;,.1 million to back small business loans. Te goal of the federal program is to help small businesses obtain
loans of at least s1o for every one dollar the state provides in support. In May zo11, the MSF Board approved
the SSBCI program, which is essentially a federal version of the Michigan Supplier Diversi?cation Fund, named
the Michigan Business Growth Fund (rnor). Te board also approved allocation of the SSBCI funds for the
program. Te MBGF is designed to be ?exible and allow a majority of the funds provided by the SSBCI to adjust
as the banking environment in Michigan changes. Te fund was established to operate the Collateral Support
Program (rnor-csv) and Loan Participation Program (rnor-ivv).
MSDF AND MBGF LOANS
Fiscal Year 2011 (10/01/2010–09/30/2011)
Company County Type Total loan MSF support
MSDF-MCSP
Be Cool, Inc. Bay MSDF-MCSP s¸oo,ooo szoo,ooo
Be Cool, Inc. Bay MSDF-MCSP s¡oo,ooo s1,¸,ooo
Kirtland Products Charlevoix MSDF-MCSP s¸,8oo,ooo s1,¡8¡,1¸z
Michigan Pipe and Valve—Lansing, Inc. Eaton MSDF-MCSP sz,;¸o,ooo s¸oo,ooo
Ryan & Kovich Properties, LLC Genesee MSDF-MCSP s¡,o,ooo s1¸o,ooo
Launch Support SpecialistsiAutomation
Movers International, Inc.
Genesee MSDF-MCSP s1,;¸o,ooo s¸¸o,ooo
Michigan Pipe and Valve—Flint Genesee MSDF-MCSP sz,ooo,ooo s¡oo,ooo
Michigan Pipe and Valve—Traverse City Grand Traverse MSDF-MCSP s1,ooo,ooo s¸z¡,¸¸o
Microline Technologies Grand Traverse MSDF-MCSP s1,ooo,ooo s¡,o,ooo
Tellurex Grand Traverse MSDF-MCSP s1,ooo,ooo s¡,o,ooo
Tran Tek Automation Grand Traverse MSDF-MCSP s1,¸oo,ooo s¸oo,ooo
S S & SiMantissa Inc. Ingham MSDF-MCSP s¡;6,ooo sz¸¸,z¡o
Sponseller Electric Isabella MSDF-MCSP s¸¸o,ooo sz6o,ooo
Full Spectrum Jackson MSDF-MCSP sz,¸¸z,ooo s1,z¸o,ooo
Firstronic, LLC Kent MSDF-MCSP s;¸o,ooo s¸oo,ooo
LDM LLC UMP Macomb MSDF-MCSP s8¸o,ooo szz;,¸oo
Silver Creek Manufacturing Muskegon MSDF-MCSP s1,z¸o,ooo s61z,¸oo
Year-end Report to the Legislature / FY 2011 / 6
MEDC FY 2011
MSDF AND MBGF LOANS continued
Fiscal Year 2011 (10/01/2010–09/30/2011)
Company County Type Total loan MSF support
W.M. Tube & Wire Form Muskegon MSDF-MCSP s6¸,ooo s¸1,8¸o
Brasco Oakland MSDF-MCSP s1,8oo,ooo s¸¸,,ooo
Paramount Precision Oakland MSDF-MCSP sz,6¡¸,ooo s1,ooo,ooo
ITB Packaging Ottawa MSDF-MCSP s6zo,ooo s¸o¸,8oo
Reeves Plastics, LLC Ottawa MSDF-MCSP s¡oo,ooo s1,,,ooo
Mistequay Saginaw MSDF-MCSP s¸,¸o¸,¡o6 s¡,,,ooo
Derona-Shar, LLC Wayne MSDF-MCSP s¡¸o,ooo s18o,¸oo
Ernest Acquisitions Wayne MSDF-MCSP s1,¸oo,ooo szz¡,ooo
M & L Industrial Properties, LLC Wayne MSDF-MCSP s¸zz,ooo sz¸¸,ooo
RBL ProductsiRBL Plastics Wayne MSDF-MCSP s¸¸o,ooo s1z¸,ooo
Celtic Properties, LLC Wayne MSDF-MCSP sz¸o,ooo s1zz,¸oo
Total MSDF-MCSP $34,523,406 $11,246,392
MSDF-MLP
Vantage Plastics Arenac MSDF-MLPP s¡o6,ooo s1,8,,¡o
JA Foodservice Berrien MSDF-MLPP s6oo,ooo s1z¡,ooo
Maverick Jackson MSDF-MLPP s8oo,ooo s¸,z,ooo
Kalkaska Screw Products Kalkaska MSDF-MLPP s¡;z,ooo sz¸¸,¸z8
Breckenridge Capital, LLC Oakland MSDF-MLPP s¸¸o,ooo s1;1,¸oo
Scienti?c Brake Saginaw MSDF-MLPP s1,ooo,ooo s¡,o,ooo
Scienti?c Brake Saginaw MSDF-MLPP s1,z¸o,ooo s¸oo,ooo
Mol-Son, LLC Van Buren MSDF-MLPP s,,¸oo,ooo sz,¸oo,ooo
Petter Investments Van Buren MSDF-MLPP s8oo,ooo s¸,z,ooo
Total MSDF-MLPP $15,178,000 $5,003,968
MBGF-CSP
Te SpaBath Company, LLC Grand Traverse MBGF-CSP s;z¸,ooo s¸¸¸,z¸o
James Burg Trucking Company Macomb MBGF-CSP s¡,,z¸,ooo s1,zoo,ooo
Total MBGF-CSP $5,650,000 $1,555,250
MBGF-LPP
Manistique Papers, Inc. Schoolcraft MBGF-LPP s¡,1¡z,88, sz,ooo,ooo
Manistique Papers, Inc. Schoolcraft MBGF-LPP s1,¸¸¸,¸¡8 s¸oo,ooo
PEP Stations, LLC Wayne MBGF-LPP s;¸o,ooo s¸;¡,z¸o
Total MBGF-LPP $6,226,237 $2,874,250
Year-end Report to the Legislature / FY 2011 / 7
MEDC FY 2011
SMALL BUSINESS CAPITAL ACCESS PROGRAM LOANS
Te Small Business Capital Access Program (snc»v) is a loan enhancement program that helps small businesses
to acquire ?nancing through lending institutions that might otherwise be unavailable. SBCAP operates on a
pooled reserve concept in which a reserve account at each participating bank protects each enrolled loan under
the program. Te reserve account is funded through one-time premium charges paid in equal parts by the
borrower and the lender, plus the sum of those charges will be matched by the Michigan Strategic Fund. Tis
reserve, which grows with each subsequent loan, will o?set any future losses incurred by the lender. Te success
of Michigan’s SBCAP program, which was the ?rst of its kind, inspired other states to copy the program.
SBCAP LOANS
Fiscal Year 2011 (10/01/2010–09/30/2011)
Month Loans enrolled
Total amount of
loans enrolled
MSF reserve
contribution
Projected
new jobs
Projected
retained jobs
October 11 s6z,,6¸o sz¡,o,8 8 ;z
November 11 s¸1¡,6,¡ s1o,;88 1o ¸8
December z6 s1,o,¸,;¸8 s¸6,zz¸ ¡1 111
January ¸¸ s¡,1oz,,o, s1¸¸,z¸; 8; ¡zz
February ¸ sz,,,z;1 s,,o¸o ¸ ;
March z; s1,86,,6¸¸ s¸,,6o, ¸, ¡1;
April ¡1 sz,¸8¸,¸z; s;,,¸;1 8; 18z
May z; s1,,6z,8zz s61,1;¸ 111 zo8
June 1¡ s;z8,61; szz,6o, ¸6 6¡
July z8 s1,6o,,o61 s¸1,¸¸8 z¸ 11¸
August ¸ s1¸o,ooo s6,1¸o ¸ 8
September o so so o o
Total 246 $15,347,942 $495,870 452 1,642
Year-end Report to the Legislature / FY 2011 / 8
MEDC FY 2011
SBCAP LOAN RECIPIENTS
Fiscal Year 2011 (10/01/2010–09/30/2011)
Company name City County Industry
Gnegy Dental Associates Allegan Allegan o?ces and clinics of dentists
Quantum Construction Company Douglas Allegan management services
Zing EatiDrink Holdings, LLC Douglas Allegan eating places
Te White House, LLC Fennville Allegan drinking places (alcoholic beverages)
1st Choice Trucking Hamilton Allegan trucking, except local
Alle Rue No 133, Inc. Saugatuck Allegan piece goods, notions and other dry goods
David Langley and June Springs Saugatuck Allegan hotels and motels
Ray Pag Saugatuck Allegan eating places
Osbaldo F. Henderson and Holly L. Henderson Shelbyville Allegan nondurable goods
Gun Lake Repair and Detail, Inc. Wayland Allegan general automotive repair shops
Endoscopy Repair Specialists Inc. Hastings Barry repair shops and related services
JK Rose Construction, LLC Hastings Barry general contractors-single family houses
Michael I Hallifax dba Hallifax Services Hastings Barry lawn and garden services
Rivergate Family Campground, LLC Hastings Barry recreational vehicle parks and campsites
Action Leasing, LLC Auburn Bay
operators of residential mobile home
sites
Ashly Bailey Family Dentistry, PLC Bay City Bay o?ces and clinics of dentists
Marc Coleman dba Shields Fire Protection Bay City Bay welding repair
Wieland Sales, Inc. Bay City Bay automotive dealers
Peter Miller dba Buzz n Blades Turf Service Essexville Bay lawn services
Aleksandr & Dreychan Lake Ann Benzie local trucking without storage
J.B.M. Enterprises Benton Harbor Berrien general automotive repair shops
Kaz Enterprises Benton Harbor Berrien drinking places (alcoholic beverages)
Rudolf D. Ronto and Wendy L. Ronto Berrien Center Berrien o?ces and clinics of dentists
Wesley Ryan Kinsey and Brooke Roberts Coldwater Branch barber shops
William and DeAnne Hawley Coldwater Branch ornamental shrub and tree services
Macomber Welding & Fabricating, Inc. Dutton Caledonia metalworking machinery
Lorin M. Granger Battle Creek Calhoun insurance agents, brokers and service
Tennis Connection, Inc. Battle Creek Calhoun professional sports clubs and promoters
B & L Party Coolers, LLC Homer Calhoun nondurable goods
Frank T. BaueriAmerican Stall Rentals Marshall Calhoun equipment rental and leasing
American Stall Rentals, LLC Tekonsha Calhoun equipment rental and leasing
Jody She?er Dowagiac Cass video tape rental
Extraordinary Dental Practice, PLC East Jordan Charlevoix o?ces and clinics of dentists
Up North Home Inspector, LLC East Jordan Charlevoix
plumbing, heating equipment and
supplies (hydronics)
SMALL BUSINESS CAPITAL ACCESS PROGRAM LOANS
Year-end Report to the Legislature / FY 2011 / 9
MEDC FY 2011
SBCAP LOAN RECIPIENTS continued
Fiscal Year 2011 (10/01/2010–09/30/2011)
Company name City County Industry
Johnson Sport Shop
Drummond
Island
Chippewa sporting goods stores and bicycle shops
R & R Excavation Services, Inc. Pickford Chippewa excavation work
M Family Salon, Inc. Petoskey Emmet beauty shops
Jack Lands Davison Genesee miscellaneous retail stores
Sabo Properties, LLC and Bobby J. Grossi Flint Genesee o?ces and clinics of dentists
Crist Family Storage Lennon Genesee beef cattle, except feedlots
Lake Shore AFC Properties LLC Grawn Grand Traverse residential care
5 Star Directional Drilling Services, Inc. Kingsley Grand Traverse oil and gas wells directional drilling
GoLo, LLC Traverse City Grand Traverse commercial printing
In Home Health Care Services, Inc. Traverse City Grand Traverse home health care services
Mission Tool & Die Co. Traverse City Grand Traverse
special dies and tools, die sets, jibs and
?xtures and industrial molds
Safety Net, Inc. Traverse City Grand Traverse computer related services
Kelly Restaurants LLC Williamsburg Grand Traverse eating places
T.J. Campbell and Company Williamsburg Grand Traverse home furnishings
Amando A. Garcia dba Amando’s Service Alma Gratiot automotive repair shops
J&J Hirschman, LLCiHirsch Holdings, LLC Alma Gratiot metalworking machinery
Kids World News Too, Inc. Alma Gratiot
newspaper publishing, or publishing and
printing
Matthew and Mary Redman Alma Gratiot dairy farms
Phi L Le and Chi Jarquin-Le Alma Gratiot hotels and motels
Willow Creek Farms Trucking Ashley Gratiot local trucking without storage
Bruce Waldron Excavating, Inc. Elwell Gratiot special trade contractors
Chris & Maria Buerge Ithaca Gratiot eating places
Edward L. TayloriTaylor Services Ithaca Gratiot operators of nonresidential buildings
Ithaca Chevrolet Ithaca Gratiot motor vehicle dealers (new and used)
Victor Flegel and Tina FlegeliPencil Craft, LLC Ithaca Gratiot wood products
Brian S. WoodiDiscount Dumpster St. Louis Gratiot local trucking without storage
Richard L. Hayes II Sumner Gratiot local trucking without storage
Keith I and Dollie Vincent Camden Hillsdale corn
Hillsdale Aero, Inc. Hillsdale Hillsdale
airports, ?ying ?elds, and airport
terminal services
Lyle E. Gordon Hillsdale Hillsdale
water, sewer, pipeline, and
communications and power lines
Te Victorian Rose, LLC Hillsdale Hillsdale ?orists
Timothy J. Baker Hillsdale Hillsdale o?ces and clinics of optometrists
Terry Alan Ladd Jonesville Hillsdale
arrangement of transportation of freight
and cargo
Cindy L. Paletis and Matthew A. Paletis Litch?eld Hillsdale retail bakeries
Year-end Report to the Legislature / FY 2011 / 10
MEDC FY 2011
SBCAP LOAN RECIPIENTS continued
Fiscal Year 2011 (10/01/2010–09/30/2011)
Company name City County Industry
John Keith Wireman Litch?eld Hillsdale cash grains
S.D. Powers Trucking Litch?eld Hillsdale trucking, except local
Christopher Allen Bad Axe Huron sporting goods stores and bicycle shops
Biophotonic Solutions East Lansing Ingham optical instruments and lenses
Dallas H. and Katherine Henney Leslie Ingham ?eld crops, except cash grains
Charles R. Barker, Jr. D.O. Family Services Belding Ionia o?ces and clinics of doctors of medicine
West Michigan Fab Corporation Belding Ionia fabricated metal products
Snyder Asphalt, Inc. Saranac Ionia highway and street construction
M.D. Refrigeration, LLC Lake Isabella Isabella plumbing, heating and air conditioning
Ryan C. GreeniGreen Insurance Agency Mt. Pleasant Isabella insurance agents, brokers and service
S & K Food Pride, Inc. Rosebush Isabella groceries, general line
J Hill Services, LLC Grass Lake Jackson
arrangement of transportation of freight
and cargo
Choice Auto Sales of Jackson Jackson Jackson motor vehicle dealers (used only)
Bond Tool & Engineering, Inc. Kalamazoo Kalamazoo industrial organic chemicals
Case Management of Michigan Kalamazoo Kalamazoo o?ces and clinics of doctors of medicine
Doug Dodson Kalamazoo Kalamazoo operators of nonresidential buildings
Harrison Packing Co., Inc. Kalamazoo Kalamazoo
canned fruits, vegetables, preserves, jams
and jellies
Kalamazoo PS, LLC Kalamazoo Kalamazoo eating places
Lucky 13 Moving, LLC Kalamazoo Kalamazoo local trucking with storage
Redline Manufacturing, Inc. Kalamazoo Kalamazoo
industrial and commercial machinery
and equipment
Steven K. Ray Kalamazoo Kalamazoo o?ces and clinics of dentists
Te Victorian Bakery Kalamazoo Kalamazoo bread and other bakery products
Western Diversi?ed Plastics, LLC Kalamazoo Kalamazoo
precision plastic components and electro
mechanical components
RJ Saline, Inc. Portage Kalamazoo insurance agents, brokers and service
Shoreline Chiropractic Wyoming Kalamazoo o?ces and clinics of chiropractors
Stuart Orr Ada Kent physical ?tness facilities
Caledonia Tree Service, Inc. Alto Kent lawn and garden services
Landscape Impressions Design & Garden Caledonia Kent lawn and garden services
Vertical Paradise Farms Caledonia Kent food crops grown under cover
Advantage Mechanical Refrigeration, Inc. Comstock Park Kent plumbing, heating and air conditioning
Advanced Concepts Compounding Grand Rapids Kent local trucking without storage
Alpine Fitness, LLC Grand Rapids Kent physical ?tness facilities
Boss Electro Static, Inc. Grand Rapids Kent coating, engraving, and allied services
Canal Street Brewing Co. Grand Rapids Kent wines, brandy, and brandy spirits
Chaser Apparel Grand Rapids Kent apparel
Core Technologies, LLC Grand Rapids Kent computer related services
Year-end Report to the Legislature / FY 2011 / 11
MEDC FY 2011
SBCAP LOAN RECIPIENTS continued
Fiscal Year 2011 (10/01/2010–09/30/2011)
Company name City County Industry
Grand Rapids Metaltek Grand Rapids Kent repair shops and related services
Hee Ja Oh dba Plain?eld Party Store Grand Rapids Kent liquor stores
J. Russo Enterprises Grand Rapids Kent miscellaneous food stores
JTR Transportation Grand Rapids Kent local trucking without storage
Point Transport, LLC Grand Rapids Kent trucking, except local
Queen Bee Quilt Shoppe, LLC Grand Rapids Kent apparel and accessories
Saul Munoz, Roberto Munoz and Maria Pere Grand Rapids Kent eating places
Superior Press and Automation Grand Rapids Kent
oil and gas ?eld machinery and
equipment
Treads & Sleds dba Grand Rapids Power Co. Grand Rapids Kent automotive dealers
Water Speci?cations Inc. Grand Rapids Kent water supply
Watersnap, LLC Grand Rapids Kent physical ?tness facilities
No?singer, LLC Grandville Kent insurance agents, brokers and service
Gymco, Inc. Kentwood Kent physical ?tness facilities
Preferred Construction Group LLC Kentwood Kent management services
Rockford Operation Kentwood Kent child day care services
Selvedin Kmetas Kentwood Kent trucking, except local
Studio 2 Digital Dental Design, Inc. Kentwood Kent dental laboratories
Brainard Enterprises, Inc. Rockford Kent special trade contractors
G R Twin Properties Rockford Kent eating places
Kelley’s Animal Clinic, P.C. Walker Kent veterinary services for animal specialties
Electric by Lakestate, Inc. Wyoming Kent electrical work
Gerald Rose Wyoming Kent professional equipment and supplies
Ross and Sharon Tuttle Wyoming Kent local trucking without storage
Shoreline Chiropractic Wyoming Kent o?ces and clinics of chiropractors
White Glove Cleaning and Maintenance Wyoming Kent
building cleaning and maintenance
services
David R. Smith Baldwin Lake general contractors-single family houses
Mathew J. Manier Branch Lake repair shops and related services
Northern Destiny Investments Luther Lake grocery stores
Northern Michigan Temporary Services, Inc. Luther Lake special trade contractors
Triple D Orchards Empire Leelanau crop preparation services for market
SVH Employment, LLC Hudsonville Lenawee coin-operated laundries and dry cleaning
Chakradhar C. Reddy
Clinton
Township
Macomb o?ces and clinics of doctors of medicine
Jamie Yang dba Village Cleaners
Clinton
Township
Macomb coin-operated laundries and dry cleaning
Dynamic Polymer Solutions Fraser Macomb sheet metalwork
Robert J. Inc. Macomb Macomb motor vehicle dealers (used only)
Contract Milling Services, Inc. Roseville Macomb screw machine products
Year-end Report to the Legislature / FY 2011 / 12
MEDC FY 2011
SBCAP LOAN RECIPIENTS continued
Fiscal Year 2011 (10/01/2010–09/30/2011)
Company name City County Industry
J & J Spring Enterprises, LLC
Shelby
Township
Macomb bolts, nuts, screws, rivets and washers
Pioneer Plastics Inc.
Shelby
Township
Macomb plastics products
Service 1st Maintenance, LLC
Shelby
Township
Macomb
building cleaning and maintenance
services
Drive Enterprise, LLC St. Clair Shores Macomb excavation work
24-7 Battery Systems, LLC Warren Macomb auto and home supply stores
Rocket Enterprise, Inc. Warren Macomb nondurable goods
Maximum Management, Inc. Washington Macomb eating places
Satnaamjc Inc. & Satnaam, LLC Wellston Manistee hotels and motels
Armato Electric, Inc. Big Rapids Mecosta general contractors-residential buildings
H & H Wildlife Design Fur Dressing, Inc. Mecosta Mecosta
leather tanning and ?nishing i mens and
and boys clothing and accessories
RTG Transport, LLC Morley Mecosta local trucking without storage
Stephen L. & Becki J. Lente Rodney Mecosta o?ces and clinics of health practitioners
180 Designs, LLC Stanton Mecosta commercial art and graphic design
Dare Investigations, LLC Midland Midland
detective, guard and armored car
services
JA Ho?man Family, LLC Midland Midland eating places
Jack Pine Production, Inc. Midland Midland
motion picture and video tape
production
McB & MLB Properties Midland Midland operators of nonresidential buildings
Midland Sleep Central, LLC Midland Midland miscellaneous retail stores
Mid Michigan Logging Lake City Missaukee logging
Andrew Braman dba DNE Edmore Montcalm local trucking without storage
Mulholland Enterprises, LLC Greenville Montcalm business services
Tree Seasons Campground, Inc. Greenville Montcalm recreational vehicle parks and campsites
Brigham Funeral Chapel, PLC Six Lakes Montcalm funeral homes
Alan and Shannon Buskirt Stanton Montcalm trucking, except local
Circle B Acres Stanton Montcalm dairy farms
Git-R-Dun Trucking, LLC Stanton Montcalm local trucking without storage
Cory Pendrick & Katie Walbridge Muskegon Muskegon coin-operated laundries and dry cleaning
Fatboy’s Gallery of Tattoo Art, LLC Muskegon Muskegon miscellaneous personal services
Hartshorn Holdings, LLC Muskegon Muskegon eating places
MTA LandiMuskegon Tire
North
Muskegon
Muskegon motor vehicle parts and accessories
Aesthetic Dentistry by DiPilla, PC Birmingham Oakland o?ces and clinics of dentists
Mills Pharmacy & Apothecary, LLC Birmingham Oakland drug stores and proprietary stores
Year-end Report to the Legislature / FY 2011 / 13
MEDC FY 2011
SBCAP LOAN RECIPIENTS continued
Fiscal Year 2011 (10/01/2010–09/30/2011)
Company name City County Industry
Roman Electrical Co. Clarkston Oakland electrical work
Springbrook Sub, LLC
Commerce
Township
Oakland variety stores
J&R Industries, Inc.
Farmington
Hills
Oakland home furnishings
Sneaker Station, Inc. Highland Oakland women’s accessory and specialty stores
Dolce Panetteria Foods, LLC Lake Orion Oakland bread and other bakery products
Outbound Technologies Incorporated New Hudson Oakland engineering services
Financial Future Management Novi Oakland loan brokers
Luma Resources Rochester Hills Oakland
heating equipment, except electric and
warm air furnaces
Marconi Brothers, LLC Rochester Hills Oakland eating places
Michael J. Golding South?eld Oakland legal services
AAL Enterprises, LLC Waterford Oakland coin-operated laundries and dry cleaning
AAA Underground, Inc.
West
Bloom?eld
Oakland water well drilling
Wroten & Associates, P.C. Wixom Oakland
accounting, auditing, and bookkeeping
services
Wild Bill’s ATVs, Inc. Mears Oceana coin-operated amuses devices
J & J Spring Enterprises, LLC Shelby Oceana bolts, nuts, screws, rivets and washers
Patricia J. Brown dba Pizza Factory Shelby Oceana eating places
Brian E. Rehkopf dba BBR Mobile Reed City Osceola special trade contractors
Rouse Transport, LLC Reed City Osceola transportation services
Big to Small Delivery Service Tustin Osceola trucking without storage
ADL Home Care Inc. Holland Ottawa residential care
Central Park Grocery, LLC–LOC Holland Ottawa grocery stores
Dykstra Drug Store Holland Ottawa drug stores and proprietary stores
Exinent, LLC Holland Ottawa business consulting services
Advanced CNC Machining, LLC Hudsonville Ottawa
industrial and commercial machinery
and equipmentimetal doors, sash,
frames, molding and trim
Bissell Painting Jenison Ottawa painting and paper hanging
KL Tools, LLC West Olive Ottawa automotive repair shops
Kathleen Haveman Zeeland Ottawa trucking, except local
Primera Plastics, Inc. Zeeland Ottawa
plastics materials, synthetic resins, and
nonvulcanizable elastomers
Jen’s Lens Photography, Inc. Merrill Saginaw photographic studios, portrait
James Gi?n Saginaw Saginaw trucking, except local
Karl J. Weyand III and Allison E. Weyand Saginaw Saginaw miscellaneous personal services
Midwest Marketing, Inc. Saginaw Saginaw hardware
Year-end Report to the Legislature / FY 2011 / 14
MEDC FY 2011
SBCAP LOAN RECIPIENTS continued
Fiscal Year 2011 (10/01/2010–09/30/2011)
Company name City County Industry
Scott Krugielka dba Rightway Remediation Saginaw Saginaw special trade contractors
L & S Tree Moving Mendon St. Joseph
forest nurseries and gathering of forest
products
Bangor Land Holding, LLC Bangor Van Buren residential care
Beacon Specialized Living Services, Inc. Bangor Van Buren residential care
Peter W. Fritz and Joshua Fritz Gobles Van Buren equipment rental and leasing
Preferred Providers, Inc. Ann Arbor Washtenaw home health care services
Te Lodge of Quincy Real Estate Company Ann Arbor Washtenaw intermediate care facilities
Animal Regenerative Care Center PLLC Chelsea Washtenaw testing laboratories
Anthony P. and Vivian R. Frudakis Saline Washtenaw corn
Fifth Avenue Liquor Spot, Inc. Detroit Wayne grocery stores
Pony Enterprises, Inc. Detroit Wayne liquor stores
Andrea Shameti Livonia Wayne trucking, except local
Custom Designed Security, Inc. Livonia Wayne security systems services
Dawood Inc. dba Brass Mug Liquor Livonia Wayne grocery stores
Pizza Czars Livonia Wayne eating places
Center Street Wealth Strategies, LLC Northville Wayne investment advice
Sole Construction, Inc. Westland Wayne water well drilling
JSJJA Enterprises, Inc. Woodhaven Wayne eating places
Mahnke Machine Cadillac Wexford machine shop
Nelson Logging, Inc. Cadillac Wexford logging
Year-end Report to the Legislature / FY 2011 / 15
MEDC FY 2011
FOLLOW-ON FUND
To maximize the economic impact of the portfolio of investments the MEDC manages on behalf of dollars
distributed through historical and current programs, including but not limited to the z1st Century Jobs
Fund, Michigan Life Sciences Corridor, Michigan Technology Tri-Corridor, and Pre-Seed Funds (Portfolio
Companies), a s6 million Follow-On Fund was created in zoo, to ?ll a critical gap currently existing in the
marketplace.
Tese funds assist portfolio companies to move to a stage where commercial opportunities (e.g. licensing,
seed or equity funds) can be secured. Funds can support further scienti?c and technical development of an
idea as well as activity gauged towards improving an intellectual property position, market research, potential
licensees, joint ventures and venture ?nancing. Te fund is intended to bridge the gap between traditional
research grants, angel and pre-seed investments to commercial funding by supporting the very early stage of
turning research outputs into a commercial proposition.
FOLLOW-ON FUND LOANS
Fiscal Year 2011 (10/01/2010–09/30/2011)
Company name City County
Loan
amount Project highlights
Armune BioScience, Inc. Kalamazoo Kalamazoo s¸oo,ooo Armune BioScience was formed to develop and
commercialize high value, protein signature-
based diagnostic tests for prostate, lung and
breast cancers that will allow physicians and
patients to make better treatment decisions.
Tolera Terapeutics, Inc. Kalamazoo Kalamazoo s¸oo,ooo Tolera Terapeutics is developing novel
therapies and technologies, to o?er patients and
their doctors, targeted and safer solutions, for
immune modulation and related medical needs.
3D Biomatrix, Inc. Ann Arbor Washtenaw s¡1¸,ooo ¸D Biomatrix provides three dimensional (¸D)
cell culture plates and sca?olds (matrices).
Its ¸D cell culture solutions boost life
sciences research and drug discoveryitesting
applications by providing life-like results. Cells
grown on ¸D Biomatrix products have been
shown to retain a much higher complexity of
body response than traditional zD cell cultures.
Arbor Photonics, Inc. Ann Arbor Washtenaw s¸oo,ooo Arbor Photonics is developing highly reliable
?ber lasers that feature an unmatched
combination of beam quality and optical power.
Its proprietary ?ber platform technology
expands the limits of single-mode laser
performance to hundreds of watts of average
pulsed power and multi-kilowatts of continuous
wave optical power. Tese lasers can enable
dramatic improvements in throughput
and processing speed in microelectronics
manufacturing, solar cell processing and
industrial materials processing applications.
Year-end Report to the Legislature / FY 2011 / 16
MEDC FY 2011
FOLLOW-ON FUND LOANS continued
Fiscal Year 2011 (10/01/2010–09/30/2011)
Company name City County
Loan
amount Project highlights
Gema Diagnostics Ann Arbor Washtenaw sz¸o,ooo Gema Diagnostics is a venture-backed
molecular diagnostics company developing
applications to dramatically improve clinical
outcomes in in vitro fertilization (ivr). Gema
has designed an oocyte screening technique
as a diagnostic service which uses a genetic
“pregnancy signature” to identify the most
viable oocytes prior to fertilization.
Solidica, Inc. Ann Arbor Washtenaw s¸oo,ooo Solidica provides sensor network and
fabrication solutions to military, automotive,
aerospace, industrial, and consumer product
industries. Te company’s mission is to be the
world’s leading provider of next generation
ruggedized smart sensor networks linking
physical parameter monitoring to customers’
knowledge systems—delivering enhanced
product di?erentiation, improved safety and
control, visibility and pro?table outcomes.
Total $2,665,000
Year-end Report to the Legislature / FY 2011 / 17
MEDC FY 2011
SMALL BUSINESS INVESTMENT TAX CREDIT
Te Small Business Investment Tax Credit (sni:c) program allows a taxpayer that makes a quali?ed investment
after December ¸1, zo1o, and before January 1, zo1z, in a quali?ed business to claim a tax credit imposed by
the Income Tax Act equal to z¸ percent of the quali?ed investment made during the tax year, as described in
MCL zo6.z;8. Te SBITC is intended to incent angel investors to invest in Michigan-based innovative seed and
early-stage companies. Te bene?ts of this program are shared by the small businesses, investors, employees,
and the state’s economy. Michigan businesses can more readily obtain the capital needed to grow, and investors
are better able to manage the risk associated with investing in early stage businesses and novel technologies.
Te state bene?ts by the larger number of investments which support the growth of emerging businesses and
ultimately create jobs. In zo11, the Michigan Legislature shortened the timeframe in which to make quali?ed
investments under the program from January 1, zo1¸, to January 1, zo1z.
Since its inception, the program has generated the following aggregate results:
Registered Investment Groups: ¸8 (angel or venture capital groups that have registered with the Michigan
Strategic Fund in order to utilize the program)
Investors approved for tax credits: ¸¡
Quali?ed businesses that have received investments: 11
Total tax credits approved: s68o,6z¡
Total quali?ed investments: sz,6;z,¸o1
Additional leverage on quali?ed investments: s¸,zo¡,oo1
Leverage ratio: 8.6:1 (private investment to total tax credits)
Year-end Report to the Legislature / FY 2011 / 18
MEDC FY 2011
EARLY STAGE FUNDING AND
ENTREPRENEURIAL SUPPORT SERVICES
In April zo11, the Michigan Strategic Fund issued two Requests for Proposals (RFPs) for programs to aid
Michigan entrepreneurs in commercializing competitive edge technologies ?elds including alternative energy,
life sciences, homeland security and defense, advanced manufacturing and materials, agricultural processing,
information technology, and other innovative sectors.
Entrepreneurs: One RFP sought to enhance and sustain Michigan’s entrepreneurial ecosystem through
business acceleration services, business incubation, entrepreneurial talent development and early-stage business
counseling in competitive-edge technology sectors. Te MSF approved s1z million in funding for this initiative.
Early Stage: Te MSF also approved s1¸ million to fund a second RFP for an innovative Early Stage Seed
Capital Initiative. It solicited seed investment funds and non-pro?t entities that will provide capital to new
companies during the investigation and feasibility phases of innovation and technology development.
Forty-one applications were received and reviewed by 1, independent peer review experts. In July zo11, a total
of eight organizations received awards from the MSF (funding is for two to three years):
EARLY STAGE AND ENTREPRENEURIAL SUPPORT SERVICES AWARDS
Fiscal Year 2011 (10/01/2010–09/30/2011)
Organization City County Description
Award
amount
Great Lakes
Entrepreneurs Quest
(GLEQ)
Lansing Ingham Statewide annual business plan
competition that provides a network of
volunteer coaching, investor talent, and
entrepreneurial support programs for
early stage companies.
s1,o8o,ooo
(vso)
Biosciences Research
& Commercialization
Center (BRCC) of
Western Michigan
University
Kalamazoo Kalamazoo Statewide pre-seed fund that will invest in
life science start-ups.
s¸,8¸o,ooo
(vsr)
Michigan Small
Business & Technology
Development Center
(SBTDC)
Grand
Rapids
Kent Business Accelerator Fund, a fund
that can be accessed by participating
business accelerators statewide to provide
specialized business acceleration services
and resources regardless of their client’s
geography.
s¸,¸¸z,,¸;
(vso)
Ann Arbor Spark Ann Arbor Washtenaw Pre-Seed Capital Fund: A statewide co-
investment program in collaboration with
all Michigan SmartZones that makes
investments in pre-seed stage companies,
Accelerate Michigan Innovation
Competition, an annual business
competition that awards s1 million in
cash prizes to start-up and emerging
companies, and the Michigan Angel Fund,
a new fund that will invest in Michigan
start-up companies.
s,,1;o,ooo
(vsr)
s1,6¸o,ooo
(vso)
Year-end Report to the Legislature / FY 2011 / 19
MEDC FY 2011
EARLY STAGE AND ENTREPRENEURIAL SUPPORT SERVICES AWARDS continued
Fiscal Year 2011 (10/01/2010–09/30/2011)
Organization City County Description
Award
amount
Biotechnology Business
Consultants (BBC)
Ann Arbor Washtenaw Statewide support for Michigan
companies to secure funding through
federal Small Business Innovation
Research (SBIR) and Small Business
Technology Transfer (STTR) programs.
s1,¸;¸,ooo
(vso)
Michigan Venture
Capital Association
(MVCA)
Ann Arbor Washtenaw Entrepreneur-in-Residence and CEO
placement programs, to improve talent in
entrepreneurial companies, the Michigan
Venture Fellows program, to develop
talent for Michigan venture capital ?rms,
and the Angel Network Growth program,
to strengthen angel investment networks
across the state.
s¸,o68,8¡6
(vso)
Detroit Creative
Corridor Center
Detroit Wayne Creative Producers, a program that will
deliver targeted business acceleration
services to early and second stage
businesses in the digital and media
production ?elds.
s¸;¸,ooo
(vso)
Inforum Center for
Leadership
Detroiti
Grand
Rapids
Waynei
Kent
Implementation of two programs
focused on high-growth women
entrepreneurs: ACTiVATE, a technology
commercialization curriculum, and Astia,
a global network of mentors and investors.
s;18,1,;
(vso)
Total $25,000,000
ESF =Early stage fund
ESG = Entrepreneurial support grant
Year-end Report to the Legislature / FY 2011 / 20
MEDC FY 2011
BUSINESS INCUBATOR AWARDS
In September zo1o, the Michigan Legislature appropriated s1.¸ million to the business incubator program
through the Michigan Strategic Fund (rsr). Te enabling legislation (HB ¸88oizo1o PA 1,1) directs the MSF
Board to distribute the funds on a competitive basis to one business incubator program in each of the following
counties and cities: Houghton, Isabella, Kalamazoo, Kent, Macomb, Muskegon, Oakland and Washtenaw
counties, in a city with a population greater than ;¸o,ooo (Detroit) and in a city with a population in the zooo
census between 11,,ooo and 1zo,ooo and that experienced a population loss between 8.o percent and ,.o
percent between the 1,,o and zooo census (Lansing).
Te MSF Board approved the following 1o proposals to receive awards under the business incubator RFP,
contingent upon the execution of a contract with terms and conditions agreed to by the MSF and the awardee:
BUSINESS INCUBATOR AWARDS
Fiscal Year 2011 (10/01/2010–09/30/2011)
Incubator applicant Incubator City County
Award
amount
Michigan Tech
Enterprise Corporation
MTEC SmartZone Houghton Houghton s1oo,ooo
Lansing LDFA LansingiEast Lansing LDFAiSmartZone
Lansingi
East Lansing
Ingham s1oo,ooo
Central Michigan
University
CMUiResearch Corporation
Mount
Pleasant
Isabella s1oo,ooo
Kalamazoo SmartZone Southwest Michigan Innovation Center Kalamazoo Kalamazoo s1oo,ooo
Grand Valley State
University
West Michigan Science & Technology
Initiative (WMSTI)
Grand Rapids Kent s1oo,ooo
Oakland University Macomb OU Incubator
Sterling
Heights
Macomb sz¸o,ooo
Grand Valley State
University
Michigan Alternative and Renewable
Energy Center (MAREC)
Muskegon Muskegon $100,000
Automation Alley Automation Alley Troy Oakland sz¸o,ooo
Ann Arbor SPARK Spark East Incubator Ypsilanti Washtenaw s1oo,ooo
Detroit Creative
Corridor Center
DCCC Detroit Wayne s1oo,ooo
Total $1,300,000
Year-end Report to the Legislature / FY 2011 / 21
MEDC FY 2011
EMERGING TECHNOLOGIES FUND
Te Michigan Emerging Technologies Fund (v:r) is designed to expand funding opportunities for Michigan
technology based companies in the federal innovation research and development arena. Te Michigan
Small Business & Technology Development Center (ri-sn
c) in partnership with the Michigan Economic
Development Corporation (rvoc), is dedicating up to s1.¡ million annually to match federal SBIRiSTTR°
funding opportunities for exceptional research and technical innovation generated in Michigan.
Te Michigan ETF will match z¸ percent of phase I SBIRiSTTR awards up to sz¸,ooo, and z¸ percent of
phase II SBIRiSTTR awards up to s1z¸,ooo. Te ETF awards will come in the form of grants and do not need
to be paid back, however, ETF award dollars must be used to help bring projects to commercialization in
Michigan.
Companies must leverage a third party match to be eligible for ETF awards. Before submitting an SBIRi
STTR proposal to the federal government, an applicant must ?rst secure a matching commitment from the
MI-SBTDC. Preference will be given to applicants who demonstrate signi?cant commercialization potential.
Te Michigan Legislature appropriated s1.¡ million through the Michigan Strategic Fund (MSF) to the
MI-SBTDC to be used for the SBIRiSTTR grant or loans matching program for ?scal year zo11. Te MSF Board
approved allocation of the s1.¡ million in January zo11. Te MSF approved a similar appropriation for ?scal
years zoo;, zoo8, zoo, and zo1o. Over s¡.¸ million of the funds have been tentatively committed to 81 projects
with the following breakdown:
Phase I awards ¡;
Phase II awards ¸¡
ETF funds disbursed s¡,¸;o,o;¡
ETF funds set aside sz¡¸,ooo
ETF funds available s;8¡,,z6
SBIRiSTTR leverage s¸z,¸;6,8¡;
Tird party leverage sz8,;1o,1;;
Jobs created and retained 1,1
Additional ?nancing raised s¡o,¸,,,¡o6
*Te Small Business Innovation Research (SBIR) program is a United States government program, coordinated by the Small Business
Administration, in which 2.5 percent of the total extramural research budgets of all federal agencies with extramural research budgets in
excess of $100 million are reserved for contracts or grants to small businesses. Annually, the SBIR budget represents more than $1 billion
in research funds. Over half the awards are to ?rms with fewer than 25 people and a third to ?rms of fewer than 10. A ?fth are minority or
women-owned businesses. Historically, a quarter of the companies are ?rst-time winners.
Congress established the Small Business Technology Transfer (STTR) program in 1992. It is similar in structure to SBIR and funds
cooperative research and development projects with small businesses in partnership with not-for pro?t research institutions (such as
universities) to move research to the marketplace.
Te SBIR/STTR programs are structured in three phases. Phase I (project feasibility) determines the scienti?c, technical and
commercial merit and feasibility of the ideas submitted. Phase II (project development to prototype) is the major research and development
e?ort, funding the prototyping and demonstration of the most promising Phase I projects. Phase III (commercialization) is the ultimate goal
of each SBIR/STTR e?ort and statute requires that Phase III work be funded by sources outside the SBIR/STTR program.
Year-end Report to the Legislature / FY 2011 / 22
MEDC FY 2011
SMARTZONES/BUSINESS ACCELERATORS
In zooo, the Michigan Economic Development Corporation launched the Michigan SmartZone
sr
Network—
an innovative, statewide, technology business acceleration strategy to build entrepreneurial talent and
infrastructure. Today, Michigan is home to 1¸ SmartZones in distinct geographical locations, each anchored by
an academic institution and supported by the local communities.
Michigan’s designated SmartZones provide distinct geographical locations where technology-based ?rms,
entrepreneurs, and researchers locate in close proximity to all of the community assets that assist in their
endeavors. Michigan’s 1¸ SmartZones include technology business accelerators that provide various services
to help facilitate the commercialization of technology emerging from universities and private companies.
Accelerators mine technology from universities and private enterprise, assist companies and entrepreneurs in
building business structures around technology, conduct product development, and help companies secure
necessary start-up ?nancing. Te SmartZones also are home to incubation facilities providing o?ce and
wet lab space to technology companies. Results prove Michigan’s SmartZone program successfully spurs
entrepreneurship and economic growth. SmartZones have contributed over s1.; billion in public and private
investment in the state.
Below is a list of the 1¸ SmartZones:
1. MTEC SmartZone—Michigan Technological University
2. Sault Ste. Marie—Lake Superior State University
3. Michigan Alternative and Renewable Center—Grand Valley State University
4. Western Michigan Science & Technology Center—Cook-DeVos Center for Health Sciences
5. CMU Research Corporation—Central Michigan University
5a. Mount Pleasant SmartZone Satellite—Mid-Michigan Innovation Center
6. Lansing Regional SmartZone—Cities of East Lansing and Lansing, Ingham County,
Lansing Regional Chamber of Commerce, MBI International, Michigan State University, the
Michigan State University Foundation and the University Corporate Research Park
7. Southwest Michigan Innovation Center—Western Michigan University
8. Battle Creek Unlimited—Western Michigan University and Kellogg Community College
9. Jackson Technology Park—Baker College, Jackson Community College and Spring Arbor University
10. Ann Arbor SPARK—University of Michigan and Eastern Michigan University
11. Pinnacle Aeropark—Detroit Metropolitan Airport, Wayne County Economic Development
Growth Engine (EDGE)
12. TechTown—Wayne State University
13. OU INCubator—Oakland University - Rochester
14. Macomb INCubator—Oakland University - Macomb
15. Automation Alley—Lawrence Technological University and Oakland University
Year-end Report to the Legislature / FY 2011 / 23
MEDC FY 2011
MICHIGAN DEFENSE CENTER
Te mission of the Michigan Defense Center (roc) is to assist Michigan companies to identify and secure
federal contract opportunities in the defense and homeland security sectors. Te MDC works in close
partnership with Michigan defense companies, economic development partners, Procurement Technical
Assistance Centers (v:»cs), and federal agencies to analyze defense sector budgets, attract defense and
homeland security opportunities for Michigan, and assure that the contract pipeline remains continuous.
PTACs are a valuable partner of the MDC. Tey match the capabilities of Michigan companies with
government contract opportunities by preparing them to compete for government contracts and educating
them regarding the opportunities, requirements and process of becoming successful government contractors.
PTACs provide pre- and post-award assistance, helping companies through the entire procurement process
from registering as a government contractor and ?nding bid opportunities through proposal preparation and
post-award modi?cations. Te MDC works closely with the PTACs on speci?c contracting opportunities and
helps the PTAC o?ces assemble Michigan companies to meet the supply chain needs of prime contractors and
federal agencies. Te MDC team assists large defense programs at the federal and prime contractor levels, while
the PTACs aid supply chain companies who bene?t from awards at the subcontracting level.
Te PTACs of Michigan are not-for-pro?t organizations funded by the Defense Logistics Agency (DLA),
the Michigan Economic Development Corporation (MEDC) and local funding partners. In ?scal year zo11, the
MEDC provided s1.¸; million to support 1z PTAC o?ces, approximately ¸¸ percent of their annual operation
budgets. Prior to the MDC, the MEDC supported PTACs at much lower funding levels, typically around
s¡o,ooo per center annually.
In ?scal year zo11, the MDC and PTACs assisted Michigan companies to obtain federal, state, and local
contracts for a combined total of s1.o¸¸ billion (MDC: sz8; million, PTACs: s;6¸.8¸ million).
PTAC ANNUAL ACTIVITY REPORT
Fiscal Year 2011 (10/01/2010–09/30/2011)
Center
New
?rms
Value of contracts
(local/state/federal)
Number of
documented jobs*
Northwest Michigan Council of Governments (Traverse City) ¡¸ s16¸,z¡1,61o ¸,z6¸
Northeast Michigan Consortium (Onaway) z, sz¸,6,,,1zz ¡;¡
Muskegon Area First (Muskegon) 8¸ s¸;,o¸¸,¸6z 1,1¡1
Grand Rapids Procurement O?ceiMDC A?liate z¸ s¸6,¡¡o,;8o ;z,
Macomb Regional PTAC (Warren) 1¡o s11z,oz¸,¸8; z,z¡1
Saginaw Future, Inc. (Saginaw) ¸o s8z,¸¸¸,8¸o 1,6¸1
Genesee Regional Chamber of Commerce (Flint) ¸6 s¸¡,;¸z,¸,8 1,o,¸
Southwest Michigan Technical Assistance Center (Kalamazoo) 8; s;1,8z¡,,;¡ 1,¡¸6
Technical Assistance Center of South Central Michigan (Jackson) 111 s¸1,o¡8,;8¡ 6z1
Downriver Community Conference (Southgate) ;; s,,¸8¸,z;¸ 188
PTAC of Schoolcraft College (Livonia) 18, s8o,181,8¡1 1,6o¡
Wayne State University PTAC (Detroit) ;1 s¡¸,6zz,z1¸ 8;z
Total 939 $765,833,974 15,317
° Each PTAC o?ce sends surveys to their active clients on a quarterly basis. Te companies are asked to return their
surveys to report the dollar values and number of federal, state and local contracts awarded during the quarter. Tere
could potentially be an under-reporting of contract activity since not all surveys are returned. Te MEDC is working
with the PTACs to increase their survey responses.
**As a result of federal/state/local funding
Year-end Report to the Legislature / FY 2011 / 24
MEDC FY 2011
PTAC METRICS REPORT
Fiscal Year 2011 (10/01/2010–09/30/2011)
Center
Surveys
sent
Surveys
returned
% survey
return
Clients
awarded
?rst time
contracts
Clients
awarded ?rst
time defense
contracts
Clients
awarded
all
contracts
Clients
awarded
defense
contracts
Northwest Michigan Council of
Governments
¸1z z¸1 ¡,º 1¡ ¡ 66 ¸¸
Northeast Michigan Consortium ¸8¸ ¸8; 66º 1 - ¸, z¸
Muskegon Area First ;1, ¸;¸ ¸zº ¸ ¸ 66 ¸¡
Grand Rapids Procurement
O?ceiMDC A?liate
6¸z z¸z ¡oº 1z 6 ¸z zz
Macomb Regional PTAC 1,;81 ,1, ¸zº 8 ¸ 16z 1¸1
Saginaw Future, Inc. ¸,¡ 1,, ¸¡º ¸ z ¸8 z6
Genesee Regional Chamber of
Commerce
¡oo z¸6 6¡º 8 ¸ 116 ¸¡
Southwest Michigan Technical
Assistance Center
,16 66o ;zº , 6 ;, ¡1
Technical Assistance Center of
South Central Michigan
6,¸ ¡o¸ ¸8º 1z ¸ ;¡ ¸;
Downriver Community
Conference
6¡, z¸¡ ¸,º ¸ ¸ ¸, z1
PTAC of Schoolcraft College z,oz8 ,8z ¡8º ; ¸ 8o ¸;
Wayne State University PTAC 1,1;, ¡¸1 ¸;º 1¸ 1z ¡1 z6
Total 10,688 5,371 50% 99 52 852 527
PTACS OF MICHIGAN
Fiscal Year 2011 (10/01/2010–09/30/2011)
Grantee Grant amount Percent of PTAC total budget
Northwest Michigan Council of Governments s16o,6oo ¡8º
Northeast Michigan Consortium s;¸,ooo ¡¸º
Muskegon Area First s¸¸,ooo z6º
Macomb Regional PTAC s1,o,ooo ¸8º
Saginaw Future, Inc. s1o¡,ooo ¸¸º
Genesee Regional Chamber of Commerce sz16,ooo ,8º
Southwest Michigan TAC s1zo,ooo ¡¸º
TAC of South Central Michigan s1o¸,ooo ¸¡º
Downriver Community Conference s,¸,ooo 66º
PTAC of Schoolcraft College s1¸o,ooo ¸1º
Wayne State University PTAC s8¸,ooo ¸6º
Grand Rapids Procurement O?ce° sz1¸,ooo 1ooº
Total $1,568,600
*Te Grand Rapids Procurement O?ce is a MDC a?liate and does not receive funding from the Federal Defense Logistics Agency.
Year-end Report to the Legislature / FY 2011 / 25
MEDC FY 2011
EXPORT ASSISTANCE
Michigan is the nation’s eighth largest exporting state and global trade is responsible for thousands of jobs here.
Te MEDC has assembled an export team and is working across department and program lines to establish a
supportive service structure including ?nancial resources available to small businesses. Te MEDC’s export plan
was developed through collaboration with strategic export service providers including the U.S. Department
of Commerce, U.S. Small Business Administration, Michigan Small Business Technology & Development
Center, Michigan Department of Agriculture and Rural Development, and Michigan State University’s Center
for International Business Education and Research, along with Automation Alley and Van Andel Global Trade
Center. Te MEDC will coordinate a statewide export assistance delivery system with public and private
resources to ensure company access regardless of geographic location.
To support this mission, the Michigan Global Marketplace Program was developed to help moderate the
incremental costs over and above traditional costs of a standard line of credit for companies. Tis program
was established under the Michigan Business Growth Fund (rnor), which utilizes State Small Business Credit
Initiative federal funding to provide for various loan enhancements that induce and facilitate the provision of
traditional commercial loans to small and medium size businesses in Michigan. Te Michigan Global Marketplace
Program will use a small amount of public resources to defray the incremental cost di?erence between domestic
and foreign working capital loans. Tis will have a signi?cant impact on pro?t margins of the exporter by lowering
the weighted average cost of capital, which will induce entry and expansion into foreign markets making those
opportunities nearly equivalent to domestic sales opportunities in terms of the cost of capital. Eligible companies
may qualify for reimbursement of up to ;¸ percent of eligible costs which are directly related to ?nancing exports.
Because the program was recently launched, no loans were approved in ?scal year zo11.
Te Pure Michigan State Trade Export Promotion (s:vv) program will launch on October 1, zo11, to help
small and medium-sized businesses launch, expand and enhance exporting opportunities. Michigan companies
with fewer than ¸oo employees can qualify for ?nancial assistance for export-related activities. Launched by the
U.S. Small Business Administration, the program is designed increase the number of Michigan companies that
export and introduce current exporters to new foreign markets and buyers. Direct reimbursements to quali?ed
small and medium-sized export companies may be available to develop or expand export-related activities
through cost reimbursement of ¸o percent of allowable export-related activities. Eligible companies may qualify
for up to sz¸,ooo in assistance to enhance their ability to launch or grow export operations in Michigan.
Both of these programs are part of the MEDC’s economic gardening strategy to support existing Michigan
companies and to create new jobs.
Year-end Report to the Legislature / FY 2011 / 26
MEDC FY 2011
PRIVATE ACTIVITY BONDS
Private Activity Bonds (v»ns) provide companies with capital cost savings stemming from the di?erence
between taxable and tax-exempt interest rates. Te Michigan Strategic Fund (rsr) has the authority to provide
tax-exempt federal bonds. Tese bonds ?nance manufacturing projects, not-for-pro?t corporation projects, and
solid or hazardous waste disposal facilities. PABs lower the cost of capital for mature ?rms and help address a
critical gap in project ?nancing throughout the state.
TAX-EXEMPT BONDS
Fiscal Year 2011 (10/01/2010–09/30/2011)
Company City County Approved amount Type
Erwin Quarder, Inc. Cascade Charter Twp. Kent sz,¸oo,ooo New
MANSiMoeller Manufacturing Company Wixom Oakland s6,¡oo,ooo Manufacturing
Sintel, Inc. Spring Lake Twp. Ottawa s¡,¡¸o,ooo New
EnovateIT, LLC Canton Wayne sz,1¸o,ooo Manufacturing
Total $15,300,000
TAXABLE BONDS
Fiscal Year 2011 (10/01/2010–09/30/2011)
Company City County Approved amount Type
Orchestra Place Renewal Partnership Project Detroit Wayne s1;,1¸¸,ooo
Conversion of zooo Tax-
Exempt Bonds to Taxable
Total $17,135,000
NON-PROFIT, SOLID WASTE, REFUNDING/REFINANCING
Fiscal Year 2011 (10/01/2010–09/30/2011)
Company City County Approved amount Type
Porter Hills Presbyterian Village, Inc. Grand Rapids Charter Twp. Kent s¡,,68,ooo Refunding
GreenPath, Inc. Farmington Hills. Oakland s1,,ooo,ooo Non-pro?t
Sintel, Inc. Spring Lake Twp Ottawa sz,z1¸,ooo Refunding
Merit Network, Inc. Various Various s8,ooo,ooo Non-Pro?t
Air Products and Chemicals, Inc. Detroit Wayne s,¸,ooo,ooo
First supplemental trust
indenture amendireissuance
new monthly mode
Cadillac Place O?ce Building, SOM Wayne Wayne s11,,11¸,ooo New
Total $248,298,000
RECOVERY FACILITY BONDS
Fiscal Year 2011 (10/01/2010–09/30/2011)
Company City County Approved amount Type
JBS USA, LLC Gun Lake Charter Twp. Allegan s16,o¡¡,6;, Recovery
Te Hagerty Group, LLC Traverse City Grand Traverse s8,18¡,ooo Recovery
Bell’s Brewery Galesburg Kalamazoo s1z,1oo,ooo Recovery
West Michigan Rental Properties, LLC Muskegon Muskegon sz,¡oo,ooo Recovery—Series A
West Michigan Rental Properties, LLC Muskegon Muskegon sz¸o,ooo Recovery—Series B
Te Detroit Edison Company Various Various s1,,8¸¸,ooo Recovery
Te Kroger Company Various Various s8o,,z¸,ooo Recovery
Total $139,758,679
Year-end Report to the Legislature / FY 2011 / 27
MEDC FY 2011
MICHIGAN ECONOMIC GROWTH AUTHORITY PROGRAM
Te Michigan Economic Growth Authority (rvo») o?ers a refundable tax credit against the Michigan Business
Tax (rn
to companies expanding or relocating their operations in Michigan. MEGA addresses the cost
di?erentials between Michigan and competing states to provide companies with a strong business case to
choose Michigan.
Te MEGA credit is up to 1oo percent of the state’s personal income tax rate multiplied by the actual wages
and employer-paid health care costs on quali?ed new or retained jobs. Should the credit exceed a ?rm’s annual
tax liability, the di?erence is refundable. By law, the credit may be up to zo years in length. Te state awards
these tax credits annually after companies create or retain jobs. By carefully following program requirements,
monitoring the job creation and tax credits, and focusing on high-tech industries, MEGA helps Michigan to
attract the businesses that can diversify and stabilize the state’s economic development.
Eligible companies are typically engaged in manufacturing, research and development, wholesale and trade,
headquarter o?ce operations, or certain tourism projects. Retail facilities are not eligible. Credits are awarded
based on the strength of the company’s project, competition with other non-Michigan locations, and program
guidelines. Tey also are subject to approval by the MEGA Board, a seven-member body appointed by the governor.
Tere are four types of MEGA tax credits—Standard, Rural, High-Tech, and Retention—each with speci?c
criteria for qualifying for an award.
Te MEGA Board executed ;z agreements in ?scal year zo11. Of those agreements, ¸1 were Standard MEGA
credits, z¡ were High-TechiHigh-Wage credits, 1z were Retention credits, and four were Rural credits.
A 6.o percent Michigan Corporate Income Tax (ci will be levied beginning January 1, zo1z, replacing the
Michigan Business Tax. Te new CIT eliminates almost all tax credits, including MEGA credits, however, any
taxpayer that has an existing credit (or a “certi?cated credit”) approved and executed before January 1, zo1z, will
be able to realize the full bene?ts of their credit. Te new tax system will allow taxpayers to receive the bene?ts
of their certi?cated credits by electing to continue to ?le the MBT for the duration of their credits.
Beginning in January zo1z, the Michigan Strategic Fund and the Michigan Economic Development
Corporation will operate new appropriation-based economic development and community revitalization
programs that will provide s1oo million in incentives for highly competitive projects in Michigan.
MBT CREDIT APPROVALS (not including Brown?elds)
Fiscal Year 2011 (10/01/2010–09/30/2011)
Company Project city
Project
county
Projected
direct jobs
created
Projected
direct jobs
retained
Projected
capital
investment
Estimated
credit amount
Eovations, LLC Bay City Bay 6¡ s16,ooo,ooo s1,z,¸,ooo
IPC Print Services, Inc. St. Joseph Berrien zo8 sz¸,o¸¸,ooo s1,o;1,ooo
Patriot Solar Group, LLC Albion Calhoun 1,¸ s¸,,¸¡,ooo s1,z88,ooo
Spartan Motors, Inc. Charlotte Eaton ¡¸o s¸,1¡¡,ooo s8,8¸,,ooo
Creative Foam Corporation Fenton Genesee 6¸ s1,¸oo,ooo s¸6z,ooo
Magna Electronics Holly Genesee ¸8¸ s6¡,8¸¸,¸¸8 sz,11o,ooo
Martinrea Jonesville, LLC Jonesville Hillsdale 168 s1¸,8,,,z;, s,,o,ooo
Gemini Group, Inc. (retention) Bad Axe Huron ¸¸¸ s¸z,¸6,,1o¸ s¸,¸8¸,ooo
Gemini Group, Inc.°
(standard)
Bad Axe Huron z,o s,;1,ooo
Force By Design, Inc. East Lansing Ingham ¸o s¡¸o,ooo sz¸1,ooo
MedAssurant, Inc. Lansing Ingham ¡o¡ s¡,o¸¸,ooo sz,z¸z,ooo
XG Sciences, Inc. Lansing Ingham ¸o s6,6¸8,,oo s¡¸6,ooo
Year-end Report to the Legislature / FY 2011 / 28
MEDC FY 2011
MBT CREDIT APPROVALS (not including Brown?elds) continued
Fiscal Year 2011 (10/01/2010–09/30/2011)
Company Project city
Project
county
Projected
direct jobs
created
Projected
direct jobs
retained
Projected
capital
investment
Estimated
credit amount
Chemetail U.S., Inc. Jackson Jackson ;¡ szo,;¸o,ooo s8z1,ooo
Michigan Automotive
Compressor, Inc.
Parma Jackson ¸6z s;z,ooo,ooo s¡,,¡1,ooo
Atomic Object, LLC Grand Rapids Kent ¸o s,8¸,ooo s16z,ooo
Dematic Corporation Grand Rapids Kent ¸o¸ s1o,,o1,ooo s¸,z¸z,ooo
Dynamic Captioning, LLC Grand Rapids Kent ¡o s¸¸¡,ooo s1;o,ooo
Knape & Vogt
Manufacturing Company
Grand Rapids Kent 1zz s1,z¡;,¡8¸ s¸¸¸,ooo
Hearthside Food Solutions Kentwood Kent ¸oz s1;,¸oo,ooo s1,z¸z,ooo
Key Plastics, LLC
Howell,
Farmington
Hills and
Cascade
Charter Twp.
Livingston,
Oakland and
Kent
z,; s1o,z,;,8oo s1,1o¸,ooo
Yanfeng (USA) Automotive
Trim Systems, Inc.
Harrison Twp. Macomb 1¸1 s1;,o,¸,;¸; s1,1o6,ooo
KUKA Robotics Corp. USA Shelby Twp. Macomb 68 s¡,6,o,ooo s1,o¸,,ooo
Acument Global
Technologies
Sterling
Heights
Macomb 1¸o s¸,11¸,ooo s8;¸,ooo
Macomb Pipe and Supply
Company, Inc.
Sterling
Heights
Macomb 1o; s6,¸oo,ooo s1,oo¸,ooo
Mountain Valley Recycling,
LLC
Sterling
Heights
Macomb ¸,6 sz,,¸oo,ooo s¸,1oz,ooo
Michigan Iron Nugget, LLC Tilden Twp. Marquette 11¡ sz8o,ooo,ooo s1,,¸;,ooo
Fluid Routing Solutions
Incorporated
Big Rapids Mecosta z;; s1z,¸oo,ooo s1,6,6,ooo
Nu-Vu Food Service
Systems
Menominee Menominee ¡o s,¸o,¸oo s,o,ooo
Gerdau Macsteel Monroe Monroe ;;8 s66,,¸o,1oo s,,z8,,ooo
Benteler Automotive
Corporation
Auburn Hills Oakland z¸o s¸,,66,¸oo s1,z¡6,ooo
Chrysler Group, LLC Auburn Hills Oakland zo,ooo s1,ooo,ooo,ooo s1,¸6o,18,,ooo
Dokka Fasteners,
Incorporated
Auburn Hills Oakland ,o szo,¸,6,ooo s1,¸z1,ooo
Faurecia Interior Systems,
Incorporated
Auburn Hills Oakland ¡z8 s1,,¸8o,ooo s¡,¸zz,ooo
Montaplast of North
America, Incorporated
Auburn Hills Oakland z¸ sz,¸¸;,ooo s¸z¸,ooo
Lakeside Software, Inc.
Bloom?eld
Hills
Oakland 1,8 s6,1¡¡,ooo s;¸1,ooo
Tianhai Electric North
America, Inc.
Lake Orion Oakland zoz s¸,¡68,ooo sz,,,ooo
Year-end Report to the Legislature / FY 2011 / 29
MEDC FY 2011
MBT CREDIT APPROVALS (not including Brown?elds) continued
Fiscal Year 2011 (10/01/2010–09/30/2011)
Company Project city
Project
county
Projected
direct jobs
created
Projected
direct jobs
retained
Projected
capital
investment
Estimated
credit amount
Detroit Heavy Truck
Engineering, LLC
Novi Oakland ¡, s¡,6z¡,ooo sz¸¡,ooo
Macprofessionals, Inc. Novi Oakland 11, sz,16¸,o¸¡ s¸6,,ooo
Summit Health, Inc. Novi Oakland z¸z s11,¸;¸,¸8¡ s¸1¡,ooo
Toyota Boshoku America,
Inc.
Novi Oakland ¡o s¸,z1¸,o;o sz1o,ooo
HP Enterprise Services, Inc. Pontiac Oakland z¸o s¡,;,o,ooo s¸,¸¸z,ooo
Otto Block Polyurethane
Technology, Inc.
Rochester Oakland ,8 s1¸,¸¡;,ooo s6;z,ooo
Bright Automotive
Incorporated
Rochester
Hills
Oakland zo¡ s11,o6z,ooo s¡,¸z;,ooo
WABCO North America,
LLC
Rochester
Hills
Oakland 1oo sz,18;,¡6o s,8;,ooo
Member Driven Technologies Southgate Oakland 1o1 s6,¡86,z¸1 s¸¸;,ooo
Dialogue Marketing, Inc. Troy Oakland z¸o s¸,o1¸,ooo s¡;¡,ooo
Kenersys Americas, LLC Troy Oakland 16o s1o,z¡z,ooo s1,o1;,ooo
Magna Steyr North America Troy Oakland zoo s;6¸,ooo s1,¸;z,ooo
P3-North America, Inc. Troy Oakland 6¸ s¸¸z,1¸o s¡86,ooo
Hexagon Metrology Wixom Oakland ;¸ s¸,o6¡,ooo s¸o6,ooo
Plasan Carbon Composites,
Incorporated
Wixom Oakland z¸8 sz1,z;o,¸oo s¸,¡8,,ooo
Sketee-Van Huis Holland Ottawa 18o s¸,¸zz,ooo s86¸,ooo
Genetex Corporation Zeeland Ottawa 1,11o s16o,z¸o,ooo sz,¡¡6,ooo
Magna Exteriors and
Interiors USA, Inc.
China
Township
St. Clair ¸¸¸ s1¡,¡¡o,1oo s1,¡,6,ooo
Metalloid Corporation Sturgis St. Joseph ¸o s¸6¸,ooo szz8,ooo
American Broach and
Machine Company
Ypsilanti Washtenaw ¡¸ sz¸,ooo,ooo s¸;¸,ooo
MTU Detroit Diesel, Inc.
(retention)
Brownstown Wayne z¡¸ s¸z,oo6,ooo s¸,8,z,ooo
MTU Detroit Diesel, Inc.
(standard)*
Brownstown Wayne 11¸ s1,;1z,ooo
Merit Technologies
Worldwide
Canton Wayne 8, s16,888,ooo s¡¡z,ooo
Ford Motor Company Dearborn Wayne z8,ooo s8¸o,ooo,ooo s,o,,oz¸,ooo
Health Business Solutions Dearborn Wayne zo6 sz,618,,zo s816,ooo
Crain Communications, Inc. Detroit Wayne ¸o s¸,¸,¸,ooo s¡¡¸,ooo
EnovateIT, LLC Ferndale Wayne 16o s¡,¡¸o,ooo s1,1o¸,ooo
Science Applications
International Corporation
Livonia Wayne ¸o s8o¸,ooo s¸8,,;o¸
Year-end Report to the Legislature / FY 2011 / 30
MEDC FY 2011
MBT CREDIT APPROVALS (not including Brown?elds) continued
Fiscal Year 2011 (10/01/2010–09/30/2011)
Company Project city
Project
county
Projected
direct jobs
created
Projected
direct jobs
retained
Projected
capital
investment
Estimated
credit amount
Cequent Performance
Products, Inc.
Plymouth Wayne 6o s¸,¡;z,o;¸ s8,;,ooo
Roush Cleantech, LLC Plymouth Wayne ¸¡ sz,1o¸,¸,o s1,1¸6,ooo
Changan U.S. Research and
Development Center, Inc.
Plymouth
Township
Wayne 161 s;,o1o,ooo s1,;zz,ooo
Piston Automotive, LLC Redford Wayne 1¸¸ s1¡,,¸;,ooo s88,,ooo
Systrand Manufacturing
Corporation
Rockwood Wayne 16z s1,,z¸o,ooo s;16,ooo
AJM Packaging Corporation Southgate Wayne 1z¸ sz8,¸¸o,ooo s¸6¸,ooo
Unistrut International
Corporation
Wayne Wayne 86 s¡,¸z¸,ooo s6o6,ooo
Avon Protection Systems,
Incorporated
Cadillac Wexford 1¡¸ s6oo,ooo s¸,6,ooo
Totals 10,748 51,036 $3,105,391,476 $2,379,963,703
*Combo Credit-Capital Investment reported only under Retention Credit
Year-end Report to the Legislature / FY 2011 / 31
MEDC FY 2011
MICHIGAN ECONOMIC GROWTH AUTHORITY PROGRAM
In addition to MEGA tax credits, there are other MBT credits subject to MEGA Board approval that are designed
to advance new industries with the potential for signi?cant growth. Advanced Battery Credits o?er a refundable
credit against the MBT toward advanced battery R&D and engineering, and commercial scale package and
cell manufacturing. Defense Contracting Credits o?er a refundable credit against the MBT to help Michigan
companies procure federal contracts from the Department of Defense, Department of Energy, or the Department
of Homeland Security. Te credit is based on the new jobs created as a result of the federal contract awarded.
Tese MBT credits also are eliminated beginning January 1, zo1z, however, any taxpayer that has an existing
credit (or a “certi?cated credit”) approved and executed before January 1, zo1z, will be able to realize the full
bene?ts of their credit.
OTHER MBT CREDIT APPROVALS
Fiscal Year 2011 (10/01/2010–09/30/2011)
Company Project city Project city
Project
county
Projected
capital
investment
Maximum
authorized
credit
Vehicle Engineering Battery Credit
Chrysler Group, LLC Auburn Hills Auburn Hills Oakland s1¸;,ooo,ooo s¡¸,ooo,ooo
Defense Contracting Credit
Powertrain Integration, LLC Madison Heights Ypsilanti Washtenaw sz,ooo,ooo s¸oo,ooo
Total $139,000,000 $45,300,000
Year-end Report to the Legislature / FY 2011 / 32
MEDC FY 2011
BROWNFIELD REDEVELOPMENT PROGRAM
Te Brown?eld Redevelopment program promotes redevelopment of contaminated and underutilized property
in Michigan in order to bring that property back to productive use. Te incentive program, administered by the
MEDC, commenced in zooo and has two major statutory elements—the Brown?eld Redevelopment Act and a
Michigan Business Tax (rn credit. Te program provides incentives to companies, developers or businesses
through tax increment ?nancing assistance andior tax credits for the redevelopment of brown?eld property.
Te MEDC and the Michigan Department of Environmental Quality provide assistance and coordinate
incentives to get challenged sites redeveloped.
Beginning in January zo1z, the Michigan Strategic Fund and the Michigan Economic Development
Corporation will operate new appropriation-based economic development and community revitalization
programs that will provide s1oo million in incentives for highly competitive projects in Michigan.
A 6.o percent Michigan Corporate Income Tax (ci will be levied beginning January 1, zo1z, replacing
the Michigan Business Tax. Te new CIT eliminates almost all tax credits, including Brown?eld MBT credits,
however, any taxpayer that has an existing credit (or a “certi?cated credit”) approved and executed before January
1, zo1z, will be able to realize the full bene?ts of their credit. Te new tax system will allow taxpayers to receive
the bene?ts of their certi?cated credits by electing to continue to ?le the MBT for the duration of their credits.
BROWNFIELD MBT CREDIT APPROVALS
Fiscal Year 2011 (10/01/2010–09/30/2011)
Company City County
Estimated credit
amount
Excel-Allegan LDHA, LP Allegan Allegan s¸8,,1;6
CRA 200 Allegan St., LLC Plainwell Allegan s¸z¸,811
Madison Arts, LLC Bay City Bay s¸¸z,;¸o
Oddfellows Hall, LLC Bay City Bay s161,¸;1
Swarts Tower, LLC Bay City Bay s¡oo,ooo
Wolverine Arts, LLC Bay City Bay s¸,¸,;¸o
Everest Campus, LLC Benton Harbor Berrien s¸,ooo,ooo
Whirlpool Corporation Benton Harbor Berrien s;,;¡o,ooo
JMWingard, LLC Coldwater Branch s,;¸,z¸,
McCullough Investments, LLC Battle Creek Calhoun s,¸,¡¸8
Spartan Motors Chassis, Inc. Charlotte Eaton s¡6¸,¸oo
Lurvey White Ventures 1, LLC Flint Genesee s¸,6o1,;o¸
Grand Traverse Hotel Properties, LLC Traverse City Grand Traverse sz,ooo,ooo
Lake Street Properties VII, LLC Traverse City Grand Traverse s1,¸oo,ooo
Sub Area 3, LLC Traverse City Grand Traverse s1,1¸6,o6;
A & G Partnership, LLC East Lansing Ingham s1,61,,o¡1
St. Anne, LLC East Lansing Ingham s66;,,;¸
George F. Eyde Limited Family Partnership,
Louis J. Eyde Limited Family Partnership
Lansing Ingham s¡,86,,6¸¡
Marketplace Partners, LLC Lansing Ingham s1,,,¸,¡o¸
Marketplace Partners, LLC Lansing Ingham s1,6o¸,¡o6
Michigan Avenue Investors II, LLC Lansing Ingham s11¸,81¸
RKH Investments, LLC Lansing Ingham s;8,1z¸
Excel-New Urban Jax LDHA LP Jackson Jackson s1,¡¡8,;1o
232, LLC Kalamazoo Kalamazoo s8o,ooo
Year-end Report to the Legislature / FY 2011 / 33
MEDC FY 2011
BROWNFIELD MBT CREDIT APPROVALS continued
Fiscal Year 2011 (10/01/2010–09/30/2011)
Company City County
Estimated credit
amount
Catalyst Development Co. 7, LLC Kalamazoo Kalamazoo s,;8,¸8,
Kilgore Point, LLC Kalamazoo Kalamazoo s¸61,¡,z
LADD Real Estate, LLC Kalamazoo Kalamazoo s1,z,¸¡;
People’s Food Co-operative of Kalamazoo Kalamazoo Kalamazoo s1¸6,;¡1
Peregrine Plaza, LLC Kalamazoo Kalamazoo s¸¸¸,z¸6
100 Commerce Development, LLC Grand Rapids Kent s¡oo,ooo
20 Monroe Bldg Co., LP Grand Rapids Kent s¡,¸zo,ooo
38 Front Redevelopment, LLC Grand Rapids Kent s8,ooo,ooo
68 Commerce, LLC Grand Rapids Kent s1¸z,z1¸
Acme Investors, LLC Grand Rapids Kent s6,6,¸z¸
CityFlats Grand Rapids RE, LLC Grand Rapids Kent s61z,ooo
Division Park Avenue, LDHA LP Grand Rapids Kent s1,z8z,o6¡
Fulton Property Holdings, LLC Grand Rapids Kent s¸¸¸,1¸6
Grand Rapids Urban Market Holdings, LLC Grand Rapids Kent s¸,¡oo,ooo
H Development Group, LLC and
Eastown Veterinary Clinic, P.C.
Grand Rapids Kent s1¸6,¸oo
Harris Lofts LLC, Nextwork Group, LLC Grand Rapids Kent s,¸o,ooo
Health Park Central, LLC Grand Rapids Kent s1,o6z,¸oo
O?site Lake Drive, LLC Grand Rapids Kent s181,z¸o
Serrano Lofts, LDHA LP Grand Rapids Kent s;8;,86;
Downtown Trini Cafe, Inc. Sparta Kent s6¡,¸;¸
Undercar Products Group, Inc. Wyoming Kent s1,o¸;,¸oo
Mar Sal Investments, LLC and
Tom Maceri and Son, Inc.
St. Clair Shores Macomb s¸8o,,¸,
Chrysler Group, LLC Sterling Heights Macomb s1o,ooo,ooo
Macomb Pipe & Supply Co.
dba Te Macomb Group
Sterling Heights Macomb s¸¸o,ooo
Ceratizit USA, Inc. Warren Macomb s¸¸o,ooo
General Motors, LLC Warren Macomb s1o,ooo,ooo
RioVista, LLC Manistee Manistee s¡6,¸oo
KDMAC Ventures, LLC Ludington Mason s¡¸,zoo
McMaster Brother Properties, LLC Scottville Mason s¡¸,z¸8
Te Dow Chemical Company Midland Midland s1,z¸o,ooo
JDK, LLC Monroe Monroe sz6;,z;8
Lafayette Place Lofts, LLC Pontiac Oakland sz,z¡,,o8¡
Tower Real Estate Ventures, LLC South?eld Oakland s1,z,¡;o
Mindset Properties, LLC Grand Haven Ottawa sz¸o,ooo
Downtown Area Development, LLC Saginaw Saginaw s¸¡¸,¸¸¸
Rebuild Lebowsky, LLC Owosso Shiawassee s,¸o,ooo
Wesener, LLC Owosso Shiawassee s¸8¡,ooo
Landmark Development LLC Port Huron St. Clair s1,61¸,zoo
Mellencamp Building LLC Ypsilanti Washtenaw s¸1¡,;z¡
Severstal Dearborn, LLC Dearborn Wayne s1,z¸o,ooo
Severstal Dearborn, LLC Dearborn Wayne s1o,ooo,ooo
Year-end Report to the Legislature / FY 2011 / 34
MEDC FY 2011
BROWNFIELD MBT CREDIT APPROVALS continued
Fiscal Year 2011 (10/01/2010–09/30/2011)
Company City County
Estimated credit
amount
6o, E. Kirby Lofts, LLC Detroit Wayne s6;¸,¸oo
8,oo Gratiot, LLC Detroit Wayne s661,¡oo
Brentwood Detroit, LLC Detroit Wayne s1,o,8zo
Comerica Bank Detroit Wayne s1,o6¸,8¡6
Coronado Apartments, LDHA LP Detroit Wayne s¡¸¸,;o¸
DCC Community Development, LLC Detroit Wayne s,¡,¸;6
Detroit Termal, LLC Detroit Wayne sz8¸,1z¸
DRSN Real Estate, LLC Detroit Wayne s;;1,,z8
Emerald Springs IA, LDHA LP Detroit Wayne sz,¸o,,;z;
Free Press Holdings, LLC Detroit Wayne s1o,ooo,ooo
Griswold Holdings, LLC Detroit Wayne s¸16,88o
Historic Book House, LLC Detroit Wayne s¡oo,ooo
Madison Teatre Building, LLC Detroit Wayne s,¸o,ooo
Metro International Trade Service, LLC Detroit Wayne s¸,¸,;¸o
Palmer Park Square LDHA, LP Detroit Wayne s1¸6,¡6,
Palmer Park Square LDHA, LP Detroit Wayne sz¸o,ooo
Palmer Park Square LDHA, LP Detroit Wayne s¸1¸,618
Palmer Park Square LDHA, LP Detroit Wayne s¸8z,¡o¡
Palmer Park Square LDHA, LP Detroit Wayne s¸;z,1¸6
Palmer Park Square LDHA, LP Detroit Wayne s¡oz,8,,
Paradise Valley Investment Group, LLC Detroit Wayne s1z,,66o
PVM EJNP Real Estate Company, LLC and
Detroit A?ordable Assisted Living LDHA, LP
Detroit Wayne sz,¸z1,¸1;
Renaissance Village, LDHA LLC Detroit Wayne s¸¡1,18¡
Renaissance Village, LDHA LLC Detroit Wayne sz,ooo,ooo
S. Dot Collection, LLC Detroit Wayne s¡;,¸¸6
S. Dot Collection, LLC Detroit Wayne s,6,¡1z
Sugar Hill Residential, LLC Detroit Wayne sz,¡,6,,¡¸
Toma Properties, LLC Detroit Wayne s¡61,6z8
Village ParkiMHT, LDHA LLC Detroit Wayne s¸z¸,;z¸
Woodward O?ces, LLC Detroit Wayne s1o,ooo,ooo
Sable Acquisitions, LLC, Flavor, LLC Hamtramck Wayne s¸oz,68o
City Marketplace, LLC Inkster Wayne s1¸z,ooo
Total $146,951,381
°API West Village, LLC—AMENDMENT #1 East Lansing Ingham s¸z1,¡;1
°Auburn REO LLC fka Cass Can?eld, LLC—AMENDMENT #1 Detroit Wayne s1,61;,¡¸,
°Cass Plaza Apartments, LDHA LP—AMENDMENT #1 Detroit Wayne s6z1,¸¡8
Amendment total $2,760,458
*Please note that amendments are only reported when credit increased.
Year-end Report to the Legislature / FY 2011 / 35
MEDC FY 2011
BROWNFIELD TAX INCREMENT FINANCING APPROVALS
Fiscal Year 2011 (10/01/2010–09/30/2011)
Brown?eld Authority Name of project City County TIF amount
City of Plainwell Former Plainwell Paper Mill Plainwell Allegan s¸68,¸¡6
City of Cheboygan SAFCU—Straits Area Federal Credit Union Cheboygan Cheboygan s¡86,6o,
County of Grand Traverse Land Bank Authority Parcels
Interlocheni
Traverse City
Grand
Traverse
s¸o,¸¸;
City of East Lansing z11 Albert Avenue Redevelopment East Lansing Ingham s¸,o,;,1¸¸
City of East Lansing Te St. Anne Redevelopment project East Lansing Ingham s1,¸¸o,zo,
City of East Lansing Spartan Technology Development East Lansing Ingham sz6z,o68
City of Lansing Marketplace Development Lansing Ingham s6,;1;,¸¸6
City of Grand Rapids
Wealthy Je?erson Development Initiative
Parcel B
Grand Rapids Kent s1,o,;,z,,
City of Wyoming
Former General Motors Corporation Grand
Rapids Metal Plant ¸6th Street SW
Wyoming Kent s8,¡¸z,,,8
City of Port Huron Former Sperry Department Store Port Huron St. Clair s;1o,,;1
County of Washtenaw
Deli Partners, LLC (aka Zingerman’s
Delicatessen Redevelopment)
Ann Arbor Washtenaw s8z,,z,1
County of Washtenaw Packard Square Redevelopment project Ann Arbor Washtenaw sz,o¡o,1¡,
City of Dearborn Continuous Annealing Line Dearborn Wayne s,;,¸o8,616
City of Dearborn Te Union at Dearborn Dearborn Wayne sz,¸¡o,6,,
City of Dearborn Heights Tim Hortons Store redevelopment project
Dearborn
Heights
Wayne s6,,61;
City of Detroit Free Press Plaza and Apartments Detroit Wayne s¡¡z,,8,
City of Detroit
West Grand Blvd. redevelopment project:
1660 West Grand
Detroit Wayne s¡1,1z1
City of Detroit
West Grand Blvd. Redevelopment project:
1900 West Grand Blvd. and 1905 West
Grand Blvd.
Detroit Wayne s1zo,¡o,
City of Detroit East Je?erson Neighborhood project Detroit Wayne s¸8¸,;¸8
City of Detroit
Former Gas Station
(1o1o8 and 1o1¸o West ; Mile Road)
Detroit Wayne s¸o1,1¸¸
City of Detroit Queen Lillian Medical O?ce Building Detroit Wayne s¡o8,6¡;
City of Hamtramck
1ozo1 Joseph Campau Redevelopment
project
Hamtramck Wayne s116,ooo
City of Hamtramck ¸¸oo Denton Redevelopment Hamtramck Wayne s¡;o,,¸¸
County of Wayne
Lincoln Park Shopping Center
Redevelopment
Lincoln Park
and Allen Park
Wayne s¸,8oz,¡,¸
City of Trenton Riverside Commons Redevelopment project Trenton Wayne sz,zz¡,z¸o
Year-end Report to the Legislature / FY 2011 / 36
MEDC FY 2011
BROWNFIELD TAX INCREMENT FINANCING APPROVALS continued
Fiscal Year 2011 (10/01/2010–09/30/2011)
Brown?eld Authority Name of project City County TIF amount
City of Westland
Former Showcase Cinema Brown?eld
Redevelopment
Westland Wayne s18;,6¸¸
City of Wyandotte
Former Wyandotte Police Station
Redevelopment project
Wyandotte Wayne sz1o,;¸z
Total $134,274,222
° County of Grand Traverse
Traverse City Place project-Hotel Indigo
Phase—AMENDMENT #z
Traverse City
Grand
Traverse
s1,1o¸,¸¡;
° County of Grand Traverse
Boardman Lake Avenue pathway and Trail
System—AMENDMENT #1
Traverse City
Grand
Traverse
s6,8;o,1¡6
° County of Grand Traverse
Grand Traverse Commons and the Village
at Grand Traverse Commons, Former
Traverse City State Psychiatric Hospital—
AMENDMENT #1
Traverse City
and Gar?eld
Twp.
Grand
Traverse
s1,,,6z,z,z
° City of Lansing
East Village Housing project aka
Boys Training School Property—
AMENDMENT #1
Lansing Ingham szo¡,¸¡,
Amendment total $28,142,334
*Please note that amendments are only reported when credit increased.
Year-end Report to the Legislature / FY 2011 / 37
MEDC FY 2011
MICHIGAN FILM INCENTIVES
Te Michigan Film and Digital Media Production Incentive, which expires December ¸1, zo11, provided
quali?ed production companies up to a ¡o percent refund across the board for Michigan expenditures with the
opportunity to earn an additional z.o percent o?ered for non-Michigan below-the-line labor.
In zo11, z1 projects were approved for a total of sz¡,z6¸,18¡ in incentives under the Michigan Film and Digital
Media Production Incentive. In addition to criteria laid out in the statute, preference was given to projects that
best met the following criteria:
1. Te production is ?nancially viable.
2. Utilization of existing infrastructure (studios, post-production facilities, etc.).
3. Te number and wage levels of direct jobs for Michigan residents created by a production.
4. Ability to show Michigan in a positive light and promote the state as a tourist destination.
5. Magnitude of estimated expenditures in Michigan.
Beginning in January zo1z, the Michigan Film O?ce will operate within a sz¸ million appropriation budget and
approve projects under the guidelines set in Public Act z,1 of zo11.
COMPLETED MICHIGAN FILM AND DIGITAL MEDIA PRODUCTION INCENTIVES
Fiscal Year 2011 (10/01/2010–09/30/2011)
Project title
Total Michigan
spend (approved)
Incentive amount
(approved) Description Locations
Keys to the Goose s1oo,ooo s¡z,ooo Documentary Ferndale, Lansing
Chasing Jimmy s8o,ooo s¸z,ooo Documentary
Caseville,
Huron County
Sky Kids ¡ s¡,¸1z,ooo s1,8o¡,8oo Feature ?lm (post) Birmingham
Hung, Season ¸ sz,6¡8,¡86 s1,o¸,,¸,¡ Television series
Troy, Hamtramck,
West Bloom?eld,
Detroit
Domestic Justice s;6,¡¸o s¸z,1o, Television pilot Livonia, Ferndale
Te Citizen s1,¸¸6,zoo s¸61,zo¡ Feature ?lm Detroit
I, Alex Cross s8,¸o,,¸8; s¸,¸;¸,,¡¸ Feature ?lm
Detroit and
surrounding areas
Five Year Engagement s1z,¸¸z,o¸6 s¸,z6¸,¡6¡ Feature ?lm Detroit, Ann Arbor
Detention of the Dead s¸¸1,z¸¸ s1¸,,118 Feature ?lm Pontiac
AWOL s¡,¸;¡,,6o s1,8¸;,¡8¸ Feature ?lm
Ann Arbor, Detroit,
Ypsilanti
Northern Light s1oo,ooo s¡o,ooo Documentary (post) Farmington Hills
Sparkle s;,¡1o,z16 s¸,1o¡,¡¸¸ Feature ?lm
Detroit and
surrounding areas
Freaky Deaky s6,,z6,o;1 sz,86¡,ozo Feature ?lm
Detroit and
surrounding areas
Ghost Game s1,oz,,1z¸ s¡11,6¸o Video game Farmington Hills
Have a Little Faith s¸,6o,,¸,¸ sz,¸¸¸,,¡¸ Long form TV
Detroit and
surrounding areas
Dogman s¸8z,¸oo s1¸¸,1¡6 Feature ?lm Benzie County
Year-end Report to the Legislature / FY 2011 / 38
MEDC FY 2011
COMPLETED MICHIGAN FILM AND DIGITAL MEDIA
PRODUCTION INCENTIVES continued
Fiscal Year 2011 (10/01/2010–09/30/2011)
Project title
Total Michigan
spend (approved)
Incentive amount
(approved) Description Locations
Ben Hogan Lessons
Mobile App Game
s1,6,1oo s;8,¡¡o Interactive game Royal Oak
A DOT COM A?airs s1,1;¸,¸zz s¡,¸,;1, Feature ?lm
Benton Harbor,
St. Joseph
Actor° s1¸6,ooo s6z,¸zo Documentary (post) Farmington Hills
Mickey Matson & Te
Copperhead Conspiracy
s¸88,¡oo s16z,1z8 Feature ?lm
Ludington,
Manistee
Ariel & Zoey & Eli, Too,
Season ¸
s¡¸6,¸oo s1,1,6¡6 Television series Ann Arbor, Livonia
21 Approvals in 2011 $58,330,399 $24,265,184
Year-end Report to the Legislature / FY 2011 / 39
MEDC FY 2011
COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM
Te Community Development Block Grant (cono) program is a federal grant program utilizing funds received
from the U.S. Department of Housing and Urban Development. Funds are used to provide grants to eligible
counties, cities, villages and townships, usually with populations under ¸o,ooo, for economic development,
community development, and housing projects. Te Michigan Strategic Fund (rsr), in cooperation with the
MEDC, administers the economic development and community development portions of the program.
Te grant awards listed below represent projects for which the MSF Board authorized communities to
submit a full application for CDBG funding. At this stage of the process, a public hearing must be held to make
the community aware of the proposed project, a local authorizing resolution must be passed in support of the
project, and an environmental review must be completed, in accordance with the National Environmental
Policy Act of 1,6,. Once the application is submitted and reviewed for completeness and accuracy and all
required steps are completed, a grant agreement is prepared for all required signatures. It is important to note
that not all CDBG projects reach the grant agreement stage for various reasons.
CDBG GRANT AWARDS
Fiscal Year 2011 (10/01/2010–09/30/2011)
Pass-thru grantee County Project description
Approved
award amount
Lincoln Village Alcona
Grant increase: Downtown streetscape and street
improvements project (original amount: s6¸o,ooo)
s,z,zo¸
Fennville City Allegan
Grant increase: Water system improvement project
(original amount: s¸,8oo,ooo)
szoo,ooo
Alpena City Alpena Downtown façade improvements s;;,8,o
Central Lake Village and
Central Lake Township
Antrim
Central Lake Armor Express, Inc. dba Armor Express
machinery and equipment acquisition
s¡oo,ooo
Nashville Village Barry Downtown façade improvements s,6,66z
Watervliet City Berrien Downtown infrastructure improvements sz8;,ooo
Albion City Calhoun Downtown façade improvements sz;o,ooo
Athens Village Calhoun Downtown façade improvements s1,1,¸z8
Homer Village Calhoun Downtown façade improvements s¸86,z1,
Spring?eld City Calhoun Farm to Food—addition of commercial kitchen s1¸o,ooo
Boyne City Charlevoix Downtown façade improvements s181,¡z8
Boyne City Charlevoix
Dilsworth Hotel signature building acquisition and façade
improvements
s6oo,ooo
Cheboygan City Cheboygan
Grant increase: Great Lakes Tissue Company bankruptcy
proceedings additional legal fees
s¸o,ooo
Escanaba City Delta Downtown façade improvements s1;o,o8;
Gladstone City Delta Power plant blight elimination demolition project s¸;,,888
Bellevue City Eaton Farm to Food—replace pavilion structure sz1,,¸oo
Charlotte City Eaton
Spartan Motors Chassis, Inc. machinery and equipment
acquisition
s1,1zo,ooo
Eaton Rapids City Eaton
Grant increase: URV USA, LLC infrastructure project
(original amount: sz,zoo,ooo)
s1,ooo,ooo
Eaton Rapids City Eaton Mill Street Landing downtown improvement project s¸¸z,¸oo
Oneida Charter Township Eaton L&W Engineering machinery and equipment acquisition s¸oo,ooo
Year-end Report to the Legislature / FY 2011 / 40
MEDC FY 2011
CDBG GRANT AWARDS continued
Fiscal Year 2011 (10/01/2010–09/30/2011)
Pass-thru grantee County Project description
Approved
award amount
Beaverton Township Gladwin Modern Machinery CNC Machining Center acquisition s61,ooo
Ironwood City Gogebic Burton Industries building improvement project szoo,ooo
Breckenridge Village Gratiot Downtown infrastructure improvements s¸¸8,6¸¸
Breckenridge Village Gratiot Gratiot County Wind LLC infrastructure project sz¡o,ooo
Ithaca City Gratiot Downtown façade improvements s¸o¡,6¡o
Jonesville Village Hillsdale Public parking lot reconstruction and expansion s1;¸,ooo
Port Austin Village Huron Downtown façade improvements s,o,¸8o
Lake Odessa Village Ionia Farm to Food—construct four season building s¸8¡,8z,
Portland City Ionia Downtown façade improvements szoo,ooo
Hermatite Township Iron
Grant increase: Pine River Hardwoods, LLC saw mill
constructionirail spur improvement project (original
amount: s6oo,ooo)
s1¸o,¡oo
Comstock Charter
Township
Kalamazoo Bell’s Brewery, Inc. water and sewer upgrades szzo,ooo
Keweenaw County Keweenaw
Stamp sands (copper mills tailings) reuse implementation
feasibility study (bene?ts Baraga, Houghton and
Keweenaw counties)
sz¸,ooo
Baldwin Village Lake Wastewater treatment improvements s1,ooo,ooo
Lapeer City Lapeer Farm to Food—construct retractable walls for pavilion s11,8o¸
Lapeer City Lapeer Downtown infrastructure improvements s;¸6,1oo
Adrian City Lenawee Farm to Food—parking lot improvements sz8o,ooo
Bliss?eld Village Lenawee Cannery and auto repair blight elimination project s¡z,ooo
Hudson City Lenawee Downtown façade improvements s1,;,o6o
Hudson City Lenawee Downtown façade improvements s¸z1,,6o
Morenci City Lenawee Downtown façade improvements s16¡,ooo
Tecumseh City Lenawee GLOV Enterprises, LLC machinery and equipment s¸6o,ooo
Brighton City Livingston Mayday Building façade improvements s1o8,ooo
Ludington City Mason Downtown façade improvements s1¡z,,¸z
Coleman City Midland Downtown infrastructure improvements s¸¸¸,ooo
Howard City Village Montcalm Downtown infrastructure improvements s¡¸o,ooo
Egleston Township Muskegon Eagle Alloy, Inc. machinery and equipment acquisition s¸oo,ooo
Muskegon County Muskegon
Grant increase: Muskegon County Digital Divide
Investment project (additional equipment and tower
upgrades) (original amount: sz,z16,ooo)
szo,,¸,6
Rose City Ogemaw
Grant increase: Culvert improvements project
infrastructure (original amount: sz¡z,¸oo)
s¸6,¸;¸
Reed City Osceola
Grant increase: Flo-Pallet, Inc. machinery and equipment
project (original amount: s¸oo,ooo)
sz¸,ooo
Bagley Township Otsego
Cooper-Standard Automotive, Inc. hybrid geo-thermal
system project
s1z6,8oo
Year-end Report to the Legislature / FY 2011 / 41
MEDC FY 2011
CDBG GRANT AWARDS continued
Fiscal Year 2011 (10/01/2010–09/30/2011)
Pass-thru grantee County Project description
Approved
award amount
Gaylord City Otsego Farm to Food—construct retractable walls for pavilion s1;o,ooo
Gaylord City Otsego Downtown façade improvements s¡oo,ooo
Otsego County Otsego Aerospace diversi?cation feasibility study project s6o,ooo
Grand Haven City Ottawa Farm to Food—parking lot improvements s8¸,868
Grand Haven City Ottawa Downtown façade improvements s¸¸8,o18
Spring Lake Village Ottawa Downtown façade improvements szz¡,z¸¸
Spring Lake Village Ottawa Downtown infrastructure improvements sz;¡,¸¸1
Saginaw County Saginaw
Grant increase: Renewable energy park projectitransfer of
funds from Suniva, Inc. CDBG project (original amount:
s;,o¸¡,;oo)
s¡6¸,¸oo
Laingsburg City Shiawassee Downtown façade improvements s¸81,1z¡
Vernon Village Shiawassee Downtown infrastructure improvements s¸oo,ooo
Vernon Village Shiawassee Downtown building demolition and public park installation s1o8,¡z8
Constantine Village St. Joseph Downtown façade improvements s1¸¸,o¡¡
Sturgis City St. Joseph
Downtown façade improvements and signature building
acquisition
s16o,ooo
Caro City Tuscola Downtown infrastructure improvements s1¸¸,81¸
Millington Village Tuscola Downtown infrastructure improvements sz6z,¸oo
Bloomingdale Village Van Buren
Grant increase: Sewer rehabilitation project (original
amount: s¡;8,8oo)
s68,ooo
Bloomingdale Village Van Buren
Grant increase: Downtown parking lot improvements
project (original amount: sz¸8,88z)
s16,ooo
Decatur Village Van Buren Downtown infrastructure improvements s18o,ooo
South Haven City Van Buren Downtown infrastructure improvements s;¸o,ooo
South Haven City Van Buren Downtown façade improvements sz¡¸,6¡¡
Dexter Village Washtenaw DAPCO Industry site planningifeasibility study s1¸,z¸o
Total $19,411,210
*Please note that amendments to existing CDBG agreements are only reported when a grant is increased.
Year-end Report to the Legislature / FY 2011 / 42
MEDC FY 2011
MICHIGAN RENAISSANCE RECOVERY ZONE PROGRAM
Te Michigan Renaissance Zone Initiative was established in 1,,6 to foster economic development, industrial,
commercial, and residential improvements, prevent physical and infrastructure deterioration of de?ned areas,
and provide for the reuse of unproductive or abandoned industrial properties. Originally, the program created
nearly tax-free zones within regions for any business or resident presently in or moving into a zone for a period
up to 1¸ years, also known as Geographic Renaissance Zones. Today, this initiative consists of various types of
Renaissance Zone designations, including Michigan Strategic Fund (rsr) Designated Renaissance Zones that
speci?cally address project-driven designation requests, Agricultural Processing Renaissance Zones, Forest
Products Processing Renaissance Zones, and Renewable Energy Renaissance Zones. In all cases, the tax relief is
phased out in z¸ percent increments over the last three years of the zone designation.
Many of the original Geographic Renaissance Zones have begun to phase out, which caused concern for
companies with job and capital investment projects because they needed the zone bene?ts to complete those
projects. In zoo8, a legislative amendment allowed a portion of an already designated geographic zone to receive
a time extension or new subzone (provided the zone had less than 1o zones). Te MSF Board has the authority
to grant these new subzones and time extensions through December ¸1, zo11. Te zones are required to have a
job creation or capital investment to be eligible.
MICHIGAN RENAISSANCE ZONE ACTIVITY
Fiscal Year 2011 (10/01/2010–09/30/2011)
Meeting
date
Company or
Renaissance Zone Location County MSF Board action
1oiz;i1o Energetx Composites, LLC Holland
Charter
Twp.
Ottawa Renewable Energy Renaissance Zone:
New 1¸-year designation to begin
o1io1izo11 and end 1zi¸1izoz¸
1oiz;i1o City of Flint Renaissance Zone—
Time extension for Genesee
Packaging, Inc. project
Flint Genesee Geographic Renaissance Zone: Four-year
extension to begin o1io1izo11 and end
1zi¸1izo1¸
11i1;i1o Frontier Renewable Resources, LLC Kinross
Charter
Twp.
Chippewa Renewable Energy Renaissance Zone:
New 1¸-year designation to begin
o1io1izo11 and end 1zi¸1izoz¸
11i1;i1o North Country Renaissance Zonei
Township of Marenisco Subzone—
Revocation of Marenisco Hardwoods
and Manufacturing, Inc. project
Marenisco
Twp.
Gogebic Geographic Renaissance Zone:
Revocation of time extension due to
project not occurring as a result of
declining markets
11i1;i1o Berrien CountyiBenton Harbori
Benton Township Renaissance
Zone i Elisha Gray Enterprise Park
subzone—Whirlpool Corporation
project
Benton
Charter
Twp.
Berrien Geographic Renaissance Zone: 1z-year
time extension to begin o1io1izo11 and
end 1zi¸1izoz¸
11i1;i1o Berrien CountyiBenton Harbori
Benton Township Renaissance Zonei
Miller’s Pond subzone—Whirlpool
Corporation project
Benton
Harbor
Berrien Geographic Renaissance Zone: Six-year
time extension to begin o1io1izo11 and
end 1zi¸1izoz¸
11i1;i1o Berrien CountyiBenton Harbori
Benton Township Renaissance Zonei
Edgewater Redevelopment Area
subzone—Whirlpool Corporation
project
St. Joseph Berrien Geographic Renaissance Zone: 1z-year
time extension to begin o1io1izo11 and
end 1zi¸1izoz¸
Year-end Report to the Legislature / FY 2011 / 43
MEDC FY 2011
MICHIGAN RENAISSANCE ZONE ACTIVITY continued
Fiscal Year 2011 (10/01/2010–09/30/2011)
Meeting
date
Company or
Renaissance Zone Location County MSF Board action
1zio1i1o City of Detroit Renaissance Zonei
Lynch Road subzone—Detroit
Chassis project (amendment)
Detroit Wayne Geographic Renaissance Zone: Amend
previous time extension approval to add
a parcel number not originally included
1zio1i1o City of Flint Renaissance Zonei
New Great Lakes Medical Complex
subzone—Diplomat Specialty
Pharmacy LLC & IINN, Inc. (Insight
Institute of Neurosurgery and
Neuroscience) project
Flint Genesee Geographic Renaissance Zone: New 1¸-
year subzone to begin o1io1izo11 and
end 1zi¸1izoz¸
1zi1¸i1o Border to Border Renaissance
ZoneiCity of Coldwater subzone—
JMWingard, LLC project
Coldwater Branch Geographic Renaissance Zone: 1o-year
time extension to begin o1io1izo11 and
end 1zi¸1izoz1
1zi1¸i1o Mid-Michigan Economic Growth
Corridor Renaissance ZoneiLeRoy
Township subzone—Acme Pallet,
Inc. project
LeRoy
Twp.
Osceola
county
Geographic Renaissance Zone: Six-year
time extension to begin o1io1izo11 and
end 1zi1¸izozo
1zi1¸i1o Montcalm and Gratiot Counties
Renaissance ZoneiHoward Cityi
Pierson TownshipiReynolds
Township subzone—Northern Cable
& Automation, LLC (dba Flex-Cable)
project
Pierson
Twp.
Montcalm Geographic Renaissance Zone: Seven-
year time extension to begin o1io1izo11
and end 1zi¸1izo18
1zi1¸i1o City of Detroit Renaissance Zonei
SouthwestiDelRay subzone—Boasso
America Corporation project
Detroit Wayne Geographic Renaissance Zone: Seven-
year time extension to begin o1io1izo11
and end 1zi¸1izo18
1zi1¸i1o City of Detroit Renaissance Zonei
SouthwestiDelRay subzone—
Bridgewater Interiors, LLC project
Detroit Wayne Geographic Renaissance Zone: Seven-
year time extension to begin o1io1izo11
and end 1zi¸1izo18
1zi1¸i1o City of Detroit Renaissance Zonei
SouthwestiDelRay subzone—
Renaissance Global Logistics, LLC
project
Detroit Wayne Geographic Renaissance Zone: Nine-
year time extension to begin o1io1izo11
and end 1zi¸1izozo
1zi1¸i1o City of Detroit Renaissance Zonei
SouthwestiDelRay subzone—Te
John Johnson Company project
Detroit Wayne Geographic Renaissance Zone: Five-year
time extension to begin o1io1izo11 and
end 1zi¸1izo16
1zi1¸i1o Biofuels Industries Group Adrian Lenawee Renewable Energy Renaissance Zone
Revocation: Due to business closure and
noncompliance
o1iz6i11 Grid Logic Incorporated Lapeer
Twp.
Lapeer Renewable Energy Renaissance Zone:
New 15-year designation to begin
o1io1izo11 and end 1zi¸1izoz6
oziz¸i11 °Detroit Region Aerotropolis
Development Corporation: Cities
of Belleville, Romulus, Taylor, and
Ypsilanti, Charter Townships of
Van Buren and Ypsilanti, Huron
Township and Wayne County
Airport Authority
Various Washtenaw
iWayne
Designation of the Detroit Region
Aerotropolis Development Corporation
as a new Next Michigan Development
Corporation, e?ective immediately
Year-end Report to the Legislature / FY 2011 / 44
MEDC FY 2011
MICHIGAN RENAISSANCE ZONE ACTIVITY continued
Fiscal Year 2011 (10/01/2010–09/30/2011)
Meeting
date
Company or
Renaissance Zone Location County MSF Board action
o¸iz¸i11 Shoreline Fruit, LLC Acme Twp. Grand
Traverse
Agricultural Processing Renaissance
Zone: New 1¸-year designation to begin
o1io1izo11 and end 1zi¸1izoz6
o¡iz;i11 City of Saginaw Renaissance Zonei
Central Business District subzone—
SSP & Associates, Inc. project
Saginaw Saginaw Geographic Renaissance Zone: Seven-
year time extension to begin o1io1izo11
and end 1zi¸1izoz1
o¸iz¸i11 City of Lansing Renaissance Zonei
Knapps Centre subzone—George F
Eyde & Louis J Eyde Limited Family
Partnership project
Lansing Ingham Geographic Renaissance Zone: New 1¸-
year subzone to begin o1io1izo11 and
end 1zi¸1izoz6
o6izzi11 CityiCounty of Jackson Renaissance
ZoneiProduction Engineering
Subzone—Production Engineering,
Inc. project
Jackson Jackson Geographic Renaissance Zone: New
subzone designated in zoo8 reduced
from 1¸-years to 1¡-years due to non-
compliance—failure to retain required
number of employees, now ends on
1zi¸1izozz
o;iz;i11 No new projects
o8iz¡i11 No new projects
o,iz1i11 Van Buren County Renaissance
ZoneiCity of Hartford subzone—
AmHawk, LLC project
Hartford Van Buren Geographic Renaissance Zone:
Revocation of time extension due to
noncompliance
o,iz1i11 Montcalm and Gratiot County
Renaissance ZoneiCarson Cityi
BloomeriNorth Shade Township
subzone—Renaissance Power, L.C.
project
Carson
City
Montcalm Geographic Renaissance Zone: Tree-
year time extension to begin o1io1izo11
and end 1zi¸1izo18
*Next Michigan Development Corporation: In 2010, a package of bills was signed into law to provide incentives that encourage economic development
and investment, job creation and job retention, and ancillary economic growth delivered by what are called Next Michigan Development Corporations for
businesses engaged in various aspects of multimodal commerce, including movement of products, information, and services via air, roads, rail, or water.
Te package was originally known as the “”Aerotropolis”” legislation because nine municipalities in Wayne and Washtenaw counties near Detroit
Metropolitan Airport had already entered into an interlocal agreement that would allow them to make use of the proposal to employ a variety of
incentives in order to stimulate economic development close to the airport. Tese incentives include real and personal property tax abatements, tax
increment ?nance plans, and renaissance zones. Te Next Michigan Development Act allows the Michigan Strategic Fund to designate up to ?ve Next
Michigan Development Corporations.
Te ?rst Next Michigan Development Corporation was designated by the MSF Board in February 2011. Te Detroit Regional Aerotropolis
Development Corporation includes eight communities in Wayne and Washtenaw counties as well as the Wayne County Airport Authority.
Year-end Report to the Legislature / FY 2011 / 45
MEDC FY 2011
MICHIGAN TOOL & DIE RENAISSANCE
RECOVERY ZONE PROGRAM
Michigan tool and die companies wrestle with economic challenges ranging from foreign competition to
decreased ordering and cash ?ow problems as the automotive industry adjusts to its new z1st century realities.
Without assistance, many of those companies would struggle to stay in business. Te Tool and Die Renaissance
Recovery Zone program helps Michigan’s tool and die industry to reinvent and innovate. Te program provides
tax free status to companies willing to work collaboratively with other in-state tool and die businesses. Te
Recovery Zone is unique because it is industry-based and company-speci?c collaborative of numerous
companies coming together to receive the renaissance zone bene?t. A Recovery Zone may have a duration of
a renaissance zone status for a period of not less than ?ve years and not more than 1¸ years. Te tax relief is
phased out in z¸ percent increments over the last three years of the zone designation.
TOOL & DIE RECOVERY ZONE ACTIVITY
Fiscal Year 2011 (10/01/2010–09/30/2011)
Meeting
date
Company or
Renaissance Zone Location County MSF Board action
1oiz;i1o Vicount Industries, Inc. Farmington
Hills
Oakland Add nine additional years for a total of 1¸
years—end date is now 1zi¸1izozz, member of
Global Tool Alliance, LLC
1oiz;i1o LS Mold, Inc. Holland Allegan Add six additional years for a total of 1z years—
end date is now 1zi¸1izo16, member of Great
Lakes Tool & Die Recovery Zone
1oiz;i1o STM Manufacturing, Inc. Holland Allegan Add six additional years for a total of 1z years—
end date is now 1zi1¸izo1,, member of Great
Lakes Tool & Die Recovery Zone
1oiz;i1o Global Engineering, Inc. Shelby Charter
Twp.
Macomb Join Global Tooling Alliance for ?ve years to
begin o1io1izo11 and end 1zi¸1izo1¸
11i1;i1o Advanced Integrated
Tooling Systems
Chester?eld
Charter Twp.
Macomb Join Tird Coast Tooling Alliance for ?ve years
to begin o1io1izo11 and end 1zi¸1izo1¸
11i1;i1o Mistequay-ISG LLC Saginaw
Charter Twp.
Saginaw Join Tird Coast Tooling Alliance for ?ve years
to begin o1io1izo11 and end 1zi¸1izo1¸
1zio1i1o Carroll Tool & Die Co. Macomb Twp. Macomb Add ?ve additional years for a total of 1o years—
end date is now 1zi¸1izo1,, member of Tird
Coast Tooling Alliance
1zio1i1o CDM Machine Co., Inc. Redford
Charter Twp.
Macomb Join Eastern Michigan Tool & Die Collaborative
for 1o years to begin o1io1izo11 and end
1zi¸1izozo
1zio1i1o Talent Industries, Inc. Redford
Charter Twp.
Wayne Add ?ve additional years for a total of 1¸ years—
end date is now 1zi¸1izozo, member of Eastern
Michigan Tool & Die Collaborative
1zi1¸i1o Michigan International
Tooling Alliance
New Recovery Zone comprised of 1; companies
identi?ed below with various years of the bene?t
granted
1zi1¸i1o Arbor Gage & Tooling,
Inc.
Grand Rapids Kent Participant in Michigan International Tooling
Alliance to begin o1io1izo11 and end
1zi¸1izo1¸
1zi1¸i1o Carbide Form Master,
Incorporated
Spring?eld
Charter Twp.
Oakland Participant in Michigan International Tooling
Alliance to begin o1io1izo11 and end
1zi¸1izo1¸
Year-end Report to the Legislature / FY 2011 / 46
MEDC FY 2011
TOOL & DIE RECOVERY ZONE ACTIVITY continued
Fiscal Year 2011 (10/01/2010–09/30/2011)
Meeting
date
Company or
Renaissance Zone Location County MSF Board action
1zi1¸i1o Hommel-Etamic America
Corporation
Rochester
Hills
Oakland Participant in Michigan International Tooling
Alliance to begin o1io1izo11 and end
1zi¸1izo1¸
1zi1¸i1o I & G Tool Company, Inc. New Baltimore Macomb Participant in Michigan International Tooling
Alliance to begin o1io1izo11 and end
1zi¸1izo1¸
1zi1¸i1o KEO Cutters, Inc. Warren Macomb Participant in Michigan International Tooling
Alliance to begin o1io1izo11 and end
1zi¸1izo1¸
1zi1¸i1o M. Curry Corporation Bridgeport
Twp.
Saginaw Participant in Michigan International Tooling
Alliance to begin o1io1izo11 and end
1zi¸1izo1¸
1zi1¸i1o P.C.S. Company Fraser Macomb Participant in Michigan International Tooling
Alliance to begin o1io1izo11 and end
1zi¸1izo1¸
1zi1¸i1o PT Tech Stamping, Inc. Fraser Macomb Participant in Michigan International Tooling
Alliance to begin o1io1izo11 and end
1zi¸1izo1¸
1zi1¸i1o Praet Tool & Engineering,
Inc.
Macomb Twp. Macomb Participant in Michigan International Tooling
Alliance to begin o1io1izo11 and end
1zi¸1izo1¸
1zi1¸i1o Product & Tooling
Technologies, Inc.
Fraser Macomb Participant in Michigan International Tooling
Alliance to begin o1io1izo11 and end
1zi¸1izo1¸
1zi1¸i1o Troy Industries, Inc. Shelby Charter
Twp.
Macomb Participant in Michigan International Tooling
Alliance to begin o1io1izo11 and end
1zi¸1izo1¸
1zi1¸i1o Fischer Tool & Die
Corporation
Bedford
Township
Monroe Participant in Michigan International Tooling
Alliance to begin o1io1izo11 and end
1zi¸1izo1;
1zi1¸i1o Ecco Tool Co., Inc. Novi Oakland Participant in Michigan International Tooling
Alliance to begin o1io1izo11 and end
1zi¸1izo18
1zi1¸i1o Centerless Rebuilders, Inc. New Haven Macomb Participant in Michigan International Tooling
Alliance to begin o1io1izo11 and end
1zi¸1izozo
1zi1¸i1o Cole’s Machine, Inc. Davison Genesee Participant in Michigan International Tooling
Alliance to begin o1io1izo11 and end
1zi¸1izozo
1zi1¸i1o Fullerton Tool Company,
Inc.
Saginaw Saginaw Participant in Michigan International Tooling
Alliance to begin o1io1izo11 and end
1zi¸1izozo
1zi1¸i1o Innovative Mold, Inc. Washington
Charter Twp.
Macomb Participant in Michigan International Tooling
Alliance to begin o1io1izo11 and end
1zi¸1izozo
Year-end Report to the Legislature / FY 2011 / 47
MEDC FY 2011
TOOL & DIE RECOVERY ZONE ACTIVITY continued
Fiscal Year 2011 (10/01/2010–09/30/2011)
Meeting
date
Company or
Renaissance Zone Location County MSF Board action
1zi1¸i1o Metal Processors, Inc. Lincoln
Charter Twp.
Berrien Revocation of existing Tool & Die Recovery
Zone property due to company closure, former
member of Berrien Tooling Coalition
1zi1¸i1o C.H. Industries, Inc. Shelby Charter
Twp.
Macomb Join Michigan Coast to Coast Tool & Die
Collaborative for ?ve years to begin o1io1izo11
and end 1zi¸1izo1¸
1zi1¸i1o DS Mold, Inc. Belding Ionia Allow entire company property in the city of
Belding to receive the Tool & Die bene?t to
begin o1io1izo11 and end 1zi¸1izozo, member
of Central Michigan Collaborative
1zi1¸i1o Proper Group
International, Inc.
Warren Macomb Join Eastern Michigan Tool & Die Collaborative
for ?ve years to begin o1io1izo11 and end
1zi¸1izo1¸
1zi1¸i1o Tranor Industries, L.L.C. Detroit Wayne Join Michigan Coast to Coast Tool & Die
Collaborative for 11 years to begin o1io1izo11
and end 1zi¸1izoz1
1zi1¸i1o BuhlerPrince, Inc. Holland Ottawa Join Strategic Tool Solutions Collaborative for 1z
years to begin o1io1izo11 and end 1zi¸1izozz
1zi1¸i1o International Mold
Corporation
Clinton
Charter Twp.
Macomb Join Strategic Tool Solutions Collaborative for 1¡
years to begin o1io1izo11 and end 1zi¸1izoz¡
Year-end Report to the Legislature / FY 2011 / 48
MEDC FY 2011
BUSINESS ATTRACTION AND RETENTION
In addition to assisting companies with a full complement of ?nancing programs and economic development
incentives, the MEDC provides many other programs and services to businesses. Te MEDC’s Retention
and Attraction Team acts as the agency’s sales and marketing divisions for Michigan companies. Business
development managers (nors) deliver business and retention services based on speci?c company needs. Te
BDMs are regionally assigned. Contact with companies occurs through in-person visits, usually in partnership
with a local economic development partner. In general BDMs meet with a company once a year. Additional
meetings happen throughout the year when the company is considering an expansion or retention project.
BDMs participate in three types of company visits:
• Retention—yearly “check-up” meeting designed to learn how the company is doing and to provide
information on any new state programs,
• Project—related to a speci?c retention or expansion project that may result in the MEDC o?ering the
company an incentive package to secure their investment or retain the company, and
• Customer support—providing support to a very large corporation where an ongoing relationship is required
or visits with other companies when there is a concern or issue that is not project related.
Te MEDC provides services to complement the state’s business retention and attraction e?orts. Some of these
services include workers’ compensation cost control that provides employers with assistance in designing and
implementing strategies to reduce workers’ compensation costs, Michigan Business Ombudsman o?ce that
provides impartial, independent, and con?dential assistance in resolving disputes and investigating business
complaints against state government agencies, business operating cost estimating that o?ers customized
estimates to new or expanding businesses by analyzing company-speci?c data to estimate the impact of a ?rm’s
expansion on its business costs, assisting companies in ?nding property for expansions, and a suite of talent
enhancement services to ?rms that need to ?nd the right people for their business.
VISIT AND BUSINESS SERVICE ACTIVITIES
Fiscal Year 2011 (10/01/2010–09/30/2011)
No. of Occurrences
Visit activities
Michigan retention visits 1,6¸¸
Michigan customer support visits ¡¸1
Michigan project visits ¸z,
International visits ¸8
Visits (other) z;6
Total visits 2,949
Business service provided to MEDC customers
Assistance—community 6z
Assistance—general ¡¸
Assistance—technical 1o
Incentive estimating ¡1,
Ombudsman 1¡z
Other services 6;
Referral ¸;
Research 1;¸
Site selection ¡8
Talent acquisition ,
Workers Compensation cost control 61
Total 1,071
Year-end Report to the Legislature / FY 2011 / 49
MEDC FY 2011
INTERNATIONAL ATTRACTION AND RETENTION
Along with a comprehensive retention and growth strategy, the MEDC works aggressively to cultivate and
maintain relationships with international companies looking to establish or strengthen their presence in North
America. Michigan o?ers numerous strengths to global companies: a highly skilled and highly productive
workforce, manufacturing infrastructure, strong research and development universities, and a competitive
business climate. Foreign direct investment in Michigan is continuing to grow. Tere are over ¡,;oo divisions,
a?liates, and subsidiaries in Michigan representing over ¡o countries and encompassing all industry and service
sectors. Japan, Germany, the U.K., and Canada lead in the number of international operations in Michigan. Some
of the major international companies in Michigan include Toyota Motor Company, Nissan, Hyundai, Robert
Bosch, Magna, LG Chem, AVL, Valeo, Tata, Fiat, Inalfa, Swedish Biogas, URV, BAE Systems, and many more.
INTERNATIONAL ATTRACTION AND RETENTION
Fiscal Year 2011 (10/01/2010–09/30/2011)
Company County
Opportunity
industry/project
Projected
new
investment
Projected
new
employees
Projected
retained
jobs
Parent
country
Geislinger
Corporation
Calhoun automotiveijob training s¡¡¸,¸o8 ¸ 8 Austria
Seissenschmidt
Corporation Precision
Components
Iosco automotiveijob training s¡o6,ooo z 16 Germany
Michigan Automotive
Compressor, Inc.
Jackson automotiveiretention s;z,ooo,ooo o ¸6z Japan
Dematic Corporation Kent manufacturingiexpansion s1o,,o1,ooo ¸o¸ o Germany
Hi-Lex Controls,
Incorporated
Lenawee automotive new press s8¡o,ooo ¸ o Japan
Ceratizit USA, Inc. Macomb automotiveibrown?eld s1¸,,¸o,ooo ;¸ 1¡o Austria
GETRAG
Corporation
Macomb
R&Diengineeringijob
training
s¸zo,ooo o ¸ Germany
Benteler Automotive
Corporation
Oakland
automotiveirelocation of
national headquarters
s¸,,66,¸oo z¸o o Germany
Blaupunkt Antenna
Systems USA, Inc.
Oakland
automotive R&Di
testingiNorth American
headquarters and R&D
center
s¡,;z;,ooo 1o¡ o Germany
Denso International
America, Inc.
Oakland automotiveijob training s,,¡¸o,ooo o zoo Japan
Dokka Fasteners,
Incorporated
Oakland
alternative energy-windi
new facility
szo,¸,6,ozz ,o o Switzerland
Kenersys Americas,
LLC
Oakland
alternative energy-windi
new project
s1o,z¡z,ooo 16o o Germany
KOSTAL Kontakt
Systeme, Inc.
Oakland
alternative energy-solari
connector production
facility, applications in
solar, battery and electric
vehicle industries
sz;,1¸6,ooo z¡; o Germany
Magna Steyr North
America
Oakland
automotiveiengineering
services contract
s;6¸,ooo zoo o Austria
Year-end Report to the Legislature / FY 2011 / 50
MEDC FY 2011
INTERNATIONAL ATTRACTION AND RETENTION continued
Fiscal Year 2011 (10/01/2010–09/30/2011)
Company County
Opportunity
industry/project
Projected
new
investment
Projected
new
employees
Projected
retained
jobs
Parent
country
Otto Bock
Polyurethane
Technology, Inc.
Oakland
automotiveitech center
and production facility
for polyurethane engine
dampening components
s1¸,¸¡;,ooo ,8 o Germany
P3-North America,
Inc.
Oakland
information technologyi
P¸ expansion
s¸¸z,1¸o 6¸ o Germany
TyssenKrupp
System Engineering,
Incorporated
Oakland
manufacturing-advancedi
job training
so o z8 Germany
Weber Automotive
Corporation
Oakland
automotiveimanufacturing
facility for engine
components
sz¡,8¡;,ooo z8o o Germany
American Broach and
Machine Company
Washtenaw
machineryimachine toolsi
R&D center
sz¸,ooo,ooo ¡¸ o China
Chemetall U.S., Inc. Wayne
chemicalsiconsolidate
in Monroe
szo,;¸o,ooo o ;¡ Germany
Mercedes-Benz
Hybrid, LLC
Wayne automotiveijob training so o 1oo Germany
Total $260,178,960 2,127 1,131
Year-end Report to the Legislature / FY 2011 / 51
MEDC FY 2011
TALENT ENHANCEMENT
Te MEDC established a talent enhancement unit in early zo11. Te goals of the MEDC talent enhancement
team are to attract, retain and develop talent to support business attraction, economic gardening and
entrepreneurship. Tey develop and implement key statewide programs, support local talent partners with a
variety of tools and resources, and help employers ?nd talent. Tey partner closely with the MichiganWorks!
agencies, community colleges, local economic development organizations, and many other key entities to help
reinvent Michigan. Talent enhancement’s key values include customer responsiveness, creativity, e?ciency,
teamwork, collaboration, and having an action orientation.
Te talent enhancement team develops local talent enhancement capability and capacity, provides talent
enhancement support to employers, connects job seekers to opportunities, and helps support attraction
projects.
Te talent enhancement team hosted its inaugural LiveWorkDetroit day on March z¸. LiveWorkDetroit!
showcases Detroit as the place for Michigan’s college graduates and young professionals to live and work. Te
day involved a tour of the best places to live, work and hang out in Detroit. Along the way, students had an
opportunity to meet the entrepreneurs and professionals who call the city home.
Te MEDC began a statewide roll-out of the Michigan Shifting Gears program—a training program to teach
seasoned business professionals how to take the skills and talent developed in corporate settings and reframe
and adapt them to provide value to small businesses. Te program ?rst launched in zoo, in partnership with
Ann Arbor SPARK.
Te MEDC also launched a new talent portal on its website designed to help skilled professionals connect
with employers. Trough the MEDC job portal, located at www.hiremi.org, employers can register to post
openings and work closely with the MEDC’s talent acquisition team to devise strategies to meet their talent
needs. Companies posting on the job portal also will have access to the MEDC’s other talent acquisition
services, including targeted marketing and social media outreach, career events, assistance with identifying
relocation services, and a triage approach to addressing hard-to-?ll positions and hiring challenges. Te portal
also allows job seekers to search for positions around the state, create pro?les, and add their resumes to the
talent database. It is currently being used in concert with the Michigan Talent Bank. Both systems are working
together to e?ectively connect Michigan’s businesses and job-seekers. Te goal for the future includes designing
one job portal system that combines the strengths of both of the state’s current operating systems, to create a
world-class, e?cient jobs resource.
Among the many creative tools the talent enhancement team is working on to assist job creators and job
seekers, they are partnering with universities and community colleges to discuss ways to increase capacity
for high-demand skills. No other state is as aggressively seeking to quantify talent information, partner with
universities and community colleges, and to implement rapid change across the educational spectrum. Tey
also are working closely with the Michigan Department of Education on a number of exciting initiatives.
Michigan has an opportunity to create a ground-breaking, innovative approach to talent development.
Looking forward to ?scal year zo1z, there are many talent issues that need to be addressed by the creation of an
overall strategy that ties together all pieces of the “talent pipeline.”
Year-end Report to the Legislature / FY 2011 / 52
MEDC FY 2011
URBAN ECONOMIC DEVELOPMENT
A priority of the MEDC is to revitalize Michigan’s urban centers. Te MEDC established an Urban Economic
Development unit in January zo11. It is charged with leading e?orts to foster an entrepreneurial atmosphere
that will support job growth, develop and retain young talent, strengthen training and business development
services and improve access to capital. Immediate areas of focus include Detroit, Pontiac, Flint, Saginaw and
Benton Harbor. Te unit also collaborates on job creation and retention projects. Te MEDC’s urban approach
includes a focus on supporting business sustainability in the small business segment that the MEDC would not
normally be engaged with (e.g., retail, food, garment, etc.).
Examples of recent urban projects supported by the MEDC include:
• MEDC provided s1¸o,ooo matched support with the New Economy Initiative (NEI) for the Shifting
Gears program to place ?ve mid-level executives in key positions within City of Detroit government to
a?ect positive change and e?ciencies in areas such as community relations, ?nanceipurchasing, ?scal
management–z1st century, technology, and artsiculture. Combined funding provides for one year
placements.
• MEDC provided s¸o,ooo in support of the Detroit Economic Growth Corporation (ovoc) green grocer
initiative providing technical, marketing, and distribution support to the 8o independent grocers within
the city. In addition, the MEDC provided assistance to the city’s only African-American-owned grocer,
Metro Foodland, to open a farmer’s market stand to increase access to locally grown fresh produce to the
community.
Te MEDC also introduced a kitchen incubator pilot, which provided access to a licensed commercial
kitchen to several food processors who had a de?ned product but were lacking in expertise to access major
distribution points and other technical points in running a business. A team of professionals from the Michigan
Small Business & Technology Development Center (MI-SBTDC), Center for Empowerment and Economic
Development (CEED), Micro Lenders, MSU Product Center, and MEDC sta? provided assistance with business
plan development, ?nancials, and product distribution.
Te owner of the Ice Cream Place, a participant in the program, was a very small operator in providing
excellent varieties of homemade ice cream from a home based operation driven by individual and event orders.
As a result of this pilot, the product has been picked up for distribution in Whole Foods and Metro Foodland.
Te business has received product packaging assistance from the MSU Product Center, and incorporated bar
coding to manage inventory and sales. In addition, the company bene?ted from services provided by a Shifting
Gears graduate to help with the business model.
Te Snyder administration has created an O?ce of Urban Initiatives to proactively address issues in Detroit
and the rest of Michigan’s major urban centers. In addition to Detroit, they will look to establish o?ces in Grand
Rapids and in the Flint and Saginaw areas. Te o?ce also will work to support entrepreneurs as they revitalize
Michigan cities one neighborhood at a time. Te MEDC’s Urban Economic Development team will work in
partnership with the O?ce of Urban Initiatives to achieve these goals.
Year-end Report to the Legislature / FY 2011 / 53
MEDC FY 2011
PLACEMAKING/COMMUNITY DEVELOPMENT
Te MEDC’s Community Assistance Team (CATeam) is dedicated to helping all Michigan communities both
urban and rural. Te team serves as the community’s ?rst point of contact within state government. Contact
with communities, at a minimum, occurs annually through in-person visits, while project scoping and technical
assistance visits are provided as requested. Te CATeam strives to strengthen communities by ensuring access
to economic and community development services and programs that cultivate sustainable projects through
placemaking. Tis is accomplished by:
• Serving the individual needs of communities seeking assistance with community development
• Working in partnership with other organizations to design programs that foster a sense of place
• Facilitating collaborative e?orts with other state agencies around placemaking
• Launching a statewide Redevelopment Ready Communities` Program
Te MEDC, in partnership with the Michigan State Housing Authority (MSHDA), acquired the Redevelopment
Ready Communities` (RRC) Program from the Michigan Suburbs Alliance. RRC will support Michigan
communities to become development ready, competitive and “open for business.” RRC is a strategic tool
that leads change in the development culture for communities, building con?dence among businesses and
developers by encouraging communities to adopt innovative strategies and e?cient development processes.
Te CATeam is regionally assigned and has built partnerships within MEDC, neighborhood organizations
and regional agencies to assist the development or redevelopment of Michigan’s downtowns. Te team also
provides services to complement MSHDA, the Michigan Department of Transportation, Michigan Department
of Agriculture and Rural Development, Michigan Department of Natural Resources, and Michigan Department
of Environmental Quality’s placemaking e?orts.
TECHNICAL ASSISTANCE AND PROJECT FINANCIAL ASSISTANCE
Fiscal Year 2011 (10/01/2010–09/30/2011)
Technical Assistance No. of Occurrences
Community visitsiproject scoping meetings
Total visits 214
Trainings
Community Development Block Grant
Gaylord z¸
South Haven ¸z
Marquette ¡¸
Lansing ¸¡
Community Assistance Team
Ann Arbor z1
Traverse City z¡
Kalamazoo ¡¸
Marquette ¸6
Total attendees 260
CATeam Project Financial Assistance
Act 381 Work Plans for Tax Increment Financing z6 projects, s6¡,8¡¸,8;z
Brown?eld MBT Credits 86 projects, s1oo,8o,,oo¡
Community Development Block Grants—community development projects ¡, projects, s1z,¡68,68,
Year-end Report to the Legislature / FY 2011 / 54
MEDC FY 2011
TRIBAL BUSINESS DEVELOPMENT
Te MEDC launched its Tribal Business Development e?orts in late zo1o to encourage Michigan’s 1z federally
recognized Indian tribes to expand their business portfolios in Michigan. Te goal of the Tribal Business
Development unit is to be a resource to Michigan’s 1z federally recognized Indian tribes in achieving sustainable
tribal economies through business diversi?cation, and to build state-tribal relationships that foster business
development beyond gaming.
Five of Michigan’s tribes are located in the Upper Peninsula: Bay Mills Indian Community, Hannahville
Potawatomi Indian Community, Keweenaw Bay Indian Community, Lac Vieux Desert Band of Lake Superior
Chippewa Indians, and the Sault Ste. Marie Tribe of Chippewa Indians. Te remaining seven tribes are located
in the Lower Peninsula: Grand Traverse Band of Ottawa and Chippewa Indians, Match-E-Be-Nash-She-Wish
Band of Pottawatomi Indians (Gun Lake Tribe), Little River Band of Ottawa Indians, Little Traverse Bay Band of
Odawa Indians, Nottawaseppi Huron Band of Potawatomi Indians, Pokagon Band of Potawatomi Indians, and
the Saginaw Chippewa Indian Tribe.
Tribes are unique but have common economic interest in job retentionicreation, business development,
infrastructure enhancement, alternative energy, entrepreneurship programs, and contracting opportunities.
Fiscal year zo11 has been focused on developing relationships and strategic partners that further tribal business
development, identifying federal, state, local and other tribal business and ?nance resources, coordination
and collaboration of resources, encouraging tribes to adopt proven economic strategies and business models
that have succeeded in Indian country, and providing technical assistance for specialized legal, ?nancial and
business services required for tribal business development.
Year-end Report to the Legislature / FY 2011 / 55
MEDC FY 2011
MICHIGAN COUNCIL FOR ARTS AND CULTURAL AFFAIRS
Te Michigan Council for Arts and Cultural A?airs (rc»c») serves as the state agency that administers
matching grants and appropriations, facilitates communication networks, and develops funding resources
for arts and cultural activities. Te zo11 grantees of MCACA grants reported over 11 million individuals—
including over ?ve million youth—bene?tted from MCACA grants. Te grantees also report contracting with
¡¸,¡,¸ Michigan artists.
Not re?ected in the direct numbers summarized below are the grants made with MCACA monies through
regranting agencies and through the Touring Arts program, which is administered for MCACA by the Michigan
Humanities Council:
Touring Arts: 1o1 grants awarded totaling s¡¸,ooo
Regional Regranting: 16o awards totaling s¸6,,¸1z
Terefore, funds appropriated for MCACA in ?scal year zo11 resulted in 6o6 grants being made across the state
for arts and cultural activities.
MCACA GRANTS
Fiscal Year 2011 (10/01/2010–09/30/2011)
Grant type
Number of
awards
Individuals
bene?ting Grant amount Cash and overall match
Bus grants 11o 1¸,¸;1 s¸,,z1¸ s1z1,¡;, szo8,1¡z
New leaders program 1¸ ;,1¡¡ s¸1,8z8 s¸;,8¡8 s8,,1oz
Operational and project
support
1;8 8,o1¸,¡;; s1,¡¸8,6¸o s1,¸,¸¸z,¡1z szoo,¡¡8,;;;
Regional Regranting
Mini-grant Program
¸8 ¸61,o18 s¡,¸,¡6z sz,¸o¡,6;¸ s¸,¸¡;,;68
Services to the ?eld 6 z,¡¸6,o;1 s¸z6,¸18 s;,6oz,z¸; s;,61¸,¸81
Total 235 11,033,281 $2,349,673 $203,798,651 $211,909,170
Year-end Report to the Legislature / FY 2011 / 56
MEDC FY 2011
MICHIGAN STRATEGIC FUND
MICHIGAN STRATEGIC FUND EXPENDITURES*
Fiscal Year 2011 (10/01/2010–09/30/2011)
Programs
State
FTE
State
expenditures
Corporate
expenditures
Total
expenditures
Business Development and Attraction ¸o.o s¡,,,o,¸z6 s¸,¸1¸,,;¸ s8,¸o6,¸o1
Business Support (includes CDBG, EDJT and
z1st Century Jobs Fund Administration)
z¸.o s8,o6;,88¸ sz,z¸,,ooz s1o,¸z6,88;
Michigan Defense Center z.o sz,¸1;,z,¡ sz,¸1;,z,¡
Film O?ce ¸.o s;1z,z¡, s;1z,z¡,
Marketing and communications (includes Travel Michigan,
21st Century Jobs Fund and Michigan promotion programs)
z¸.o sz6,o¸¡,1,o s;,¡o,,¡,¸ s¸¸,¡¡¸,68¸
Other (administration, compliance, and non-program) ¸¸.o s6,¡1;,,¸o s¸,¡1¸,6o¡ s11,8¸¸,¸¸¡
Sub-total programs 118.0 $48,739,894 $18,400,076 $67,139,970
GRANTS AND OTHER PROGRAMS
z1st Century Jobs Investment Program
(includes loans and investments)
sz6,¸¸8,zoz sz6,¸¸8,zoz
Centers of Energy Excellence s1¸,8z1,zz6 s1¸,8z1,zz6
Michigan Supplier Diversi?cation—collateral program s1¸,6,,,zoo s1¸,6,,,zoo
Choose Michigan Loan Fund s;,ooo,ooo s;,ooo,ooo
Community Development Block (cono) s6¡,,;1,6,; s6¡,,;1,6,;
Closing Fund s¸,¡¸8,,16 s¸,¡¸8,,16
Detroit Institute of Arts s1o,ooo,ooo s1o,ooo,ooo
Growth Business Fund s¡,¡z,,¸oo s¡,¡z,,¸oo
Alternative energy programs (Battery Alliance) s1,z¸¸,o¸1 s1,z¸¸,o¸1
Michigan Manufacturing Technology Center°° sz,ooo,ooo sz,ooo,ooo
SBTDC Emerging Technology (company support) s1,¡oo,ooo sz,8¸8,¸¸¸ s¡,z¸8,¸¸¸
Federal grant—Flint Biogas and Biofuels s,¡z,86¸ s,¡z,86¸
Follow-on funds sz,¸¸1,;z¸ sz,¸¸1,;z¸
Research studies s¸,,,¸1¸ s¸,,,¸1¸
MBSii Wave ¸ and Enterprise Permitting and System
Consolidation
s8¸o,18, s1,8,,,¸o; sz,;¡,,6,6
2nd Tier Service Partner and other competitions s;;;,z81 s;;;,z81
Urban and rural economic development projects s¡,¡,z¡o s¡,¡,z¡o
Michigan Council for Arts and Cultural A?airs sz,¸8¡,8¸o sz,¸8¡,8¸o
Michigan Core Communities Fund s¸,¸¸6,o6o s¸,¸¸6,o6o
Business incubators s8;6,¸8, s8;6,¸8,
Economic Development Job Training s¡,88,,¸¸1 s¡,88,,¸¸1
Miscellaneous s1;8,¡68 s1;8,¡68
Sub-total grants $150,007,144 $23,025,399 $173,032,543
Total programs and grants $198,747,038 $41,425,475 $240,172,513
* Cash and accrued expenditures made during ?scal year 2011, including payments against prior year encumbrances and work projects.
** Grants made to leverage federal grants.
Year-end Report to the Legislature / FY 2011 / 57
MEDC FY 2011
TRAVEL MICHIGAN
FISCAL YEAR 2011 (10/01/2010–09/30/2011)
Pure Michigan Marketing Campaign
Te Pure Michigan campaign was recognized as a top advertising campaign by the Detroit advertising
community in December zo1o. Te campaign was honored with the “Best of Show” award D Show, an annual
event celebrating the breadth of ideas, depth of talent and craft of the advertising world. Pure Michigan also
was recognized by the Advertising Research Foundation in March zo11. Te campaign won a prestigious David
Ogilvy Award for Excellence in Advertising Research. Pure Michigan’s advertising agency, McCann Erickson
Detroit, shared honors with its media arm, Universal McCann, and research partner Longwoods International.
Te David Ogilvy Awards honor extraordinary and creative use of research in the development of successful
advertising campaigns. Tese awards join an already crowded Pure Michigan trophy case of nine Mercury
Awards, including Best State Tourism Advertising Campaign, Best State Tourism Television Commercials and
Best State Tourism Radio Commercials, along with an accolade from Forbes magazine as one of the 1o best
tourism campaigns of all-time.
In August zo11, the National Council of State Tourism Directors (×cs) named Michigan’s George
Zimmermann the State Tourism Director of the Year for zo11. Te NCSTD, an a?liate of the U.S. Travel
Association, has recognized a State Tourism Director of the Year each year since 1,;o to honor a tourism
director that has clearly in?uenced the obvious and measurable improvement of a state or territory’s ‘travel and
tourism pro?le’ with their leadership.
Due to reduced funds, the zo1o fall Pure Michigan advertising campaign was canceled for the ?rst time
since zoo¸. However, legislation signed into law in December zo1o provided s1o million of the s;¸ million
appropriated for the z1st Century Job Trust Fund for ?scal year zo11 to be used for the promotion of tourism
in Michigan. Funding the Pure Michigan campaign was highlighted in Governor Rick Snyder’s zo11 State of
the State Address. Legislation was later signed into law that amended the Michigan Strategic Fund (rsr) Act
to add the promotion of tourism in Michigan to the authorized uses of MSF money and increased the amount
of money from the z1st Century Jobs Trust Fund that may be spent for tourism promotion in ?scal year zo11
from s1o million to szo million. Te bill also speci?ed that the promotion of tourism in the state is an ongoing
purpose of the z1st Century Jobs Trust Fund, which will permit the MSF Board in future years to allocate funds
from z1st Century Jobs Trust Fund appropriations to tourism promotion. Tis additional funding was critical
to maintaining the momentum generated by recent Pure Michigan campaigns. It covered general marketing
activity, a regional winter advertising buy and a national cable springisummer buy as well as regional springi
summer and fall buys.
Tere were z1 new commercials produced in ?scal year zo11, including partner ads (seven television,
1¡ radio). Regional markets for ?scal year zo11 (Travel Michigan and partner) included:
Since its launch in zoo6, the award-winning Pure Michigan campaign has attracted seven million new, out-of-
state visitors to the Great Lakes state, visitors who spent sz billion at Michigan businesses and paid s1¸8 million
in Michigan taxes, primarily sales tax. Te campaign generates s¸.z, in tax revenue for the state for each dollar
spent on Pure Michigan advertising.
Battle Creek, MI
Bay City, MI
Chicago, IL
Cincinnati, OH
Cleveland, OH
Columbus, OH
Dayton, OH
Detroit, MI
Flint, MI
Ft. Wayne, IN
Grand Rapids, MI
Green Bay, WI
Indianapolis, IN
Kalamazoo, MI
Lansing, MI
Milwaukee, WI
Saginaw, MI
South Bend, IN
Southern Ontario
St. Louis, MO
Toledo, OH
Traverse City, MI
Year-end Report to the Legislature / FY 2011 / 58
MEDC FY 2011
Travel Web Activity on www.michigan.org
Tere were 8., million web visits in ?scal year zo11. Tis compares to 8.8 million visits last year, an increase of
1.¡ percent over last year.
Note: Te reason for the discrepancy in 2010 visits is we switched tracking methodology in 2011 from a log ?le
based system to a tagging system
Number of Visits Passed on to Travel Industry Partners’ websites
Tere were 6.1 million click-throughs in ?scal year zo11. Tis compares to 6.6 million last year, an 8.o percent
decrease from last year. Click-throughs are de?ned as the number of times www.michigan.org web visitors
clicked on a link and were transferred to a travel industry private sector website.
In August zo11, the Pure Michigan Facebook page reached a record of more than ¸oo,ooo fans—the highest
number of fans for any state tourism Facebook page in the nation. Te Pure Michigan eNewsletter also passed
the ¸oo,ooo subscriber mark. Te Pure Michigan Facebook page also began utilizing the Facebook Question app
to give fans an opportunity to answer a Pure Michigan question every week. Te ?rst question posted, “What is
your favorite Michigan made food°”, received more than ;¸,ooo votes in just z¡ hours.
Two of Michigan’s best-known brands, Michigan International Speedway (MIS) and Pure Michigan, teamed
up to host the Pure Michigan ¡oo NASCAR Sprint Cup race at MIS in August zo11. Tis partnership brought
the Pure Michigan message to millions of NASCAR fans nationwide who watched the Pure Michigan ¡oo on
ESPN as well as the tens of thousands who came to MIS on race days. Te one-year partnership joining these
two brands, both focused on attracting new visitors to Michigan, is believed to be the ?rst time a state brand is
featured as the title of NASCAR’s premier stock car series.
With the success of zo11, MIS and Pure Michigan are again teaming up to host the Pure Michigan ¡oo
NASCAR Sprint Cup Series race at MIS in August zo1z. Te three-year partnership is a continuation of what
started in zo11. Te inaugural Pure Michigan ¡oo received overwhelming feedback from fans and tourists alike.
Travel Michigan rolled out an o?cial Pure Michigan merchandise line in early ?scal year zo11, including
sweatshirts, T-shirts, golf shirts, hats, umbrellas, travel mugs, golf balls, and more. Merchandise featuring
the Pure Michigan logo is now sold in ¡¸ Meijer stores across the state of Michigan. Travel Michigan also
announced a new Pure Michigan: Eating Fresh and Local in the Great Lakes State cookbook, published by
Midwest Living, that includes more than 1¸o pages of recipes and features about Michigan’s menu of culinary
o?erings in big cities and small towns. Te cookbook showcases Michigan’s culinary specialties and o?ers ideas
of how to enjoy a visit to savor and explore Pure Michigan products at u-pick farms, orchards, farmers’ markets,
restaurants, and more than 8o vineyards and wineries.
Media Familiarization Media Tours
Domestic Familiarization Media Tours (typically 20–30 travel writers from North America)
February ;–11: Twenty-?ve travel writers and editors representing national and regional media outlets split
between Crystal Mountain Resort and Spa (Tompsonville) and MarquetteiMunising
May 16–1,: Twenty-four travel writers and editors representing national and regional media outlets
experienced Detroit
August 1¡–1,: Twenty travel writers and editors toured “Te Great Waters” area, Eastern Upper Peninsula
(Sault Ste. Marie, Paradise, Grand Marais, St. Ignace, De Tour, Les Cheneaux, etc.)
International Familiarization Media tours (typically 1–5 travel writers)
September: German travel writer visit to Detroit, Frankenmuth, Grand Haven, Muskegon
October: United Kingdom travel writer visit to New Bu?alo, Holland, Whitehall, Silver Lake, Rothbury
Golf Writer Familiarization Tour (typically 6–8 golf writers)
Summer: Tirty-six golf writers and editors representing international, national and regional media outlets
experiences golf coursesicommunities in: Grand Rapids, New Bu?alo, Detroit, Traverse City, South Haven,
Gaylord, Oscoda, St Joseph, Grand Haven, Holland, Lewiston, Roscommon, Lansing, Petoskey, Arcadia,
Tompsonville, Bellaire, Brimley, Saugatuck.
Year-end Report to the Legislature / FY 2011 / 59
MEDC FY 2011
Individual Familiarization Tour
December: Travel writer in Detroit
In addition to the familiarization tours, Travel Michigan promotes all Michigan communities…all of the
time, with www.michigan.org and now even more than ever with an increasingly growing social presence
on Facebook, Twitter, YouTube, Flickr, e-newsletters, and the Pure Michigan Connect blog. Travel Michigan
also promotes all areas of the state with its WJR radio program in Detroit, which now also airs on stations in
Grand Rapids, Traverse City, Lansing, Kalamazoo, Hastings and other Michigan Talk Radio Network stations.
In addition, Travel Michigan does radio interviews every week on a network of seven stations featuring
conversation about weekly events, and often on other stations as well.
Partnership Programs
Te Partnership Program is intended to extend the marketing reach of Pure Michigan by leveraging private-
sector marketing dollars to promote Michigan. Te program’s key markets are Chicago, Cleveland, Indianapolis,
Cincinnati, Milwaukee, Columbus, Dayton, St. Louis, and Southern Ontario, Canada and feeder markets are
Toledo, Green Bay, South Bend, and Fort Wayne.
In ?scal year zo11, ¸o partnerships committed more than s¸.1 million for radio, billboard and online
advertising. Travel Michigan matched the private-sector partnership dollars for an total budget of s6.z million.
Te Travel Michigan advertising partnership program was launched in zooz. Interest in the program has
grown over the years, from three partners in zooz to ¸o partners in zo1o and zo11. Tis has been a win-win
program for the partners and Travel Michigan.
In an e?ort to accommodate the entire tourism industry, Travel Michigan has developed four partnership
programs: National Cable Advertising Partnerships (a pilot program in zo11), Out-of-State Advertising
Partnerships, Pay-per-Click Partnerships, and In-State Advertising Partnerships. All partnership advertising
includes the Travel Michigan brand identity and creative strategy to keep the messages consistent. Program
participants also receive value added bene?ts of featured web presence and public relations support.
Below is a list of 2011 partnerships:
National Cable TV Partners—$500,000 from each
Traverse City Convention & Visitors Bureau
Mackinac Island
Te Henry Ford
Out-of-State Advertising Partners
Ann Arbor Area Convention & Visitors Bureau
Beachtowns (nine communities along Lake Michigan coastline)
Frankenmuth
Greater Lansing Convention & Visitors Bureau
Mackinac Island
Downtown Grand Rapids—Grand Rapids Convention & Visitors Bureau
Blue Water AreaiPort Huron
Great Lakes Bay Region
Traverse City Convention & Visitors Bureau
Muskegon
Mackinaw City
Michigan Apple Committee
Michigan Arts Council
Detroit Convention & Visitors Bureau
Holland Convention & Visitors Bureau
Te Wilds of Michigan (Western Upper Peninsula)
St. Ignace
Michigan Snowsports Association (skiing)—winter
Kalamazoo Convention & Visitors Bureau
Mecosta CountyiBig Rapids
Monroe
Year-end Report to the Legislature / FY 2011 / 60
MEDC FY 2011
In-State Advertising Partners
Alpena
Flint
Sault Ste. Marie
Te Henry Ford
Downtown Grand Rapids—Grand Rapids Convention & Visitors Bureau
Frankenmuth
Great Waters of the Upper Peninsula (Eastern Upper Peninsula)
Ludington
Blue Water AreaiPort Huron
Sunrise Coast (seven communities along Lake Huron coastline)
Silver Lake Sands Dunes
ColdwateriBranch County
Michigan Apple Committee
Holland Convention & Visitors Bureau
Mecosta CountyiBig Rapids
Monroe
St. Ignace
Te Wilds of Michigan (Western Upper Peninsula)
Pay-Per-Click Partners
Muskegon County Convention & Visitors Bureau
Ramada Inns
Traverse City Convention & Visitors Bureau
Year-end Report to the Legislature / FY 2011 / 61
MEDC FY 2011
BUSINESS MARKETING
FISCAL YEAR 2011 (10/01/2010–09/30/2011)
Business Marketing Campaign
Te Michigan Economic Development Corporation (rvoc) implemented the sixth year of the Upper Hand
business marketing program in October zo11. Te Upper Hand campaign targets C-level executives (CEOs,
CFOs, site consultants, etc.) using a testimonial-style marketing strategy that encourages businesses to contact
the MEDC to see how their business can “get the upper hand,” although the campaign was scaled-back due to
reduced funding levels. Over ¸o successful executives have shared why they chose to locate or expand their
business in Michigan in a series of national and international television and radio spots. Actor and business
owner Je? Daniels introduces these executives during the Upper Hand ad spots. No new commercials were
produced nor any new web-based products created in ?scal year zo11.
Using an independent research ?rm, the MEDC has conducted tracking studies to generate a pre- and
post-assessment of the e?ectiveness of the Upper Hand advertising campaign in changing C-level executives’
attitudes and behaviors about Michigan as a place to start and do business. Te studies have been used to
determine changes in awareness of the campaign, assess changes in how business leaders feel about Michigan
as a place to do business, and identify actions taken as a result of the campaign. Aided awareness of the Upper
Hand campaign among National executives dropped from z¸ percent in zoo, to 1; percent in zo1o. Aided
awareness among Michigan executives dropped from 6o percent to ¡¸ percent. Unaided awareness remained
fairly consistent to o? slightly from last year. Consideration of Michigan for relocationiexpansion remains
extremely low. Only ¸.o percent of national executives report considering the state of Michigan as a location for
relocationiexpansion of their business. Positively, 1o percent of in-state executives would consider Michigan for
expansion of their business, a signi?cant increase from one year ago.
In January zo11, the Michigan Strategic Fund (MSF) and MEDC made the decision to consolidate its
marketing and communication programs under the Pure Michigan brand and the Upper Hand campaign was
suspended. Te Pure Michigan brand also is in use as the MEDC corporate identity in addition to targeting
tourist, business, talent, and urban audiences. Te MSF and MEDC issued Request For Proposals (RFPs) in
September zo11 to provide marketing and advertising services to help the MEDC market the state and build
the Pure Michigan brand. Te dual RFPs, funded by the z1st Century Jobs Fund, focuses on the MEDC’s other
e?orts to market Michigan overall and as a business destination. Together, the combined e?orts show Michigan
as an ideal place to visit, live, and work with goals including talent attraction and growing Michigan’s economy.
Nine proposals were received. A joint evaluation committee was appointed to review the proposals. McCann
Erickson USA, Inc. scored the highest among all of the proposals and the business marketing and advertising
services campaign was awarded to that agency. Te Pure Michigan brand also has been expanded to other state
departments through the DNR Recreational Passport and promotional video for the Secretary of State. Other
areas for expansion are under development.
Te www.MichiganAdvantage.org website was re-launched to re?ect the Pure Michigan brand and is
continually being updated as new programs and services are added or modi?ed. One new feature is the Pure
Michigan Business Connect website, a new s8 billion public-private initiative that strengthens Michigan’s
economic gardening philosophy through an alliance of the MEDC, Michigan companies, and other Michigan
organizations. Pure Michigan Business Connect matches people with resources, business support services, and
additional publiciprivate support. A marketing toolkit has been added that includes a number of easy-to-access
resources, including use of the Pure Michigan logo.
Along with advertising, the business marketing program funds events and trade shows in targeted industries
in which Michigan has unique strengths. Tese complement the MEDC’s business attraction and retention
e?orts. Some of the key shows and events the MEDC participated in during ?scal year zo11 included:
• North American International Auto Show (NAIAS): “Smarter Living in Michigan,” a ¸,ooo-square-
foot town square display dedicated to the state’s burgeoning alternative energy industry and innovative
companies, and featured ways in which alternative energy technologies are reinventing our lives.
Year-end Report to the Legislature / FY 2011 / 62
MEDC FY 2011
• CAR Management Brie?ng Seminars: largest management conference in North American automotive
industry
• 2010 World Stem Cell Summit: unites the stem cell universe of researchers, ReGEN industry leaders,
funders, medical philanthropies, policy-makers, advocates, educators and regulators to chart the future of
regenerative medicine
• 2010 MichBio Expo and Conference: largest gathering of bioscience professionals in the state where
representatives discuss current issues facing the industry, learn about the latest technologies, and interact
with vendors providing services to the industry
• Eighth Annual MidAmerica Healthcare Venture Forum: MidAmerica Healthcare Investors Network and
International Business Forum joined forces to unite venture capitalists from around the nation to facilitate
investment opportunities in promising healthcare companies from the MidAmerica region
• ACE II Annual Collaboration for Entrepreneurship: Great Lakes region entrepreneurs gather to network,
learn, and connect
• 2011 International Conference on Thermoelectrics: annual conference that brings together International
experts in the ?eld of thermoelectricity, drawing several hundred scientists and engineers from Asia, Europe
and the United States
VISITS TO WWW.MICHIGANADVANTAGE.ORG
FY2011 FY2010 FY2009
October ¸6,¡¸o 1¸¸,¸¡z ¡¸,,¸z
November 6z,8¸, 88,;6; ¡6,6z¸
December ¸6,o¸o 6z,o;¸ ¡o,8oz
January 6¡,z,; 68,1o¸ ¸1,6¡¸
February ¸¸,¸o6 ¸¸,1z, ¸¡,86,
March 6,,,;, 8¸,8¸o 1oo,o,¸
April 6¡,1,¸ 1¡o,¸¡¡ ,8,¡¸z
May 8¸,o¸¡ 18¸,8zo ,¡,¡8,
June ,¸,¡6; ;1,;o, ;6,¸¸¡
July ,o,66z ¸6,¡o¡ 6;,o16
August 1o6,1¡o ¸¡,o,¡ 6¡,¡;6
September 11¸,888 ¸¸,6;¸ 1z,,818
Total 916,507 1,053,292 870,771
Te ?scal year 2011 total website visits to www.MichiganAdvantage.org represents a 14.9
percent decrease over ?scal year 2010 visits; however, the last four months of ?scal year
2011 represents a 71.3 percent increase over the last four months of ?scal year 2010.
Fiscal year 2011 exceeded ?scal year 2009 website visits by approximately 5.2 percent.
doc_539392884.pdf
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Year-end Report to the Legislature / FY 2011 / 2
MEDC FY 2011
21ST CENTURY JOBS FUND INITIATIVE
Te z1st Century Jobs Fund was created in zoo¸ and implemented in zoo6 to reshape and diversify Michigan’s
economy by sparking new investments to rapidly companies and jobs. Michigan’s economy is increasingly being
driven by young, entrepreneurial businesses. Tis new con?guration means the rebirth of industry in smarter,
faster, and leaner clusters of innovative manufacturers and service providers. Te z1st Century Jobs Fund now
has four primary areas of focus:
Development and Commercialization of Competitive Edge Technologies
First, to encourage the development and commercialization of competitive-edge technologies in the following
industry sectors:
• Life sciences • Advanced automotive, manufacturing and materials
• Alternative energy • Agricultural processing technology
• Information technology • Other innovative technology as determined by the MSF Board
And, advanced computing and electronic device technology, design, engineering, testing, diagnostics, or
product research and development as it relates to any of the competitive-edge technologies. Included in
the objective to commercialize competitive edge technologies and launch new ventures, are the critical
entrepreneurial support services, business incubators, and seed funds comprising the ecosystem in which these
ventures grow and thrive.
Increased Equity Investment
Te second focus of the fund is to increase capital investment activity in Michigan. Te z1st Century Investment
Fund is designed to attract and grow venture capital, private equity and mezzanine ?nancing in Michigan and is
structured as a state “fund-of-funds” program.
Increased Commercial Lending
Tird, the z1st Century Jobs Fund increases commercial lending activity in Michigan. To stimulate additional
lending by ?nancial institutions across the state, the z1st Century Jobs Fund has the ability to create commercial
loan enhancement programs. As part of that goal, the Capital Access Program (c»v) was reinstituted to
stimulate lending to small businesses in the state.
Industry Clusters
Te fourth area of focus is on developing new industry clusters in Michigan. With clear competitive advantages,
Michigan is poised to translate leading manufacturing and supply chain expertise, coupled with competitive
edge technologies, to launch and diversify into new vertical markets.
Te Michigan Economic Development Corporation (rvoc), in partnership with its industry partners,
local economic development professionals, business acceleration service providers, university researchers
and entrepreneurs statewide, has been seeking high-tech start-ups, expanding the risk capital market and
nurturing company growth through creation of a multi-faceted entrepreneurial ecosystem, thereby ensuring the
movement of promising technologies from the laboratory to the marketplace.
Te z1st Century Jobs Fund, and its predecessor programs, the Michigan Life Sciences Corridor and
Technology Tri-Corridor, have played an integral role in Michigan’s vastly expanded clean and renewable energy
manufacturing operations, and is growing our life sciences, advanced manufacturing, and homeland security
and defense industries. Te Michigan Strategic Fund Act was amended in April zo11 to allow information
technology ?rms, agricultural processing, and other innovative technology as determined by the MSF Board to
be eligible for assistance as competitive edge technology enterprises under z1st century investment programs.
Tis expansion will help the agriculture community create jobs in rural areas and make the fund available to
more technology industries.
Initially the z1st Century Jobs Fund initiative was primarily focused on long-term goals with a mission to
create a fertile climate for entrepreneurship and diversi?cation of Michigan’s economy. It has evolved to include
programs that provide short-term stimulus for companies needing immediate access to capital to diversify and
grow their business, resulting in more jobs and investment for Michigan.
Year-end Report to the Legislature / FY 2011 / 3
MEDC FY 2011
CENTERS OF ENERGY EXCELLENCE PROGRAM
Te Centers of Energy Excellence (covv) program began in zoo8 to promote the development, acceleration
and sustainability of energy excellence sectors in Michigan. COEE monies match federal funds in the state’s
four targeted clean energy sectors: advanced energy storage, solar energy manufacturing, wind energy
manufacturing, and bioenergy. By collaborating with universities and national laboratories, the COEE program
helps companies create jobs and develop manufacturing supply chains in Michigan. Te Michigan Strategic
Fund (rsr) awarded s¡¸ million to six companies in the ?rst round of the COEE program and sz1 million to
?ve companies in the second round. Te MSF Board authorized an additional s, million from the z1st Century
Jobs Fund to the COEE program for ?scal year zo11 awards. Te following projects were recommended for
funding:
COEE AWARDS
Fiscal Year 2011 (10/01/2010–09/30/2011)
Company name Project description Award amount
Dow Corning Corporation Dow Corning, a cooperative venture with Hemlock
Semiconductor and in collaboration with Oak Ridge National
Lab (ORNL), will establish the Solar Valley Research Enterprise
(SVRE) in the Midland area. Te center will coordinate
a regional cluster of private sector companies, academic
institutions and government labs to speed innovation and
commercialization in the photovoltaic value chain.
s6,ooo,ooo
Grid Logic Incorporated Metamora-based Grid Logic will collaborate with ORNL
to develop, test, certify and manufacture a fault current
limiter that shores up the power supply in the event of a
major disruption to the energy grid. Michigan Technological
University, Florida State University, Columbia University,
and North Carolina State University will assist with research
addressing fault current limiter-equipped networks compared
to conventionally protected networks. Te company expects to
create 200 direct jobs at its facility within ?ve years.
s¸,ooo,ooo
Total $9,000,000
Year-end Report to the Legislature / FY 2011 / 4
MEDC FY 2011
21ST CENTURY INVESTMENT FUND PROGRAM
Te z1st Century Investment Fund (z1st cir) program is essential to Michigan’s ability to compete both
nationally and internationally for new business and investments. Tis fund encourages the growth of emerging
Michigan companies, diversi?es the state’s economy by creating and retaining knowledge-based jobs, and grows
a community of investors to create a long-term, sustainable capital ecosystem within Michigan. Credit Suisse
Bank, a fund management industry leader, manages z1st CIF. Credit Suisse brings expertise in the selection of
venture capital, private equity, and mezzanine funds to invest in Michigan companies creating jobs.
Since zoo6, s1o, million has been committed to 1¸ funds and one company. As of September zo11, the
investment fund managers have invested s¸;.8 million in zo Michigan-based portfolio companies.
Fiscal year 2011 Michigan investments include:
Intervention Insights, a Grand Rapids-based company, believes that a personal approach to therapy has the
potential to increase survival time, improve a patient’s quality of life, and o?er treatments that increase the
chances of response. Its service uses dynamic molecular pro?ling techniques to provide physicians with patient-
speci?c information to help with their therapeutic intervention decisions. Intervention Insights is helping
to continue the promise of personalized medicine by focusing e?orts on cancer treatments. Accumulative
knowledge of the human genome along with enhanced molecular biology technologies presents a historical
opportunity to make advances that can directly bene?t cancer patients.
ArborMetrix, an Ann Arbor-based company, helps both hospitals and insurers respond to increasing market
pressures to optimize their e?ciency. It also helps them meet new challenges in the wake of health care reform,
including accountable care organizations, bundled payments, and new models for value-based purchasing.
ArborMetrix provides scienti?cally robust, state-of-the-art tools for tracking quality and cost-e?ciency in every
major clinical specialty, as well as practical solutions for helping hospitals improve.
CytoPherx, Inc., founded in July zoo; and headquartered in Ann Arbor, is a venture-backed, clinical stage
medical device company addressing in?ammation-based diseases and conditions with a proprietary selective
cytopheresis system. Te company’s products are custom, patent-protected con?gurations of commercially
available hollow ?ber dialysis ?lters that are used in a proprietary manner to sequester and deactivate
leukocytes in the patient’s blood system. CytoPherx is initially focused on acute renal failure (»vr).
Previous Michigan investments include:
Accord Biomaterials, Ann Arbor Kabongo, Ann Arbor
Accuri Cytometers, Ann Arbor Life Magnetics, Ann Arbor
Arbor Photonics, Ann ArboriSan Jose, CA Microposite, Auburn Hills
Delphinus Medical Technologies, Detroit Mobius Microsystems, DetroitiSunnyvale, CA
Eliason Corporation, Portage NanoBio, Ann Arbor
Esperion Terapeutics, Ann Arbor Outside Hub, South?eld
HandyLab, Ann Arbor Tissue Regeneration Systems, Ann Arbor
Histosonics, Inc., Ann Arbor Unitask, Inc., Bloom?eld Hills
Incept Biosystems, Ann Arbor
VENTURE CAPITAL INVESTED
Fiscal Year 2011 (10/01/2010–09/30/2011)
Venture capital $ invested in Michigan s;¡,ooo,ooo
Number of venture capital investments in Michigan ¸1
Venture capital $ investments in Midwest s1,6¸¸,ooo,ooo
Number of venture capital investments in Midwest z8;
Michigan investments as a percent of Midwest ¡.¸oº
Year-end Report to the Legislature / FY 2011 / 5
MEDC FY 2011
MICHIGAN SUPPLIER DIVERSIFICATION FUND
AND MICHIGAN BUSINESS GROWTH FUND
Te Michigan Supplier Diversi?cation Fund (rsor) program operates two loan enhancement programs designed
to help traditional manufacturers—especially auto manufacturers—transition and diversify into growing markets
such as alternative energy. Te ?rst loan enhancement program, the Michigan Loan Participation Program
(rsor-rivv), o?sets a borrower’s cash ?ow de?ciency by purchasing a portion of a lender’s credit facility and
o?ers a grace period on the state’s portion. A second program, the Michigan Collateral Support Program (rsor-
rcsv), balances a borrower’s collateral shortfall by depositing cash collateral into a lending institution to insure
against potential losses. Te Michigan Strategic Fund (MSF) Board initially approved funding for MSDF totaling
s1¸.¸ million. In zoo,, strong demand absorbed the ?rst round of funds within the ?rst few months of operation.
Consequently, the MSF Board approved an additional s1¸ million in January zo1o.
Michigan is the ?rst state that received federal funds through the State Small Business Credit Initiative
(ssnci), part of the Small Business Jobs Act signed into law in September zo1o, and was awarded approximately
s;,.1 million to back small business loans. Te goal of the federal program is to help small businesses obtain
loans of at least s1o for every one dollar the state provides in support. In May zo11, the MSF Board approved
the SSBCI program, which is essentially a federal version of the Michigan Supplier Diversi?cation Fund, named
the Michigan Business Growth Fund (rnor). Te board also approved allocation of the SSBCI funds for the
program. Te MBGF is designed to be ?exible and allow a majority of the funds provided by the SSBCI to adjust
as the banking environment in Michigan changes. Te fund was established to operate the Collateral Support
Program (rnor-csv) and Loan Participation Program (rnor-ivv).
MSDF AND MBGF LOANS
Fiscal Year 2011 (10/01/2010–09/30/2011)
Company County Type Total loan MSF support
MSDF-MCSP
Be Cool, Inc. Bay MSDF-MCSP s¸oo,ooo szoo,ooo
Be Cool, Inc. Bay MSDF-MCSP s¡oo,ooo s1,¸,ooo
Kirtland Products Charlevoix MSDF-MCSP s¸,8oo,ooo s1,¡8¡,1¸z
Michigan Pipe and Valve—Lansing, Inc. Eaton MSDF-MCSP sz,;¸o,ooo s¸oo,ooo
Ryan & Kovich Properties, LLC Genesee MSDF-MCSP s¡,o,ooo s1¸o,ooo
Launch Support SpecialistsiAutomation
Movers International, Inc.
Genesee MSDF-MCSP s1,;¸o,ooo s¸¸o,ooo
Michigan Pipe and Valve—Flint Genesee MSDF-MCSP sz,ooo,ooo s¡oo,ooo
Michigan Pipe and Valve—Traverse City Grand Traverse MSDF-MCSP s1,ooo,ooo s¸z¡,¸¸o
Microline Technologies Grand Traverse MSDF-MCSP s1,ooo,ooo s¡,o,ooo
Tellurex Grand Traverse MSDF-MCSP s1,ooo,ooo s¡,o,ooo
Tran Tek Automation Grand Traverse MSDF-MCSP s1,¸oo,ooo s¸oo,ooo
S S & SiMantissa Inc. Ingham MSDF-MCSP s¡;6,ooo sz¸¸,z¡o
Sponseller Electric Isabella MSDF-MCSP s¸¸o,ooo sz6o,ooo
Full Spectrum Jackson MSDF-MCSP sz,¸¸z,ooo s1,z¸o,ooo
Firstronic, LLC Kent MSDF-MCSP s;¸o,ooo s¸oo,ooo
LDM LLC UMP Macomb MSDF-MCSP s8¸o,ooo szz;,¸oo
Silver Creek Manufacturing Muskegon MSDF-MCSP s1,z¸o,ooo s61z,¸oo
Year-end Report to the Legislature / FY 2011 / 6
MEDC FY 2011
MSDF AND MBGF LOANS continued
Fiscal Year 2011 (10/01/2010–09/30/2011)
Company County Type Total loan MSF support
W.M. Tube & Wire Form Muskegon MSDF-MCSP s6¸,ooo s¸1,8¸o
Brasco Oakland MSDF-MCSP s1,8oo,ooo s¸¸,,ooo
Paramount Precision Oakland MSDF-MCSP sz,6¡¸,ooo s1,ooo,ooo
ITB Packaging Ottawa MSDF-MCSP s6zo,ooo s¸o¸,8oo
Reeves Plastics, LLC Ottawa MSDF-MCSP s¡oo,ooo s1,,,ooo
Mistequay Saginaw MSDF-MCSP s¸,¸o¸,¡o6 s¡,,,ooo
Derona-Shar, LLC Wayne MSDF-MCSP s¡¸o,ooo s18o,¸oo
Ernest Acquisitions Wayne MSDF-MCSP s1,¸oo,ooo szz¡,ooo
M & L Industrial Properties, LLC Wayne MSDF-MCSP s¸zz,ooo sz¸¸,ooo
RBL ProductsiRBL Plastics Wayne MSDF-MCSP s¸¸o,ooo s1z¸,ooo
Celtic Properties, LLC Wayne MSDF-MCSP sz¸o,ooo s1zz,¸oo
Total MSDF-MCSP $34,523,406 $11,246,392
MSDF-MLP
Vantage Plastics Arenac MSDF-MLPP s¡o6,ooo s1,8,,¡o
JA Foodservice Berrien MSDF-MLPP s6oo,ooo s1z¡,ooo
Maverick Jackson MSDF-MLPP s8oo,ooo s¸,z,ooo
Kalkaska Screw Products Kalkaska MSDF-MLPP s¡;z,ooo sz¸¸,¸z8
Breckenridge Capital, LLC Oakland MSDF-MLPP s¸¸o,ooo s1;1,¸oo
Scienti?c Brake Saginaw MSDF-MLPP s1,ooo,ooo s¡,o,ooo
Scienti?c Brake Saginaw MSDF-MLPP s1,z¸o,ooo s¸oo,ooo
Mol-Son, LLC Van Buren MSDF-MLPP s,,¸oo,ooo sz,¸oo,ooo
Petter Investments Van Buren MSDF-MLPP s8oo,ooo s¸,z,ooo
Total MSDF-MLPP $15,178,000 $5,003,968
MBGF-CSP
Te SpaBath Company, LLC Grand Traverse MBGF-CSP s;z¸,ooo s¸¸¸,z¸o
James Burg Trucking Company Macomb MBGF-CSP s¡,,z¸,ooo s1,zoo,ooo
Total MBGF-CSP $5,650,000 $1,555,250
MBGF-LPP
Manistique Papers, Inc. Schoolcraft MBGF-LPP s¡,1¡z,88, sz,ooo,ooo
Manistique Papers, Inc. Schoolcraft MBGF-LPP s1,¸¸¸,¸¡8 s¸oo,ooo
PEP Stations, LLC Wayne MBGF-LPP s;¸o,ooo s¸;¡,z¸o
Total MBGF-LPP $6,226,237 $2,874,250
Year-end Report to the Legislature / FY 2011 / 7
MEDC FY 2011
SMALL BUSINESS CAPITAL ACCESS PROGRAM LOANS
Te Small Business Capital Access Program (snc»v) is a loan enhancement program that helps small businesses
to acquire ?nancing through lending institutions that might otherwise be unavailable. SBCAP operates on a
pooled reserve concept in which a reserve account at each participating bank protects each enrolled loan under
the program. Te reserve account is funded through one-time premium charges paid in equal parts by the
borrower and the lender, plus the sum of those charges will be matched by the Michigan Strategic Fund. Tis
reserve, which grows with each subsequent loan, will o?set any future losses incurred by the lender. Te success
of Michigan’s SBCAP program, which was the ?rst of its kind, inspired other states to copy the program.
SBCAP LOANS
Fiscal Year 2011 (10/01/2010–09/30/2011)
Month Loans enrolled
Total amount of
loans enrolled
MSF reserve
contribution
Projected
new jobs
Projected
retained jobs
October 11 s6z,,6¸o sz¡,o,8 8 ;z
November 11 s¸1¡,6,¡ s1o,;88 1o ¸8
December z6 s1,o,¸,;¸8 s¸6,zz¸ ¡1 111
January ¸¸ s¡,1oz,,o, s1¸¸,z¸; 8; ¡zz
February ¸ sz,,,z;1 s,,o¸o ¸ ;
March z; s1,86,,6¸¸ s¸,,6o, ¸, ¡1;
April ¡1 sz,¸8¸,¸z; s;,,¸;1 8; 18z
May z; s1,,6z,8zz s61,1;¸ 111 zo8
June 1¡ s;z8,61; szz,6o, ¸6 6¡
July z8 s1,6o,,o61 s¸1,¸¸8 z¸ 11¸
August ¸ s1¸o,ooo s6,1¸o ¸ 8
September o so so o o
Total 246 $15,347,942 $495,870 452 1,642
Year-end Report to the Legislature / FY 2011 / 8
MEDC FY 2011
SBCAP LOAN RECIPIENTS
Fiscal Year 2011 (10/01/2010–09/30/2011)
Company name City County Industry
Gnegy Dental Associates Allegan Allegan o?ces and clinics of dentists
Quantum Construction Company Douglas Allegan management services
Zing EatiDrink Holdings, LLC Douglas Allegan eating places
Te White House, LLC Fennville Allegan drinking places (alcoholic beverages)
1st Choice Trucking Hamilton Allegan trucking, except local
Alle Rue No 133, Inc. Saugatuck Allegan piece goods, notions and other dry goods
David Langley and June Springs Saugatuck Allegan hotels and motels
Ray Pag Saugatuck Allegan eating places
Osbaldo F. Henderson and Holly L. Henderson Shelbyville Allegan nondurable goods
Gun Lake Repair and Detail, Inc. Wayland Allegan general automotive repair shops
Endoscopy Repair Specialists Inc. Hastings Barry repair shops and related services
JK Rose Construction, LLC Hastings Barry general contractors-single family houses
Michael I Hallifax dba Hallifax Services Hastings Barry lawn and garden services
Rivergate Family Campground, LLC Hastings Barry recreational vehicle parks and campsites
Action Leasing, LLC Auburn Bay
operators of residential mobile home
sites
Ashly Bailey Family Dentistry, PLC Bay City Bay o?ces and clinics of dentists
Marc Coleman dba Shields Fire Protection Bay City Bay welding repair
Wieland Sales, Inc. Bay City Bay automotive dealers
Peter Miller dba Buzz n Blades Turf Service Essexville Bay lawn services
Aleksandr & Dreychan Lake Ann Benzie local trucking without storage
J.B.M. Enterprises Benton Harbor Berrien general automotive repair shops
Kaz Enterprises Benton Harbor Berrien drinking places (alcoholic beverages)
Rudolf D. Ronto and Wendy L. Ronto Berrien Center Berrien o?ces and clinics of dentists
Wesley Ryan Kinsey and Brooke Roberts Coldwater Branch barber shops
William and DeAnne Hawley Coldwater Branch ornamental shrub and tree services
Macomber Welding & Fabricating, Inc. Dutton Caledonia metalworking machinery
Lorin M. Granger Battle Creek Calhoun insurance agents, brokers and service
Tennis Connection, Inc. Battle Creek Calhoun professional sports clubs and promoters
B & L Party Coolers, LLC Homer Calhoun nondurable goods
Frank T. BaueriAmerican Stall Rentals Marshall Calhoun equipment rental and leasing
American Stall Rentals, LLC Tekonsha Calhoun equipment rental and leasing
Jody She?er Dowagiac Cass video tape rental
Extraordinary Dental Practice, PLC East Jordan Charlevoix o?ces and clinics of dentists
Up North Home Inspector, LLC East Jordan Charlevoix
plumbing, heating equipment and
supplies (hydronics)
SMALL BUSINESS CAPITAL ACCESS PROGRAM LOANS
Year-end Report to the Legislature / FY 2011 / 9
MEDC FY 2011
SBCAP LOAN RECIPIENTS continued
Fiscal Year 2011 (10/01/2010–09/30/2011)
Company name City County Industry
Johnson Sport Shop
Drummond
Island
Chippewa sporting goods stores and bicycle shops
R & R Excavation Services, Inc. Pickford Chippewa excavation work
M Family Salon, Inc. Petoskey Emmet beauty shops
Jack Lands Davison Genesee miscellaneous retail stores
Sabo Properties, LLC and Bobby J. Grossi Flint Genesee o?ces and clinics of dentists
Crist Family Storage Lennon Genesee beef cattle, except feedlots
Lake Shore AFC Properties LLC Grawn Grand Traverse residential care
5 Star Directional Drilling Services, Inc. Kingsley Grand Traverse oil and gas wells directional drilling
GoLo, LLC Traverse City Grand Traverse commercial printing
In Home Health Care Services, Inc. Traverse City Grand Traverse home health care services
Mission Tool & Die Co. Traverse City Grand Traverse
special dies and tools, die sets, jibs and
?xtures and industrial molds
Safety Net, Inc. Traverse City Grand Traverse computer related services
Kelly Restaurants LLC Williamsburg Grand Traverse eating places
T.J. Campbell and Company Williamsburg Grand Traverse home furnishings
Amando A. Garcia dba Amando’s Service Alma Gratiot automotive repair shops
J&J Hirschman, LLCiHirsch Holdings, LLC Alma Gratiot metalworking machinery
Kids World News Too, Inc. Alma Gratiot
newspaper publishing, or publishing and
printing
Matthew and Mary Redman Alma Gratiot dairy farms
Phi L Le and Chi Jarquin-Le Alma Gratiot hotels and motels
Willow Creek Farms Trucking Ashley Gratiot local trucking without storage
Bruce Waldron Excavating, Inc. Elwell Gratiot special trade contractors
Chris & Maria Buerge Ithaca Gratiot eating places
Edward L. TayloriTaylor Services Ithaca Gratiot operators of nonresidential buildings
Ithaca Chevrolet Ithaca Gratiot motor vehicle dealers (new and used)
Victor Flegel and Tina FlegeliPencil Craft, LLC Ithaca Gratiot wood products
Brian S. WoodiDiscount Dumpster St. Louis Gratiot local trucking without storage
Richard L. Hayes II Sumner Gratiot local trucking without storage
Keith I and Dollie Vincent Camden Hillsdale corn
Hillsdale Aero, Inc. Hillsdale Hillsdale
airports, ?ying ?elds, and airport
terminal services
Lyle E. Gordon Hillsdale Hillsdale
water, sewer, pipeline, and
communications and power lines
Te Victorian Rose, LLC Hillsdale Hillsdale ?orists
Timothy J. Baker Hillsdale Hillsdale o?ces and clinics of optometrists
Terry Alan Ladd Jonesville Hillsdale
arrangement of transportation of freight
and cargo
Cindy L. Paletis and Matthew A. Paletis Litch?eld Hillsdale retail bakeries
Year-end Report to the Legislature / FY 2011 / 10
MEDC FY 2011
SBCAP LOAN RECIPIENTS continued
Fiscal Year 2011 (10/01/2010–09/30/2011)
Company name City County Industry
John Keith Wireman Litch?eld Hillsdale cash grains
S.D. Powers Trucking Litch?eld Hillsdale trucking, except local
Christopher Allen Bad Axe Huron sporting goods stores and bicycle shops
Biophotonic Solutions East Lansing Ingham optical instruments and lenses
Dallas H. and Katherine Henney Leslie Ingham ?eld crops, except cash grains
Charles R. Barker, Jr. D.O. Family Services Belding Ionia o?ces and clinics of doctors of medicine
West Michigan Fab Corporation Belding Ionia fabricated metal products
Snyder Asphalt, Inc. Saranac Ionia highway and street construction
M.D. Refrigeration, LLC Lake Isabella Isabella plumbing, heating and air conditioning
Ryan C. GreeniGreen Insurance Agency Mt. Pleasant Isabella insurance agents, brokers and service
S & K Food Pride, Inc. Rosebush Isabella groceries, general line
J Hill Services, LLC Grass Lake Jackson
arrangement of transportation of freight
and cargo
Choice Auto Sales of Jackson Jackson Jackson motor vehicle dealers (used only)
Bond Tool & Engineering, Inc. Kalamazoo Kalamazoo industrial organic chemicals
Case Management of Michigan Kalamazoo Kalamazoo o?ces and clinics of doctors of medicine
Doug Dodson Kalamazoo Kalamazoo operators of nonresidential buildings
Harrison Packing Co., Inc. Kalamazoo Kalamazoo
canned fruits, vegetables, preserves, jams
and jellies
Kalamazoo PS, LLC Kalamazoo Kalamazoo eating places
Lucky 13 Moving, LLC Kalamazoo Kalamazoo local trucking with storage
Redline Manufacturing, Inc. Kalamazoo Kalamazoo
industrial and commercial machinery
and equipment
Steven K. Ray Kalamazoo Kalamazoo o?ces and clinics of dentists
Te Victorian Bakery Kalamazoo Kalamazoo bread and other bakery products
Western Diversi?ed Plastics, LLC Kalamazoo Kalamazoo
precision plastic components and electro
mechanical components
RJ Saline, Inc. Portage Kalamazoo insurance agents, brokers and service
Shoreline Chiropractic Wyoming Kalamazoo o?ces and clinics of chiropractors
Stuart Orr Ada Kent physical ?tness facilities
Caledonia Tree Service, Inc. Alto Kent lawn and garden services
Landscape Impressions Design & Garden Caledonia Kent lawn and garden services
Vertical Paradise Farms Caledonia Kent food crops grown under cover
Advantage Mechanical Refrigeration, Inc. Comstock Park Kent plumbing, heating and air conditioning
Advanced Concepts Compounding Grand Rapids Kent local trucking without storage
Alpine Fitness, LLC Grand Rapids Kent physical ?tness facilities
Boss Electro Static, Inc. Grand Rapids Kent coating, engraving, and allied services
Canal Street Brewing Co. Grand Rapids Kent wines, brandy, and brandy spirits
Chaser Apparel Grand Rapids Kent apparel
Core Technologies, LLC Grand Rapids Kent computer related services
Year-end Report to the Legislature / FY 2011 / 11
MEDC FY 2011
SBCAP LOAN RECIPIENTS continued
Fiscal Year 2011 (10/01/2010–09/30/2011)
Company name City County Industry
Grand Rapids Metaltek Grand Rapids Kent repair shops and related services
Hee Ja Oh dba Plain?eld Party Store Grand Rapids Kent liquor stores
J. Russo Enterprises Grand Rapids Kent miscellaneous food stores
JTR Transportation Grand Rapids Kent local trucking without storage
Point Transport, LLC Grand Rapids Kent trucking, except local
Queen Bee Quilt Shoppe, LLC Grand Rapids Kent apparel and accessories
Saul Munoz, Roberto Munoz and Maria Pere Grand Rapids Kent eating places
Superior Press and Automation Grand Rapids Kent
oil and gas ?eld machinery and
equipment
Treads & Sleds dba Grand Rapids Power Co. Grand Rapids Kent automotive dealers
Water Speci?cations Inc. Grand Rapids Kent water supply
Watersnap, LLC Grand Rapids Kent physical ?tness facilities
No?singer, LLC Grandville Kent insurance agents, brokers and service
Gymco, Inc. Kentwood Kent physical ?tness facilities
Preferred Construction Group LLC Kentwood Kent management services
Rockford Operation Kentwood Kent child day care services
Selvedin Kmetas Kentwood Kent trucking, except local
Studio 2 Digital Dental Design, Inc. Kentwood Kent dental laboratories
Brainard Enterprises, Inc. Rockford Kent special trade contractors
G R Twin Properties Rockford Kent eating places
Kelley’s Animal Clinic, P.C. Walker Kent veterinary services for animal specialties
Electric by Lakestate, Inc. Wyoming Kent electrical work
Gerald Rose Wyoming Kent professional equipment and supplies
Ross and Sharon Tuttle Wyoming Kent local trucking without storage
Shoreline Chiropractic Wyoming Kent o?ces and clinics of chiropractors
White Glove Cleaning and Maintenance Wyoming Kent
building cleaning and maintenance
services
David R. Smith Baldwin Lake general contractors-single family houses
Mathew J. Manier Branch Lake repair shops and related services
Northern Destiny Investments Luther Lake grocery stores
Northern Michigan Temporary Services, Inc. Luther Lake special trade contractors
Triple D Orchards Empire Leelanau crop preparation services for market
SVH Employment, LLC Hudsonville Lenawee coin-operated laundries and dry cleaning
Chakradhar C. Reddy
Clinton
Township
Macomb o?ces and clinics of doctors of medicine
Jamie Yang dba Village Cleaners
Clinton
Township
Macomb coin-operated laundries and dry cleaning
Dynamic Polymer Solutions Fraser Macomb sheet metalwork
Robert J. Inc. Macomb Macomb motor vehicle dealers (used only)
Contract Milling Services, Inc. Roseville Macomb screw machine products
Year-end Report to the Legislature / FY 2011 / 12
MEDC FY 2011
SBCAP LOAN RECIPIENTS continued
Fiscal Year 2011 (10/01/2010–09/30/2011)
Company name City County Industry
J & J Spring Enterprises, LLC
Shelby
Township
Macomb bolts, nuts, screws, rivets and washers
Pioneer Plastics Inc.
Shelby
Township
Macomb plastics products
Service 1st Maintenance, LLC
Shelby
Township
Macomb
building cleaning and maintenance
services
Drive Enterprise, LLC St. Clair Shores Macomb excavation work
24-7 Battery Systems, LLC Warren Macomb auto and home supply stores
Rocket Enterprise, Inc. Warren Macomb nondurable goods
Maximum Management, Inc. Washington Macomb eating places
Satnaamjc Inc. & Satnaam, LLC Wellston Manistee hotels and motels
Armato Electric, Inc. Big Rapids Mecosta general contractors-residential buildings
H & H Wildlife Design Fur Dressing, Inc. Mecosta Mecosta
leather tanning and ?nishing i mens and
and boys clothing and accessories
RTG Transport, LLC Morley Mecosta local trucking without storage
Stephen L. & Becki J. Lente Rodney Mecosta o?ces and clinics of health practitioners
180 Designs, LLC Stanton Mecosta commercial art and graphic design
Dare Investigations, LLC Midland Midland
detective, guard and armored car
services
JA Ho?man Family, LLC Midland Midland eating places
Jack Pine Production, Inc. Midland Midland
motion picture and video tape
production
McB & MLB Properties Midland Midland operators of nonresidential buildings
Midland Sleep Central, LLC Midland Midland miscellaneous retail stores
Mid Michigan Logging Lake City Missaukee logging
Andrew Braman dba DNE Edmore Montcalm local trucking without storage
Mulholland Enterprises, LLC Greenville Montcalm business services
Tree Seasons Campground, Inc. Greenville Montcalm recreational vehicle parks and campsites
Brigham Funeral Chapel, PLC Six Lakes Montcalm funeral homes
Alan and Shannon Buskirt Stanton Montcalm trucking, except local
Circle B Acres Stanton Montcalm dairy farms
Git-R-Dun Trucking, LLC Stanton Montcalm local trucking without storage
Cory Pendrick & Katie Walbridge Muskegon Muskegon coin-operated laundries and dry cleaning
Fatboy’s Gallery of Tattoo Art, LLC Muskegon Muskegon miscellaneous personal services
Hartshorn Holdings, LLC Muskegon Muskegon eating places
MTA LandiMuskegon Tire
North
Muskegon
Muskegon motor vehicle parts and accessories
Aesthetic Dentistry by DiPilla, PC Birmingham Oakland o?ces and clinics of dentists
Mills Pharmacy & Apothecary, LLC Birmingham Oakland drug stores and proprietary stores
Year-end Report to the Legislature / FY 2011 / 13
MEDC FY 2011
SBCAP LOAN RECIPIENTS continued
Fiscal Year 2011 (10/01/2010–09/30/2011)
Company name City County Industry
Roman Electrical Co. Clarkston Oakland electrical work
Springbrook Sub, LLC
Commerce
Township
Oakland variety stores
J&R Industries, Inc.
Farmington
Hills
Oakland home furnishings
Sneaker Station, Inc. Highland Oakland women’s accessory and specialty stores
Dolce Panetteria Foods, LLC Lake Orion Oakland bread and other bakery products
Outbound Technologies Incorporated New Hudson Oakland engineering services
Financial Future Management Novi Oakland loan brokers
Luma Resources Rochester Hills Oakland
heating equipment, except electric and
warm air furnaces
Marconi Brothers, LLC Rochester Hills Oakland eating places
Michael J. Golding South?eld Oakland legal services
AAL Enterprises, LLC Waterford Oakland coin-operated laundries and dry cleaning
AAA Underground, Inc.
West
Bloom?eld
Oakland water well drilling
Wroten & Associates, P.C. Wixom Oakland
accounting, auditing, and bookkeeping
services
Wild Bill’s ATVs, Inc. Mears Oceana coin-operated amuses devices
J & J Spring Enterprises, LLC Shelby Oceana bolts, nuts, screws, rivets and washers
Patricia J. Brown dba Pizza Factory Shelby Oceana eating places
Brian E. Rehkopf dba BBR Mobile Reed City Osceola special trade contractors
Rouse Transport, LLC Reed City Osceola transportation services
Big to Small Delivery Service Tustin Osceola trucking without storage
ADL Home Care Inc. Holland Ottawa residential care
Central Park Grocery, LLC–LOC Holland Ottawa grocery stores
Dykstra Drug Store Holland Ottawa drug stores and proprietary stores
Exinent, LLC Holland Ottawa business consulting services
Advanced CNC Machining, LLC Hudsonville Ottawa
industrial and commercial machinery
and equipmentimetal doors, sash,
frames, molding and trim
Bissell Painting Jenison Ottawa painting and paper hanging
KL Tools, LLC West Olive Ottawa automotive repair shops
Kathleen Haveman Zeeland Ottawa trucking, except local
Primera Plastics, Inc. Zeeland Ottawa
plastics materials, synthetic resins, and
nonvulcanizable elastomers
Jen’s Lens Photography, Inc. Merrill Saginaw photographic studios, portrait
James Gi?n Saginaw Saginaw trucking, except local
Karl J. Weyand III and Allison E. Weyand Saginaw Saginaw miscellaneous personal services
Midwest Marketing, Inc. Saginaw Saginaw hardware
Year-end Report to the Legislature / FY 2011 / 14
MEDC FY 2011
SBCAP LOAN RECIPIENTS continued
Fiscal Year 2011 (10/01/2010–09/30/2011)
Company name City County Industry
Scott Krugielka dba Rightway Remediation Saginaw Saginaw special trade contractors
L & S Tree Moving Mendon St. Joseph
forest nurseries and gathering of forest
products
Bangor Land Holding, LLC Bangor Van Buren residential care
Beacon Specialized Living Services, Inc. Bangor Van Buren residential care
Peter W. Fritz and Joshua Fritz Gobles Van Buren equipment rental and leasing
Preferred Providers, Inc. Ann Arbor Washtenaw home health care services
Te Lodge of Quincy Real Estate Company Ann Arbor Washtenaw intermediate care facilities
Animal Regenerative Care Center PLLC Chelsea Washtenaw testing laboratories
Anthony P. and Vivian R. Frudakis Saline Washtenaw corn
Fifth Avenue Liquor Spot, Inc. Detroit Wayne grocery stores
Pony Enterprises, Inc. Detroit Wayne liquor stores
Andrea Shameti Livonia Wayne trucking, except local
Custom Designed Security, Inc. Livonia Wayne security systems services
Dawood Inc. dba Brass Mug Liquor Livonia Wayne grocery stores
Pizza Czars Livonia Wayne eating places
Center Street Wealth Strategies, LLC Northville Wayne investment advice
Sole Construction, Inc. Westland Wayne water well drilling
JSJJA Enterprises, Inc. Woodhaven Wayne eating places
Mahnke Machine Cadillac Wexford machine shop
Nelson Logging, Inc. Cadillac Wexford logging
Year-end Report to the Legislature / FY 2011 / 15
MEDC FY 2011
FOLLOW-ON FUND
To maximize the economic impact of the portfolio of investments the MEDC manages on behalf of dollars
distributed through historical and current programs, including but not limited to the z1st Century Jobs
Fund, Michigan Life Sciences Corridor, Michigan Technology Tri-Corridor, and Pre-Seed Funds (Portfolio
Companies), a s6 million Follow-On Fund was created in zoo, to ?ll a critical gap currently existing in the
marketplace.
Tese funds assist portfolio companies to move to a stage where commercial opportunities (e.g. licensing,
seed or equity funds) can be secured. Funds can support further scienti?c and technical development of an
idea as well as activity gauged towards improving an intellectual property position, market research, potential
licensees, joint ventures and venture ?nancing. Te fund is intended to bridge the gap between traditional
research grants, angel and pre-seed investments to commercial funding by supporting the very early stage of
turning research outputs into a commercial proposition.
FOLLOW-ON FUND LOANS
Fiscal Year 2011 (10/01/2010–09/30/2011)
Company name City County
Loan
amount Project highlights
Armune BioScience, Inc. Kalamazoo Kalamazoo s¸oo,ooo Armune BioScience was formed to develop and
commercialize high value, protein signature-
based diagnostic tests for prostate, lung and
breast cancers that will allow physicians and
patients to make better treatment decisions.
Tolera Terapeutics, Inc. Kalamazoo Kalamazoo s¸oo,ooo Tolera Terapeutics is developing novel
therapies and technologies, to o?er patients and
their doctors, targeted and safer solutions, for
immune modulation and related medical needs.
3D Biomatrix, Inc. Ann Arbor Washtenaw s¡1¸,ooo ¸D Biomatrix provides three dimensional (¸D)
cell culture plates and sca?olds (matrices).
Its ¸D cell culture solutions boost life
sciences research and drug discoveryitesting
applications by providing life-like results. Cells
grown on ¸D Biomatrix products have been
shown to retain a much higher complexity of
body response than traditional zD cell cultures.
Arbor Photonics, Inc. Ann Arbor Washtenaw s¸oo,ooo Arbor Photonics is developing highly reliable
?ber lasers that feature an unmatched
combination of beam quality and optical power.
Its proprietary ?ber platform technology
expands the limits of single-mode laser
performance to hundreds of watts of average
pulsed power and multi-kilowatts of continuous
wave optical power. Tese lasers can enable
dramatic improvements in throughput
and processing speed in microelectronics
manufacturing, solar cell processing and
industrial materials processing applications.
Year-end Report to the Legislature / FY 2011 / 16
MEDC FY 2011
FOLLOW-ON FUND LOANS continued
Fiscal Year 2011 (10/01/2010–09/30/2011)
Company name City County
Loan
amount Project highlights
Gema Diagnostics Ann Arbor Washtenaw sz¸o,ooo Gema Diagnostics is a venture-backed
molecular diagnostics company developing
applications to dramatically improve clinical
outcomes in in vitro fertilization (ivr). Gema
has designed an oocyte screening technique
as a diagnostic service which uses a genetic
“pregnancy signature” to identify the most
viable oocytes prior to fertilization.
Solidica, Inc. Ann Arbor Washtenaw s¸oo,ooo Solidica provides sensor network and
fabrication solutions to military, automotive,
aerospace, industrial, and consumer product
industries. Te company’s mission is to be the
world’s leading provider of next generation
ruggedized smart sensor networks linking
physical parameter monitoring to customers’
knowledge systems—delivering enhanced
product di?erentiation, improved safety and
control, visibility and pro?table outcomes.
Total $2,665,000
Year-end Report to the Legislature / FY 2011 / 17
MEDC FY 2011
SMALL BUSINESS INVESTMENT TAX CREDIT
Te Small Business Investment Tax Credit (sni:c) program allows a taxpayer that makes a quali?ed investment
after December ¸1, zo1o, and before January 1, zo1z, in a quali?ed business to claim a tax credit imposed by
the Income Tax Act equal to z¸ percent of the quali?ed investment made during the tax year, as described in
MCL zo6.z;8. Te SBITC is intended to incent angel investors to invest in Michigan-based innovative seed and
early-stage companies. Te bene?ts of this program are shared by the small businesses, investors, employees,
and the state’s economy. Michigan businesses can more readily obtain the capital needed to grow, and investors
are better able to manage the risk associated with investing in early stage businesses and novel technologies.
Te state bene?ts by the larger number of investments which support the growth of emerging businesses and
ultimately create jobs. In zo11, the Michigan Legislature shortened the timeframe in which to make quali?ed
investments under the program from January 1, zo1¸, to January 1, zo1z.
Since its inception, the program has generated the following aggregate results:
Registered Investment Groups: ¸8 (angel or venture capital groups that have registered with the Michigan
Strategic Fund in order to utilize the program)
Investors approved for tax credits: ¸¡
Quali?ed businesses that have received investments: 11
Total tax credits approved: s68o,6z¡
Total quali?ed investments: sz,6;z,¸o1
Additional leverage on quali?ed investments: s¸,zo¡,oo1
Leverage ratio: 8.6:1 (private investment to total tax credits)
Year-end Report to the Legislature / FY 2011 / 18
MEDC FY 2011
EARLY STAGE FUNDING AND
ENTREPRENEURIAL SUPPORT SERVICES
In April zo11, the Michigan Strategic Fund issued two Requests for Proposals (RFPs) for programs to aid
Michigan entrepreneurs in commercializing competitive edge technologies ?elds including alternative energy,
life sciences, homeland security and defense, advanced manufacturing and materials, agricultural processing,
information technology, and other innovative sectors.
Entrepreneurs: One RFP sought to enhance and sustain Michigan’s entrepreneurial ecosystem through
business acceleration services, business incubation, entrepreneurial talent development and early-stage business
counseling in competitive-edge technology sectors. Te MSF approved s1z million in funding for this initiative.
Early Stage: Te MSF also approved s1¸ million to fund a second RFP for an innovative Early Stage Seed
Capital Initiative. It solicited seed investment funds and non-pro?t entities that will provide capital to new
companies during the investigation and feasibility phases of innovation and technology development.
Forty-one applications were received and reviewed by 1, independent peer review experts. In July zo11, a total
of eight organizations received awards from the MSF (funding is for two to three years):
EARLY STAGE AND ENTREPRENEURIAL SUPPORT SERVICES AWARDS
Fiscal Year 2011 (10/01/2010–09/30/2011)
Organization City County Description
Award
amount
Great Lakes
Entrepreneurs Quest
(GLEQ)
Lansing Ingham Statewide annual business plan
competition that provides a network of
volunteer coaching, investor talent, and
entrepreneurial support programs for
early stage companies.
s1,o8o,ooo
(vso)
Biosciences Research
& Commercialization
Center (BRCC) of
Western Michigan
University
Kalamazoo Kalamazoo Statewide pre-seed fund that will invest in
life science start-ups.
s¸,8¸o,ooo
(vsr)
Michigan Small
Business & Technology
Development Center
(SBTDC)
Grand
Rapids
Kent Business Accelerator Fund, a fund
that can be accessed by participating
business accelerators statewide to provide
specialized business acceleration services
and resources regardless of their client’s
geography.
s¸,¸¸z,,¸;
(vso)
Ann Arbor Spark Ann Arbor Washtenaw Pre-Seed Capital Fund: A statewide co-
investment program in collaboration with
all Michigan SmartZones that makes
investments in pre-seed stage companies,
Accelerate Michigan Innovation
Competition, an annual business
competition that awards s1 million in
cash prizes to start-up and emerging
companies, and the Michigan Angel Fund,
a new fund that will invest in Michigan
start-up companies.
s,,1;o,ooo
(vsr)
s1,6¸o,ooo
(vso)
Year-end Report to the Legislature / FY 2011 / 19
MEDC FY 2011
EARLY STAGE AND ENTREPRENEURIAL SUPPORT SERVICES AWARDS continued
Fiscal Year 2011 (10/01/2010–09/30/2011)
Organization City County Description
Award
amount
Biotechnology Business
Consultants (BBC)
Ann Arbor Washtenaw Statewide support for Michigan
companies to secure funding through
federal Small Business Innovation
Research (SBIR) and Small Business
Technology Transfer (STTR) programs.
s1,¸;¸,ooo
(vso)
Michigan Venture
Capital Association
(MVCA)
Ann Arbor Washtenaw Entrepreneur-in-Residence and CEO
placement programs, to improve talent in
entrepreneurial companies, the Michigan
Venture Fellows program, to develop
talent for Michigan venture capital ?rms,
and the Angel Network Growth program,
to strengthen angel investment networks
across the state.
s¸,o68,8¡6
(vso)
Detroit Creative
Corridor Center
Detroit Wayne Creative Producers, a program that will
deliver targeted business acceleration
services to early and second stage
businesses in the digital and media
production ?elds.
s¸;¸,ooo
(vso)
Inforum Center for
Leadership
Detroiti
Grand
Rapids
Waynei
Kent
Implementation of two programs
focused on high-growth women
entrepreneurs: ACTiVATE, a technology
commercialization curriculum, and Astia,
a global network of mentors and investors.
s;18,1,;
(vso)
Total $25,000,000
ESF =Early stage fund
ESG = Entrepreneurial support grant
Year-end Report to the Legislature / FY 2011 / 20
MEDC FY 2011
BUSINESS INCUBATOR AWARDS
In September zo1o, the Michigan Legislature appropriated s1.¸ million to the business incubator program
through the Michigan Strategic Fund (rsr). Te enabling legislation (HB ¸88oizo1o PA 1,1) directs the MSF
Board to distribute the funds on a competitive basis to one business incubator program in each of the following
counties and cities: Houghton, Isabella, Kalamazoo, Kent, Macomb, Muskegon, Oakland and Washtenaw
counties, in a city with a population greater than ;¸o,ooo (Detroit) and in a city with a population in the zooo
census between 11,,ooo and 1zo,ooo and that experienced a population loss between 8.o percent and ,.o
percent between the 1,,o and zooo census (Lansing).
Te MSF Board approved the following 1o proposals to receive awards under the business incubator RFP,
contingent upon the execution of a contract with terms and conditions agreed to by the MSF and the awardee:
BUSINESS INCUBATOR AWARDS
Fiscal Year 2011 (10/01/2010–09/30/2011)
Incubator applicant Incubator City County
Award
amount
Michigan Tech
Enterprise Corporation
MTEC SmartZone Houghton Houghton s1oo,ooo
Lansing LDFA LansingiEast Lansing LDFAiSmartZone
Lansingi
East Lansing
Ingham s1oo,ooo
Central Michigan
University
CMUiResearch Corporation
Mount
Pleasant
Isabella s1oo,ooo
Kalamazoo SmartZone Southwest Michigan Innovation Center Kalamazoo Kalamazoo s1oo,ooo
Grand Valley State
University
West Michigan Science & Technology
Initiative (WMSTI)
Grand Rapids Kent s1oo,ooo
Oakland University Macomb OU Incubator
Sterling
Heights
Macomb sz¸o,ooo
Grand Valley State
University
Michigan Alternative and Renewable
Energy Center (MAREC)
Muskegon Muskegon $100,000
Automation Alley Automation Alley Troy Oakland sz¸o,ooo
Ann Arbor SPARK Spark East Incubator Ypsilanti Washtenaw s1oo,ooo
Detroit Creative
Corridor Center
DCCC Detroit Wayne s1oo,ooo
Total $1,300,000
Year-end Report to the Legislature / FY 2011 / 21
MEDC FY 2011
EMERGING TECHNOLOGIES FUND
Te Michigan Emerging Technologies Fund (v:r) is designed to expand funding opportunities for Michigan
technology based companies in the federal innovation research and development arena. Te Michigan
Small Business & Technology Development Center (ri-sn
c) in partnership with the Michigan EconomicDevelopment Corporation (rvoc), is dedicating up to s1.¡ million annually to match federal SBIRiSTTR°
funding opportunities for exceptional research and technical innovation generated in Michigan.
Te Michigan ETF will match z¸ percent of phase I SBIRiSTTR awards up to sz¸,ooo, and z¸ percent of
phase II SBIRiSTTR awards up to s1z¸,ooo. Te ETF awards will come in the form of grants and do not need
to be paid back, however, ETF award dollars must be used to help bring projects to commercialization in
Michigan.
Companies must leverage a third party match to be eligible for ETF awards. Before submitting an SBIRi
STTR proposal to the federal government, an applicant must ?rst secure a matching commitment from the
MI-SBTDC. Preference will be given to applicants who demonstrate signi?cant commercialization potential.
Te Michigan Legislature appropriated s1.¡ million through the Michigan Strategic Fund (MSF) to the
MI-SBTDC to be used for the SBIRiSTTR grant or loans matching program for ?scal year zo11. Te MSF Board
approved allocation of the s1.¡ million in January zo11. Te MSF approved a similar appropriation for ?scal
years zoo;, zoo8, zoo, and zo1o. Over s¡.¸ million of the funds have been tentatively committed to 81 projects
with the following breakdown:
Phase I awards ¡;
Phase II awards ¸¡
ETF funds disbursed s¡,¸;o,o;¡
ETF funds set aside sz¡¸,ooo
ETF funds available s;8¡,,z6
SBIRiSTTR leverage s¸z,¸;6,8¡;
Tird party leverage sz8,;1o,1;;
Jobs created and retained 1,1
Additional ?nancing raised s¡o,¸,,,¡o6
*Te Small Business Innovation Research (SBIR) program is a United States government program, coordinated by the Small Business
Administration, in which 2.5 percent of the total extramural research budgets of all federal agencies with extramural research budgets in
excess of $100 million are reserved for contracts or grants to small businesses. Annually, the SBIR budget represents more than $1 billion
in research funds. Over half the awards are to ?rms with fewer than 25 people and a third to ?rms of fewer than 10. A ?fth are minority or
women-owned businesses. Historically, a quarter of the companies are ?rst-time winners.
Congress established the Small Business Technology Transfer (STTR) program in 1992. It is similar in structure to SBIR and funds
cooperative research and development projects with small businesses in partnership with not-for pro?t research institutions (such as
universities) to move research to the marketplace.
Te SBIR/STTR programs are structured in three phases. Phase I (project feasibility) determines the scienti?c, technical and
commercial merit and feasibility of the ideas submitted. Phase II (project development to prototype) is the major research and development
e?ort, funding the prototyping and demonstration of the most promising Phase I projects. Phase III (commercialization) is the ultimate goal
of each SBIR/STTR e?ort and statute requires that Phase III work be funded by sources outside the SBIR/STTR program.
Year-end Report to the Legislature / FY 2011 / 22
MEDC FY 2011
SMARTZONES/BUSINESS ACCELERATORS
In zooo, the Michigan Economic Development Corporation launched the Michigan SmartZone
sr
Network—
an innovative, statewide, technology business acceleration strategy to build entrepreneurial talent and
infrastructure. Today, Michigan is home to 1¸ SmartZones in distinct geographical locations, each anchored by
an academic institution and supported by the local communities.
Michigan’s designated SmartZones provide distinct geographical locations where technology-based ?rms,
entrepreneurs, and researchers locate in close proximity to all of the community assets that assist in their
endeavors. Michigan’s 1¸ SmartZones include technology business accelerators that provide various services
to help facilitate the commercialization of technology emerging from universities and private companies.
Accelerators mine technology from universities and private enterprise, assist companies and entrepreneurs in
building business structures around technology, conduct product development, and help companies secure
necessary start-up ?nancing. Te SmartZones also are home to incubation facilities providing o?ce and
wet lab space to technology companies. Results prove Michigan’s SmartZone program successfully spurs
entrepreneurship and economic growth. SmartZones have contributed over s1.; billion in public and private
investment in the state.
Below is a list of the 1¸ SmartZones:
1. MTEC SmartZone—Michigan Technological University
2. Sault Ste. Marie—Lake Superior State University
3. Michigan Alternative and Renewable Center—Grand Valley State University
4. Western Michigan Science & Technology Center—Cook-DeVos Center for Health Sciences
5. CMU Research Corporation—Central Michigan University
5a. Mount Pleasant SmartZone Satellite—Mid-Michigan Innovation Center
6. Lansing Regional SmartZone—Cities of East Lansing and Lansing, Ingham County,
Lansing Regional Chamber of Commerce, MBI International, Michigan State University, the
Michigan State University Foundation and the University Corporate Research Park
7. Southwest Michigan Innovation Center—Western Michigan University
8. Battle Creek Unlimited—Western Michigan University and Kellogg Community College
9. Jackson Technology Park—Baker College, Jackson Community College and Spring Arbor University
10. Ann Arbor SPARK—University of Michigan and Eastern Michigan University
11. Pinnacle Aeropark—Detroit Metropolitan Airport, Wayne County Economic Development
Growth Engine (EDGE)
12. TechTown—Wayne State University
13. OU INCubator—Oakland University - Rochester
14. Macomb INCubator—Oakland University - Macomb
15. Automation Alley—Lawrence Technological University and Oakland University
Year-end Report to the Legislature / FY 2011 / 23
MEDC FY 2011
MICHIGAN DEFENSE CENTER
Te mission of the Michigan Defense Center (roc) is to assist Michigan companies to identify and secure
federal contract opportunities in the defense and homeland security sectors. Te MDC works in close
partnership with Michigan defense companies, economic development partners, Procurement Technical
Assistance Centers (v:»cs), and federal agencies to analyze defense sector budgets, attract defense and
homeland security opportunities for Michigan, and assure that the contract pipeline remains continuous.
PTACs are a valuable partner of the MDC. Tey match the capabilities of Michigan companies with
government contract opportunities by preparing them to compete for government contracts and educating
them regarding the opportunities, requirements and process of becoming successful government contractors.
PTACs provide pre- and post-award assistance, helping companies through the entire procurement process
from registering as a government contractor and ?nding bid opportunities through proposal preparation and
post-award modi?cations. Te MDC works closely with the PTACs on speci?c contracting opportunities and
helps the PTAC o?ces assemble Michigan companies to meet the supply chain needs of prime contractors and
federal agencies. Te MDC team assists large defense programs at the federal and prime contractor levels, while
the PTACs aid supply chain companies who bene?t from awards at the subcontracting level.
Te PTACs of Michigan are not-for-pro?t organizations funded by the Defense Logistics Agency (DLA),
the Michigan Economic Development Corporation (MEDC) and local funding partners. In ?scal year zo11, the
MEDC provided s1.¸; million to support 1z PTAC o?ces, approximately ¸¸ percent of their annual operation
budgets. Prior to the MDC, the MEDC supported PTACs at much lower funding levels, typically around
s¡o,ooo per center annually.
In ?scal year zo11, the MDC and PTACs assisted Michigan companies to obtain federal, state, and local
contracts for a combined total of s1.o¸¸ billion (MDC: sz8; million, PTACs: s;6¸.8¸ million).
PTAC ANNUAL ACTIVITY REPORT
Fiscal Year 2011 (10/01/2010–09/30/2011)
Center
New
?rms
Value of contracts
(local/state/federal)
Number of
documented jobs*
Northwest Michigan Council of Governments (Traverse City) ¡¸ s16¸,z¡1,61o ¸,z6¸
Northeast Michigan Consortium (Onaway) z, sz¸,6,,,1zz ¡;¡
Muskegon Area First (Muskegon) 8¸ s¸;,o¸¸,¸6z 1,1¡1
Grand Rapids Procurement O?ceiMDC A?liate z¸ s¸6,¡¡o,;8o ;z,
Macomb Regional PTAC (Warren) 1¡o s11z,oz¸,¸8; z,z¡1
Saginaw Future, Inc. (Saginaw) ¸o s8z,¸¸¸,8¸o 1,6¸1
Genesee Regional Chamber of Commerce (Flint) ¸6 s¸¡,;¸z,¸,8 1,o,¸
Southwest Michigan Technical Assistance Center (Kalamazoo) 8; s;1,8z¡,,;¡ 1,¡¸6
Technical Assistance Center of South Central Michigan (Jackson) 111 s¸1,o¡8,;8¡ 6z1
Downriver Community Conference (Southgate) ;; s,,¸8¸,z;¸ 188
PTAC of Schoolcraft College (Livonia) 18, s8o,181,8¡1 1,6o¡
Wayne State University PTAC (Detroit) ;1 s¡¸,6zz,z1¸ 8;z
Total 939 $765,833,974 15,317
° Each PTAC o?ce sends surveys to their active clients on a quarterly basis. Te companies are asked to return their
surveys to report the dollar values and number of federal, state and local contracts awarded during the quarter. Tere
could potentially be an under-reporting of contract activity since not all surveys are returned. Te MEDC is working
with the PTACs to increase their survey responses.
**As a result of federal/state/local funding
Year-end Report to the Legislature / FY 2011 / 24
MEDC FY 2011
PTAC METRICS REPORT
Fiscal Year 2011 (10/01/2010–09/30/2011)
Center
Surveys
sent
Surveys
returned
% survey
return
Clients
awarded
?rst time
contracts
Clients
awarded ?rst
time defense
contracts
Clients
awarded
all
contracts
Clients
awarded
defense
contracts
Northwest Michigan Council of
Governments
¸1z z¸1 ¡,º 1¡ ¡ 66 ¸¸
Northeast Michigan Consortium ¸8¸ ¸8; 66º 1 - ¸, z¸
Muskegon Area First ;1, ¸;¸ ¸zº ¸ ¸ 66 ¸¡
Grand Rapids Procurement
O?ceiMDC A?liate
6¸z z¸z ¡oº 1z 6 ¸z zz
Macomb Regional PTAC 1,;81 ,1, ¸zº 8 ¸ 16z 1¸1
Saginaw Future, Inc. ¸,¡ 1,, ¸¡º ¸ z ¸8 z6
Genesee Regional Chamber of
Commerce
¡oo z¸6 6¡º 8 ¸ 116 ¸¡
Southwest Michigan Technical
Assistance Center
,16 66o ;zº , 6 ;, ¡1
Technical Assistance Center of
South Central Michigan
6,¸ ¡o¸ ¸8º 1z ¸ ;¡ ¸;
Downriver Community
Conference
6¡, z¸¡ ¸,º ¸ ¸ ¸, z1
PTAC of Schoolcraft College z,oz8 ,8z ¡8º ; ¸ 8o ¸;
Wayne State University PTAC 1,1;, ¡¸1 ¸;º 1¸ 1z ¡1 z6
Total 10,688 5,371 50% 99 52 852 527
PTACS OF MICHIGAN
Fiscal Year 2011 (10/01/2010–09/30/2011)
Grantee Grant amount Percent of PTAC total budget
Northwest Michigan Council of Governments s16o,6oo ¡8º
Northeast Michigan Consortium s;¸,ooo ¡¸º
Muskegon Area First s¸¸,ooo z6º
Macomb Regional PTAC s1,o,ooo ¸8º
Saginaw Future, Inc. s1o¡,ooo ¸¸º
Genesee Regional Chamber of Commerce sz16,ooo ,8º
Southwest Michigan TAC s1zo,ooo ¡¸º
TAC of South Central Michigan s1o¸,ooo ¸¡º
Downriver Community Conference s,¸,ooo 66º
PTAC of Schoolcraft College s1¸o,ooo ¸1º
Wayne State University PTAC s8¸,ooo ¸6º
Grand Rapids Procurement O?ce° sz1¸,ooo 1ooº
Total $1,568,600
*Te Grand Rapids Procurement O?ce is a MDC a?liate and does not receive funding from the Federal Defense Logistics Agency.
Year-end Report to the Legislature / FY 2011 / 25
MEDC FY 2011
EXPORT ASSISTANCE
Michigan is the nation’s eighth largest exporting state and global trade is responsible for thousands of jobs here.
Te MEDC has assembled an export team and is working across department and program lines to establish a
supportive service structure including ?nancial resources available to small businesses. Te MEDC’s export plan
was developed through collaboration with strategic export service providers including the U.S. Department
of Commerce, U.S. Small Business Administration, Michigan Small Business Technology & Development
Center, Michigan Department of Agriculture and Rural Development, and Michigan State University’s Center
for International Business Education and Research, along with Automation Alley and Van Andel Global Trade
Center. Te MEDC will coordinate a statewide export assistance delivery system with public and private
resources to ensure company access regardless of geographic location.
To support this mission, the Michigan Global Marketplace Program was developed to help moderate the
incremental costs over and above traditional costs of a standard line of credit for companies. Tis program
was established under the Michigan Business Growth Fund (rnor), which utilizes State Small Business Credit
Initiative federal funding to provide for various loan enhancements that induce and facilitate the provision of
traditional commercial loans to small and medium size businesses in Michigan. Te Michigan Global Marketplace
Program will use a small amount of public resources to defray the incremental cost di?erence between domestic
and foreign working capital loans. Tis will have a signi?cant impact on pro?t margins of the exporter by lowering
the weighted average cost of capital, which will induce entry and expansion into foreign markets making those
opportunities nearly equivalent to domestic sales opportunities in terms of the cost of capital. Eligible companies
may qualify for reimbursement of up to ;¸ percent of eligible costs which are directly related to ?nancing exports.
Because the program was recently launched, no loans were approved in ?scal year zo11.
Te Pure Michigan State Trade Export Promotion (s:vv) program will launch on October 1, zo11, to help
small and medium-sized businesses launch, expand and enhance exporting opportunities. Michigan companies
with fewer than ¸oo employees can qualify for ?nancial assistance for export-related activities. Launched by the
U.S. Small Business Administration, the program is designed increase the number of Michigan companies that
export and introduce current exporters to new foreign markets and buyers. Direct reimbursements to quali?ed
small and medium-sized export companies may be available to develop or expand export-related activities
through cost reimbursement of ¸o percent of allowable export-related activities. Eligible companies may qualify
for up to sz¸,ooo in assistance to enhance their ability to launch or grow export operations in Michigan.
Both of these programs are part of the MEDC’s economic gardening strategy to support existing Michigan
companies and to create new jobs.
Year-end Report to the Legislature / FY 2011 / 26
MEDC FY 2011
PRIVATE ACTIVITY BONDS
Private Activity Bonds (v»ns) provide companies with capital cost savings stemming from the di?erence
between taxable and tax-exempt interest rates. Te Michigan Strategic Fund (rsr) has the authority to provide
tax-exempt federal bonds. Tese bonds ?nance manufacturing projects, not-for-pro?t corporation projects, and
solid or hazardous waste disposal facilities. PABs lower the cost of capital for mature ?rms and help address a
critical gap in project ?nancing throughout the state.
TAX-EXEMPT BONDS
Fiscal Year 2011 (10/01/2010–09/30/2011)
Company City County Approved amount Type
Erwin Quarder, Inc. Cascade Charter Twp. Kent sz,¸oo,ooo New
MANSiMoeller Manufacturing Company Wixom Oakland s6,¡oo,ooo Manufacturing
Sintel, Inc. Spring Lake Twp. Ottawa s¡,¡¸o,ooo New
EnovateIT, LLC Canton Wayne sz,1¸o,ooo Manufacturing
Total $15,300,000
TAXABLE BONDS
Fiscal Year 2011 (10/01/2010–09/30/2011)
Company City County Approved amount Type
Orchestra Place Renewal Partnership Project Detroit Wayne s1;,1¸¸,ooo
Conversion of zooo Tax-
Exempt Bonds to Taxable
Total $17,135,000
NON-PROFIT, SOLID WASTE, REFUNDING/REFINANCING
Fiscal Year 2011 (10/01/2010–09/30/2011)
Company City County Approved amount Type
Porter Hills Presbyterian Village, Inc. Grand Rapids Charter Twp. Kent s¡,,68,ooo Refunding
GreenPath, Inc. Farmington Hills. Oakland s1,,ooo,ooo Non-pro?t
Sintel, Inc. Spring Lake Twp Ottawa sz,z1¸,ooo Refunding
Merit Network, Inc. Various Various s8,ooo,ooo Non-Pro?t
Air Products and Chemicals, Inc. Detroit Wayne s,¸,ooo,ooo
First supplemental trust
indenture amendireissuance
new monthly mode
Cadillac Place O?ce Building, SOM Wayne Wayne s11,,11¸,ooo New
Total $248,298,000
RECOVERY FACILITY BONDS
Fiscal Year 2011 (10/01/2010–09/30/2011)
Company City County Approved amount Type
JBS USA, LLC Gun Lake Charter Twp. Allegan s16,o¡¡,6;, Recovery
Te Hagerty Group, LLC Traverse City Grand Traverse s8,18¡,ooo Recovery
Bell’s Brewery Galesburg Kalamazoo s1z,1oo,ooo Recovery
West Michigan Rental Properties, LLC Muskegon Muskegon sz,¡oo,ooo Recovery—Series A
West Michigan Rental Properties, LLC Muskegon Muskegon sz¸o,ooo Recovery—Series B
Te Detroit Edison Company Various Various s1,,8¸¸,ooo Recovery
Te Kroger Company Various Various s8o,,z¸,ooo Recovery
Total $139,758,679
Year-end Report to the Legislature / FY 2011 / 27
MEDC FY 2011
MICHIGAN ECONOMIC GROWTH AUTHORITY PROGRAM
Te Michigan Economic Growth Authority (rvo») o?ers a refundable tax credit against the Michigan Business
Tax (rn
to companies expanding or relocating their operations in Michigan. MEGA addresses the costdi?erentials between Michigan and competing states to provide companies with a strong business case to
choose Michigan.
Te MEGA credit is up to 1oo percent of the state’s personal income tax rate multiplied by the actual wages
and employer-paid health care costs on quali?ed new or retained jobs. Should the credit exceed a ?rm’s annual
tax liability, the di?erence is refundable. By law, the credit may be up to zo years in length. Te state awards
these tax credits annually after companies create or retain jobs. By carefully following program requirements,
monitoring the job creation and tax credits, and focusing on high-tech industries, MEGA helps Michigan to
attract the businesses that can diversify and stabilize the state’s economic development.
Eligible companies are typically engaged in manufacturing, research and development, wholesale and trade,
headquarter o?ce operations, or certain tourism projects. Retail facilities are not eligible. Credits are awarded
based on the strength of the company’s project, competition with other non-Michigan locations, and program
guidelines. Tey also are subject to approval by the MEGA Board, a seven-member body appointed by the governor.
Tere are four types of MEGA tax credits—Standard, Rural, High-Tech, and Retention—each with speci?c
criteria for qualifying for an award.
Te MEGA Board executed ;z agreements in ?scal year zo11. Of those agreements, ¸1 were Standard MEGA
credits, z¡ were High-TechiHigh-Wage credits, 1z were Retention credits, and four were Rural credits.
A 6.o percent Michigan Corporate Income Tax (ci
will be levied beginning January 1, zo1z, replacing theMichigan Business Tax. Te new CIT eliminates almost all tax credits, including MEGA credits, however, any
taxpayer that has an existing credit (or a “certi?cated credit”) approved and executed before January 1, zo1z, will
be able to realize the full bene?ts of their credit. Te new tax system will allow taxpayers to receive the bene?ts
of their certi?cated credits by electing to continue to ?le the MBT for the duration of their credits.
Beginning in January zo1z, the Michigan Strategic Fund and the Michigan Economic Development
Corporation will operate new appropriation-based economic development and community revitalization
programs that will provide s1oo million in incentives for highly competitive projects in Michigan.
MBT CREDIT APPROVALS (not including Brown?elds)
Fiscal Year 2011 (10/01/2010–09/30/2011)
Company Project city
Project
county
Projected
direct jobs
created
Projected
direct jobs
retained
Projected
capital
investment
Estimated
credit amount
Eovations, LLC Bay City Bay 6¡ s16,ooo,ooo s1,z,¸,ooo
IPC Print Services, Inc. St. Joseph Berrien zo8 sz¸,o¸¸,ooo s1,o;1,ooo
Patriot Solar Group, LLC Albion Calhoun 1,¸ s¸,,¸¡,ooo s1,z88,ooo
Spartan Motors, Inc. Charlotte Eaton ¡¸o s¸,1¡¡,ooo s8,8¸,,ooo
Creative Foam Corporation Fenton Genesee 6¸ s1,¸oo,ooo s¸6z,ooo
Magna Electronics Holly Genesee ¸8¸ s6¡,8¸¸,¸¸8 sz,11o,ooo
Martinrea Jonesville, LLC Jonesville Hillsdale 168 s1¸,8,,,z;, s,,o,ooo
Gemini Group, Inc. (retention) Bad Axe Huron ¸¸¸ s¸z,¸6,,1o¸ s¸,¸8¸,ooo
Gemini Group, Inc.°
(standard)
Bad Axe Huron z,o s,;1,ooo
Force By Design, Inc. East Lansing Ingham ¸o s¡¸o,ooo sz¸1,ooo
MedAssurant, Inc. Lansing Ingham ¡o¡ s¡,o¸¸,ooo sz,z¸z,ooo
XG Sciences, Inc. Lansing Ingham ¸o s6,6¸8,,oo s¡¸6,ooo
Year-end Report to the Legislature / FY 2011 / 28
MEDC FY 2011
MBT CREDIT APPROVALS (not including Brown?elds) continued
Fiscal Year 2011 (10/01/2010–09/30/2011)
Company Project city
Project
county
Projected
direct jobs
created
Projected
direct jobs
retained
Projected
capital
investment
Estimated
credit amount
Chemetail U.S., Inc. Jackson Jackson ;¡ szo,;¸o,ooo s8z1,ooo
Michigan Automotive
Compressor, Inc.
Parma Jackson ¸6z s;z,ooo,ooo s¡,,¡1,ooo
Atomic Object, LLC Grand Rapids Kent ¸o s,8¸,ooo s16z,ooo
Dematic Corporation Grand Rapids Kent ¸o¸ s1o,,o1,ooo s¸,z¸z,ooo
Dynamic Captioning, LLC Grand Rapids Kent ¡o s¸¸¡,ooo s1;o,ooo
Knape & Vogt
Manufacturing Company
Grand Rapids Kent 1zz s1,z¡;,¡8¸ s¸¸¸,ooo
Hearthside Food Solutions Kentwood Kent ¸oz s1;,¸oo,ooo s1,z¸z,ooo
Key Plastics, LLC
Howell,
Farmington
Hills and
Cascade
Charter Twp.
Livingston,
Oakland and
Kent
z,; s1o,z,;,8oo s1,1o¸,ooo
Yanfeng (USA) Automotive
Trim Systems, Inc.
Harrison Twp. Macomb 1¸1 s1;,o,¸,;¸; s1,1o6,ooo
KUKA Robotics Corp. USA Shelby Twp. Macomb 68 s¡,6,o,ooo s1,o¸,,ooo
Acument Global
Technologies
Sterling
Heights
Macomb 1¸o s¸,11¸,ooo s8;¸,ooo
Macomb Pipe and Supply
Company, Inc.
Sterling
Heights
Macomb 1o; s6,¸oo,ooo s1,oo¸,ooo
Mountain Valley Recycling,
LLC
Sterling
Heights
Macomb ¸,6 sz,,¸oo,ooo s¸,1oz,ooo
Michigan Iron Nugget, LLC Tilden Twp. Marquette 11¡ sz8o,ooo,ooo s1,,¸;,ooo
Fluid Routing Solutions
Incorporated
Big Rapids Mecosta z;; s1z,¸oo,ooo s1,6,6,ooo
Nu-Vu Food Service
Systems
Menominee Menominee ¡o s,¸o,¸oo s,o,ooo
Gerdau Macsteel Monroe Monroe ;;8 s66,,¸o,1oo s,,z8,,ooo
Benteler Automotive
Corporation
Auburn Hills Oakland z¸o s¸,,66,¸oo s1,z¡6,ooo
Chrysler Group, LLC Auburn Hills Oakland zo,ooo s1,ooo,ooo,ooo s1,¸6o,18,,ooo
Dokka Fasteners,
Incorporated
Auburn Hills Oakland ,o szo,¸,6,ooo s1,¸z1,ooo
Faurecia Interior Systems,
Incorporated
Auburn Hills Oakland ¡z8 s1,,¸8o,ooo s¡,¸zz,ooo
Montaplast of North
America, Incorporated
Auburn Hills Oakland z¸ sz,¸¸;,ooo s¸z¸,ooo
Lakeside Software, Inc.
Bloom?eld
Hills
Oakland 1,8 s6,1¡¡,ooo s;¸1,ooo
Tianhai Electric North
America, Inc.
Lake Orion Oakland zoz s¸,¡68,ooo sz,,,ooo
Year-end Report to the Legislature / FY 2011 / 29
MEDC FY 2011
MBT CREDIT APPROVALS (not including Brown?elds) continued
Fiscal Year 2011 (10/01/2010–09/30/2011)
Company Project city
Project
county
Projected
direct jobs
created
Projected
direct jobs
retained
Projected
capital
investment
Estimated
credit amount
Detroit Heavy Truck
Engineering, LLC
Novi Oakland ¡, s¡,6z¡,ooo sz¸¡,ooo
Macprofessionals, Inc. Novi Oakland 11, sz,16¸,o¸¡ s¸6,,ooo
Summit Health, Inc. Novi Oakland z¸z s11,¸;¸,¸8¡ s¸1¡,ooo
Toyota Boshoku America,
Inc.
Novi Oakland ¡o s¸,z1¸,o;o sz1o,ooo
HP Enterprise Services, Inc. Pontiac Oakland z¸o s¡,;,o,ooo s¸,¸¸z,ooo
Otto Block Polyurethane
Technology, Inc.
Rochester Oakland ,8 s1¸,¸¡;,ooo s6;z,ooo
Bright Automotive
Incorporated
Rochester
Hills
Oakland zo¡ s11,o6z,ooo s¡,¸z;,ooo
WABCO North America,
LLC
Rochester
Hills
Oakland 1oo sz,18;,¡6o s,8;,ooo
Member Driven Technologies Southgate Oakland 1o1 s6,¡86,z¸1 s¸¸;,ooo
Dialogue Marketing, Inc. Troy Oakland z¸o s¸,o1¸,ooo s¡;¡,ooo
Kenersys Americas, LLC Troy Oakland 16o s1o,z¡z,ooo s1,o1;,ooo
Magna Steyr North America Troy Oakland zoo s;6¸,ooo s1,¸;z,ooo
P3-North America, Inc. Troy Oakland 6¸ s¸¸z,1¸o s¡86,ooo
Hexagon Metrology Wixom Oakland ;¸ s¸,o6¡,ooo s¸o6,ooo
Plasan Carbon Composites,
Incorporated
Wixom Oakland z¸8 sz1,z;o,¸oo s¸,¡8,,ooo
Sketee-Van Huis Holland Ottawa 18o s¸,¸zz,ooo s86¸,ooo
Genetex Corporation Zeeland Ottawa 1,11o s16o,z¸o,ooo sz,¡¡6,ooo
Magna Exteriors and
Interiors USA, Inc.
China
Township
St. Clair ¸¸¸ s1¡,¡¡o,1oo s1,¡,6,ooo
Metalloid Corporation Sturgis St. Joseph ¸o s¸6¸,ooo szz8,ooo
American Broach and
Machine Company
Ypsilanti Washtenaw ¡¸ sz¸,ooo,ooo s¸;¸,ooo
MTU Detroit Diesel, Inc.
(retention)
Brownstown Wayne z¡¸ s¸z,oo6,ooo s¸,8,z,ooo
MTU Detroit Diesel, Inc.
(standard)*
Brownstown Wayne 11¸ s1,;1z,ooo
Merit Technologies
Worldwide
Canton Wayne 8, s16,888,ooo s¡¡z,ooo
Ford Motor Company Dearborn Wayne z8,ooo s8¸o,ooo,ooo s,o,,oz¸,ooo
Health Business Solutions Dearborn Wayne zo6 sz,618,,zo s816,ooo
Crain Communications, Inc. Detroit Wayne ¸o s¸,¸,¸,ooo s¡¡¸,ooo
EnovateIT, LLC Ferndale Wayne 16o s¡,¡¸o,ooo s1,1o¸,ooo
Science Applications
International Corporation
Livonia Wayne ¸o s8o¸,ooo s¸8,,;o¸
Year-end Report to the Legislature / FY 2011 / 30
MEDC FY 2011
MBT CREDIT APPROVALS (not including Brown?elds) continued
Fiscal Year 2011 (10/01/2010–09/30/2011)
Company Project city
Project
county
Projected
direct jobs
created
Projected
direct jobs
retained
Projected
capital
investment
Estimated
credit amount
Cequent Performance
Products, Inc.
Plymouth Wayne 6o s¸,¡;z,o;¸ s8,;,ooo
Roush Cleantech, LLC Plymouth Wayne ¸¡ sz,1o¸,¸,o s1,1¸6,ooo
Changan U.S. Research and
Development Center, Inc.
Plymouth
Township
Wayne 161 s;,o1o,ooo s1,;zz,ooo
Piston Automotive, LLC Redford Wayne 1¸¸ s1¡,,¸;,ooo s88,,ooo
Systrand Manufacturing
Corporation
Rockwood Wayne 16z s1,,z¸o,ooo s;16,ooo
AJM Packaging Corporation Southgate Wayne 1z¸ sz8,¸¸o,ooo s¸6¸,ooo
Unistrut International
Corporation
Wayne Wayne 86 s¡,¸z¸,ooo s6o6,ooo
Avon Protection Systems,
Incorporated
Cadillac Wexford 1¡¸ s6oo,ooo s¸,6,ooo
Totals 10,748 51,036 $3,105,391,476 $2,379,963,703
*Combo Credit-Capital Investment reported only under Retention Credit
Year-end Report to the Legislature / FY 2011 / 31
MEDC FY 2011
MICHIGAN ECONOMIC GROWTH AUTHORITY PROGRAM
In addition to MEGA tax credits, there are other MBT credits subject to MEGA Board approval that are designed
to advance new industries with the potential for signi?cant growth. Advanced Battery Credits o?er a refundable
credit against the MBT toward advanced battery R&D and engineering, and commercial scale package and
cell manufacturing. Defense Contracting Credits o?er a refundable credit against the MBT to help Michigan
companies procure federal contracts from the Department of Defense, Department of Energy, or the Department
of Homeland Security. Te credit is based on the new jobs created as a result of the federal contract awarded.
Tese MBT credits also are eliminated beginning January 1, zo1z, however, any taxpayer that has an existing
credit (or a “certi?cated credit”) approved and executed before January 1, zo1z, will be able to realize the full
bene?ts of their credit.
OTHER MBT CREDIT APPROVALS
Fiscal Year 2011 (10/01/2010–09/30/2011)
Company Project city Project city
Project
county
Projected
capital
investment
Maximum
authorized
credit
Vehicle Engineering Battery Credit
Chrysler Group, LLC Auburn Hills Auburn Hills Oakland s1¸;,ooo,ooo s¡¸,ooo,ooo
Defense Contracting Credit
Powertrain Integration, LLC Madison Heights Ypsilanti Washtenaw sz,ooo,ooo s¸oo,ooo
Total $139,000,000 $45,300,000
Year-end Report to the Legislature / FY 2011 / 32
MEDC FY 2011
BROWNFIELD REDEVELOPMENT PROGRAM
Te Brown?eld Redevelopment program promotes redevelopment of contaminated and underutilized property
in Michigan in order to bring that property back to productive use. Te incentive program, administered by the
MEDC, commenced in zooo and has two major statutory elements—the Brown?eld Redevelopment Act and a
Michigan Business Tax (rn
credit. Te program provides incentives to companies, developers or businessesthrough tax increment ?nancing assistance andior tax credits for the redevelopment of brown?eld property.
Te MEDC and the Michigan Department of Environmental Quality provide assistance and coordinate
incentives to get challenged sites redeveloped.
Beginning in January zo1z, the Michigan Strategic Fund and the Michigan Economic Development
Corporation will operate new appropriation-based economic development and community revitalization
programs that will provide s1oo million in incentives for highly competitive projects in Michigan.
A 6.o percent Michigan Corporate Income Tax (ci
will be levied beginning January 1, zo1z, replacingthe Michigan Business Tax. Te new CIT eliminates almost all tax credits, including Brown?eld MBT credits,
however, any taxpayer that has an existing credit (or a “certi?cated credit”) approved and executed before January
1, zo1z, will be able to realize the full bene?ts of their credit. Te new tax system will allow taxpayers to receive
the bene?ts of their certi?cated credits by electing to continue to ?le the MBT for the duration of their credits.
BROWNFIELD MBT CREDIT APPROVALS
Fiscal Year 2011 (10/01/2010–09/30/2011)
Company City County
Estimated credit
amount
Excel-Allegan LDHA, LP Allegan Allegan s¸8,,1;6
CRA 200 Allegan St., LLC Plainwell Allegan s¸z¸,811
Madison Arts, LLC Bay City Bay s¸¸z,;¸o
Oddfellows Hall, LLC Bay City Bay s161,¸;1
Swarts Tower, LLC Bay City Bay s¡oo,ooo
Wolverine Arts, LLC Bay City Bay s¸,¸,;¸o
Everest Campus, LLC Benton Harbor Berrien s¸,ooo,ooo
Whirlpool Corporation Benton Harbor Berrien s;,;¡o,ooo
JMWingard, LLC Coldwater Branch s,;¸,z¸,
McCullough Investments, LLC Battle Creek Calhoun s,¸,¡¸8
Spartan Motors Chassis, Inc. Charlotte Eaton s¡6¸,¸oo
Lurvey White Ventures 1, LLC Flint Genesee s¸,6o1,;o¸
Grand Traverse Hotel Properties, LLC Traverse City Grand Traverse sz,ooo,ooo
Lake Street Properties VII, LLC Traverse City Grand Traverse s1,¸oo,ooo
Sub Area 3, LLC Traverse City Grand Traverse s1,1¸6,o6;
A & G Partnership, LLC East Lansing Ingham s1,61,,o¡1
St. Anne, LLC East Lansing Ingham s66;,,;¸
George F. Eyde Limited Family Partnership,
Louis J. Eyde Limited Family Partnership
Lansing Ingham s¡,86,,6¸¡
Marketplace Partners, LLC Lansing Ingham s1,,,¸,¡o¸
Marketplace Partners, LLC Lansing Ingham s1,6o¸,¡o6
Michigan Avenue Investors II, LLC Lansing Ingham s11¸,81¸
RKH Investments, LLC Lansing Ingham s;8,1z¸
Excel-New Urban Jax LDHA LP Jackson Jackson s1,¡¡8,;1o
232, LLC Kalamazoo Kalamazoo s8o,ooo
Year-end Report to the Legislature / FY 2011 / 33
MEDC FY 2011
BROWNFIELD MBT CREDIT APPROVALS continued
Fiscal Year 2011 (10/01/2010–09/30/2011)
Company City County
Estimated credit
amount
Catalyst Development Co. 7, LLC Kalamazoo Kalamazoo s,;8,¸8,
Kilgore Point, LLC Kalamazoo Kalamazoo s¸61,¡,z
LADD Real Estate, LLC Kalamazoo Kalamazoo s1,z,¸¡;
People’s Food Co-operative of Kalamazoo Kalamazoo Kalamazoo s1¸6,;¡1
Peregrine Plaza, LLC Kalamazoo Kalamazoo s¸¸¸,z¸6
100 Commerce Development, LLC Grand Rapids Kent s¡oo,ooo
20 Monroe Bldg Co., LP Grand Rapids Kent s¡,¸zo,ooo
38 Front Redevelopment, LLC Grand Rapids Kent s8,ooo,ooo
68 Commerce, LLC Grand Rapids Kent s1¸z,z1¸
Acme Investors, LLC Grand Rapids Kent s6,6,¸z¸
CityFlats Grand Rapids RE, LLC Grand Rapids Kent s61z,ooo
Division Park Avenue, LDHA LP Grand Rapids Kent s1,z8z,o6¡
Fulton Property Holdings, LLC Grand Rapids Kent s¸¸¸,1¸6
Grand Rapids Urban Market Holdings, LLC Grand Rapids Kent s¸,¡oo,ooo
H Development Group, LLC and
Eastown Veterinary Clinic, P.C.
Grand Rapids Kent s1¸6,¸oo
Harris Lofts LLC, Nextwork Group, LLC Grand Rapids Kent s,¸o,ooo
Health Park Central, LLC Grand Rapids Kent s1,o6z,¸oo
O?site Lake Drive, LLC Grand Rapids Kent s181,z¸o
Serrano Lofts, LDHA LP Grand Rapids Kent s;8;,86;
Downtown Trini Cafe, Inc. Sparta Kent s6¡,¸;¸
Undercar Products Group, Inc. Wyoming Kent s1,o¸;,¸oo
Mar Sal Investments, LLC and
Tom Maceri and Son, Inc.
St. Clair Shores Macomb s¸8o,,¸,
Chrysler Group, LLC Sterling Heights Macomb s1o,ooo,ooo
Macomb Pipe & Supply Co.
dba Te Macomb Group
Sterling Heights Macomb s¸¸o,ooo
Ceratizit USA, Inc. Warren Macomb s¸¸o,ooo
General Motors, LLC Warren Macomb s1o,ooo,ooo
RioVista, LLC Manistee Manistee s¡6,¸oo
KDMAC Ventures, LLC Ludington Mason s¡¸,zoo
McMaster Brother Properties, LLC Scottville Mason s¡¸,z¸8
Te Dow Chemical Company Midland Midland s1,z¸o,ooo
JDK, LLC Monroe Monroe sz6;,z;8
Lafayette Place Lofts, LLC Pontiac Oakland sz,z¡,,o8¡
Tower Real Estate Ventures, LLC South?eld Oakland s1,z,¡;o
Mindset Properties, LLC Grand Haven Ottawa sz¸o,ooo
Downtown Area Development, LLC Saginaw Saginaw s¸¡¸,¸¸¸
Rebuild Lebowsky, LLC Owosso Shiawassee s,¸o,ooo
Wesener, LLC Owosso Shiawassee s¸8¡,ooo
Landmark Development LLC Port Huron St. Clair s1,61¸,zoo
Mellencamp Building LLC Ypsilanti Washtenaw s¸1¡,;z¡
Severstal Dearborn, LLC Dearborn Wayne s1,z¸o,ooo
Severstal Dearborn, LLC Dearborn Wayne s1o,ooo,ooo
Year-end Report to the Legislature / FY 2011 / 34
MEDC FY 2011
BROWNFIELD MBT CREDIT APPROVALS continued
Fiscal Year 2011 (10/01/2010–09/30/2011)
Company City County
Estimated credit
amount
6o, E. Kirby Lofts, LLC Detroit Wayne s6;¸,¸oo
8,oo Gratiot, LLC Detroit Wayne s661,¡oo
Brentwood Detroit, LLC Detroit Wayne s1,o,8zo
Comerica Bank Detroit Wayne s1,o6¸,8¡6
Coronado Apartments, LDHA LP Detroit Wayne s¡¸¸,;o¸
DCC Community Development, LLC Detroit Wayne s,¡,¸;6
Detroit Termal, LLC Detroit Wayne sz8¸,1z¸
DRSN Real Estate, LLC Detroit Wayne s;;1,,z8
Emerald Springs IA, LDHA LP Detroit Wayne sz,¸o,,;z;
Free Press Holdings, LLC Detroit Wayne s1o,ooo,ooo
Griswold Holdings, LLC Detroit Wayne s¸16,88o
Historic Book House, LLC Detroit Wayne s¡oo,ooo
Madison Teatre Building, LLC Detroit Wayne s,¸o,ooo
Metro International Trade Service, LLC Detroit Wayne s¸,¸,;¸o
Palmer Park Square LDHA, LP Detroit Wayne s1¸6,¡6,
Palmer Park Square LDHA, LP Detroit Wayne sz¸o,ooo
Palmer Park Square LDHA, LP Detroit Wayne s¸1¸,618
Palmer Park Square LDHA, LP Detroit Wayne s¸8z,¡o¡
Palmer Park Square LDHA, LP Detroit Wayne s¸;z,1¸6
Palmer Park Square LDHA, LP Detroit Wayne s¡oz,8,,
Paradise Valley Investment Group, LLC Detroit Wayne s1z,,66o
PVM EJNP Real Estate Company, LLC and
Detroit A?ordable Assisted Living LDHA, LP
Detroit Wayne sz,¸z1,¸1;
Renaissance Village, LDHA LLC Detroit Wayne s¸¡1,18¡
Renaissance Village, LDHA LLC Detroit Wayne sz,ooo,ooo
S. Dot Collection, LLC Detroit Wayne s¡;,¸¸6
S. Dot Collection, LLC Detroit Wayne s,6,¡1z
Sugar Hill Residential, LLC Detroit Wayne sz,¡,6,,¡¸
Toma Properties, LLC Detroit Wayne s¡61,6z8
Village ParkiMHT, LDHA LLC Detroit Wayne s¸z¸,;z¸
Woodward O?ces, LLC Detroit Wayne s1o,ooo,ooo
Sable Acquisitions, LLC, Flavor, LLC Hamtramck Wayne s¸oz,68o
City Marketplace, LLC Inkster Wayne s1¸z,ooo
Total $146,951,381
°API West Village, LLC—AMENDMENT #1 East Lansing Ingham s¸z1,¡;1
°Auburn REO LLC fka Cass Can?eld, LLC—AMENDMENT #1 Detroit Wayne s1,61;,¡¸,
°Cass Plaza Apartments, LDHA LP—AMENDMENT #1 Detroit Wayne s6z1,¸¡8
Amendment total $2,760,458
*Please note that amendments are only reported when credit increased.
Year-end Report to the Legislature / FY 2011 / 35
MEDC FY 2011
BROWNFIELD TAX INCREMENT FINANCING APPROVALS
Fiscal Year 2011 (10/01/2010–09/30/2011)
Brown?eld Authority Name of project City County TIF amount
City of Plainwell Former Plainwell Paper Mill Plainwell Allegan s¸68,¸¡6
City of Cheboygan SAFCU—Straits Area Federal Credit Union Cheboygan Cheboygan s¡86,6o,
County of Grand Traverse Land Bank Authority Parcels
Interlocheni
Traverse City
Grand
Traverse
s¸o,¸¸;
City of East Lansing z11 Albert Avenue Redevelopment East Lansing Ingham s¸,o,;,1¸¸
City of East Lansing Te St. Anne Redevelopment project East Lansing Ingham s1,¸¸o,zo,
City of East Lansing Spartan Technology Development East Lansing Ingham sz6z,o68
City of Lansing Marketplace Development Lansing Ingham s6,;1;,¸¸6
City of Grand Rapids
Wealthy Je?erson Development Initiative
Parcel B
Grand Rapids Kent s1,o,;,z,,
City of Wyoming
Former General Motors Corporation Grand
Rapids Metal Plant ¸6th Street SW
Wyoming Kent s8,¡¸z,,,8
City of Port Huron Former Sperry Department Store Port Huron St. Clair s;1o,,;1
County of Washtenaw
Deli Partners, LLC (aka Zingerman’s
Delicatessen Redevelopment)
Ann Arbor Washtenaw s8z,,z,1
County of Washtenaw Packard Square Redevelopment project Ann Arbor Washtenaw sz,o¡o,1¡,
City of Dearborn Continuous Annealing Line Dearborn Wayne s,;,¸o8,616
City of Dearborn Te Union at Dearborn Dearborn Wayne sz,¸¡o,6,,
City of Dearborn Heights Tim Hortons Store redevelopment project
Dearborn
Heights
Wayne s6,,61;
City of Detroit Free Press Plaza and Apartments Detroit Wayne s¡¡z,,8,
City of Detroit
West Grand Blvd. redevelopment project:
1660 West Grand
Detroit Wayne s¡1,1z1
City of Detroit
West Grand Blvd. Redevelopment project:
1900 West Grand Blvd. and 1905 West
Grand Blvd.
Detroit Wayne s1zo,¡o,
City of Detroit East Je?erson Neighborhood project Detroit Wayne s¸8¸,;¸8
City of Detroit
Former Gas Station
(1o1o8 and 1o1¸o West ; Mile Road)
Detroit Wayne s¸o1,1¸¸
City of Detroit Queen Lillian Medical O?ce Building Detroit Wayne s¡o8,6¡;
City of Hamtramck
1ozo1 Joseph Campau Redevelopment
project
Hamtramck Wayne s116,ooo
City of Hamtramck ¸¸oo Denton Redevelopment Hamtramck Wayne s¡;o,,¸¸
County of Wayne
Lincoln Park Shopping Center
Redevelopment
Lincoln Park
and Allen Park
Wayne s¸,8oz,¡,¸
City of Trenton Riverside Commons Redevelopment project Trenton Wayne sz,zz¡,z¸o
Year-end Report to the Legislature / FY 2011 / 36
MEDC FY 2011
BROWNFIELD TAX INCREMENT FINANCING APPROVALS continued
Fiscal Year 2011 (10/01/2010–09/30/2011)
Brown?eld Authority Name of project City County TIF amount
City of Westland
Former Showcase Cinema Brown?eld
Redevelopment
Westland Wayne s18;,6¸¸
City of Wyandotte
Former Wyandotte Police Station
Redevelopment project
Wyandotte Wayne sz1o,;¸z
Total $134,274,222
° County of Grand Traverse
Traverse City Place project-Hotel Indigo
Phase—AMENDMENT #z
Traverse City
Grand
Traverse
s1,1o¸,¸¡;
° County of Grand Traverse
Boardman Lake Avenue pathway and Trail
System—AMENDMENT #1
Traverse City
Grand
Traverse
s6,8;o,1¡6
° County of Grand Traverse
Grand Traverse Commons and the Village
at Grand Traverse Commons, Former
Traverse City State Psychiatric Hospital—
AMENDMENT #1
Traverse City
and Gar?eld
Twp.
Grand
Traverse
s1,,,6z,z,z
° City of Lansing
East Village Housing project aka
Boys Training School Property—
AMENDMENT #1
Lansing Ingham szo¡,¸¡,
Amendment total $28,142,334
*Please note that amendments are only reported when credit increased.
Year-end Report to the Legislature / FY 2011 / 37
MEDC FY 2011
MICHIGAN FILM INCENTIVES
Te Michigan Film and Digital Media Production Incentive, which expires December ¸1, zo11, provided
quali?ed production companies up to a ¡o percent refund across the board for Michigan expenditures with the
opportunity to earn an additional z.o percent o?ered for non-Michigan below-the-line labor.
In zo11, z1 projects were approved for a total of sz¡,z6¸,18¡ in incentives under the Michigan Film and Digital
Media Production Incentive. In addition to criteria laid out in the statute, preference was given to projects that
best met the following criteria:
1. Te production is ?nancially viable.
2. Utilization of existing infrastructure (studios, post-production facilities, etc.).
3. Te number and wage levels of direct jobs for Michigan residents created by a production.
4. Ability to show Michigan in a positive light and promote the state as a tourist destination.
5. Magnitude of estimated expenditures in Michigan.
Beginning in January zo1z, the Michigan Film O?ce will operate within a sz¸ million appropriation budget and
approve projects under the guidelines set in Public Act z,1 of zo11.
COMPLETED MICHIGAN FILM AND DIGITAL MEDIA PRODUCTION INCENTIVES
Fiscal Year 2011 (10/01/2010–09/30/2011)
Project title
Total Michigan
spend (approved)
Incentive amount
(approved) Description Locations
Keys to the Goose s1oo,ooo s¡z,ooo Documentary Ferndale, Lansing
Chasing Jimmy s8o,ooo s¸z,ooo Documentary
Caseville,
Huron County
Sky Kids ¡ s¡,¸1z,ooo s1,8o¡,8oo Feature ?lm (post) Birmingham
Hung, Season ¸ sz,6¡8,¡86 s1,o¸,,¸,¡ Television series
Troy, Hamtramck,
West Bloom?eld,
Detroit
Domestic Justice s;6,¡¸o s¸z,1o, Television pilot Livonia, Ferndale
Te Citizen s1,¸¸6,zoo s¸61,zo¡ Feature ?lm Detroit
I, Alex Cross s8,¸o,,¸8; s¸,¸;¸,,¡¸ Feature ?lm
Detroit and
surrounding areas
Five Year Engagement s1z,¸¸z,o¸6 s¸,z6¸,¡6¡ Feature ?lm Detroit, Ann Arbor
Detention of the Dead s¸¸1,z¸¸ s1¸,,118 Feature ?lm Pontiac
AWOL s¡,¸;¡,,6o s1,8¸;,¡8¸ Feature ?lm
Ann Arbor, Detroit,
Ypsilanti
Northern Light s1oo,ooo s¡o,ooo Documentary (post) Farmington Hills
Sparkle s;,¡1o,z16 s¸,1o¡,¡¸¸ Feature ?lm
Detroit and
surrounding areas
Freaky Deaky s6,,z6,o;1 sz,86¡,ozo Feature ?lm
Detroit and
surrounding areas
Ghost Game s1,oz,,1z¸ s¡11,6¸o Video game Farmington Hills
Have a Little Faith s¸,6o,,¸,¸ sz,¸¸¸,,¡¸ Long form TV
Detroit and
surrounding areas
Dogman s¸8z,¸oo s1¸¸,1¡6 Feature ?lm Benzie County
Year-end Report to the Legislature / FY 2011 / 38
MEDC FY 2011
COMPLETED MICHIGAN FILM AND DIGITAL MEDIA
PRODUCTION INCENTIVES continued
Fiscal Year 2011 (10/01/2010–09/30/2011)
Project title
Total Michigan
spend (approved)
Incentive amount
(approved) Description Locations
Ben Hogan Lessons
Mobile App Game
s1,6,1oo s;8,¡¡o Interactive game Royal Oak
A DOT COM A?airs s1,1;¸,¸zz s¡,¸,;1, Feature ?lm
Benton Harbor,
St. Joseph
Actor° s1¸6,ooo s6z,¸zo Documentary (post) Farmington Hills
Mickey Matson & Te
Copperhead Conspiracy
s¸88,¡oo s16z,1z8 Feature ?lm
Ludington,
Manistee
Ariel & Zoey & Eli, Too,
Season ¸
s¡¸6,¸oo s1,1,6¡6 Television series Ann Arbor, Livonia
21 Approvals in 2011 $58,330,399 $24,265,184
Year-end Report to the Legislature / FY 2011 / 39
MEDC FY 2011
COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM
Te Community Development Block Grant (cono) program is a federal grant program utilizing funds received
from the U.S. Department of Housing and Urban Development. Funds are used to provide grants to eligible
counties, cities, villages and townships, usually with populations under ¸o,ooo, for economic development,
community development, and housing projects. Te Michigan Strategic Fund (rsr), in cooperation with the
MEDC, administers the economic development and community development portions of the program.
Te grant awards listed below represent projects for which the MSF Board authorized communities to
submit a full application for CDBG funding. At this stage of the process, a public hearing must be held to make
the community aware of the proposed project, a local authorizing resolution must be passed in support of the
project, and an environmental review must be completed, in accordance with the National Environmental
Policy Act of 1,6,. Once the application is submitted and reviewed for completeness and accuracy and all
required steps are completed, a grant agreement is prepared for all required signatures. It is important to note
that not all CDBG projects reach the grant agreement stage for various reasons.
CDBG GRANT AWARDS
Fiscal Year 2011 (10/01/2010–09/30/2011)
Pass-thru grantee County Project description
Approved
award amount
Lincoln Village Alcona
Grant increase: Downtown streetscape and street
improvements project (original amount: s6¸o,ooo)
s,z,zo¸
Fennville City Allegan
Grant increase: Water system improvement project
(original amount: s¸,8oo,ooo)
szoo,ooo
Alpena City Alpena Downtown façade improvements s;;,8,o
Central Lake Village and
Central Lake Township
Antrim
Central Lake Armor Express, Inc. dba Armor Express
machinery and equipment acquisition
s¡oo,ooo
Nashville Village Barry Downtown façade improvements s,6,66z
Watervliet City Berrien Downtown infrastructure improvements sz8;,ooo
Albion City Calhoun Downtown façade improvements sz;o,ooo
Athens Village Calhoun Downtown façade improvements s1,1,¸z8
Homer Village Calhoun Downtown façade improvements s¸86,z1,
Spring?eld City Calhoun Farm to Food—addition of commercial kitchen s1¸o,ooo
Boyne City Charlevoix Downtown façade improvements s181,¡z8
Boyne City Charlevoix
Dilsworth Hotel signature building acquisition and façade
improvements
s6oo,ooo
Cheboygan City Cheboygan
Grant increase: Great Lakes Tissue Company bankruptcy
proceedings additional legal fees
s¸o,ooo
Escanaba City Delta Downtown façade improvements s1;o,o8;
Gladstone City Delta Power plant blight elimination demolition project s¸;,,888
Bellevue City Eaton Farm to Food—replace pavilion structure sz1,,¸oo
Charlotte City Eaton
Spartan Motors Chassis, Inc. machinery and equipment
acquisition
s1,1zo,ooo
Eaton Rapids City Eaton
Grant increase: URV USA, LLC infrastructure project
(original amount: sz,zoo,ooo)
s1,ooo,ooo
Eaton Rapids City Eaton Mill Street Landing downtown improvement project s¸¸z,¸oo
Oneida Charter Township Eaton L&W Engineering machinery and equipment acquisition s¸oo,ooo
Year-end Report to the Legislature / FY 2011 / 40
MEDC FY 2011
CDBG GRANT AWARDS continued
Fiscal Year 2011 (10/01/2010–09/30/2011)
Pass-thru grantee County Project description
Approved
award amount
Beaverton Township Gladwin Modern Machinery CNC Machining Center acquisition s61,ooo
Ironwood City Gogebic Burton Industries building improvement project szoo,ooo
Breckenridge Village Gratiot Downtown infrastructure improvements s¸¸8,6¸¸
Breckenridge Village Gratiot Gratiot County Wind LLC infrastructure project sz¡o,ooo
Ithaca City Gratiot Downtown façade improvements s¸o¡,6¡o
Jonesville Village Hillsdale Public parking lot reconstruction and expansion s1;¸,ooo
Port Austin Village Huron Downtown façade improvements s,o,¸8o
Lake Odessa Village Ionia Farm to Food—construct four season building s¸8¡,8z,
Portland City Ionia Downtown façade improvements szoo,ooo
Hermatite Township Iron
Grant increase: Pine River Hardwoods, LLC saw mill
constructionirail spur improvement project (original
amount: s6oo,ooo)
s1¸o,¡oo
Comstock Charter
Township
Kalamazoo Bell’s Brewery, Inc. water and sewer upgrades szzo,ooo
Keweenaw County Keweenaw
Stamp sands (copper mills tailings) reuse implementation
feasibility study (bene?ts Baraga, Houghton and
Keweenaw counties)
sz¸,ooo
Baldwin Village Lake Wastewater treatment improvements s1,ooo,ooo
Lapeer City Lapeer Farm to Food—construct retractable walls for pavilion s11,8o¸
Lapeer City Lapeer Downtown infrastructure improvements s;¸6,1oo
Adrian City Lenawee Farm to Food—parking lot improvements sz8o,ooo
Bliss?eld Village Lenawee Cannery and auto repair blight elimination project s¡z,ooo
Hudson City Lenawee Downtown façade improvements s1,;,o6o
Hudson City Lenawee Downtown façade improvements s¸z1,,6o
Morenci City Lenawee Downtown façade improvements s16¡,ooo
Tecumseh City Lenawee GLOV Enterprises, LLC machinery and equipment s¸6o,ooo
Brighton City Livingston Mayday Building façade improvements s1o8,ooo
Ludington City Mason Downtown façade improvements s1¡z,,¸z
Coleman City Midland Downtown infrastructure improvements s¸¸¸,ooo
Howard City Village Montcalm Downtown infrastructure improvements s¡¸o,ooo
Egleston Township Muskegon Eagle Alloy, Inc. machinery and equipment acquisition s¸oo,ooo
Muskegon County Muskegon
Grant increase: Muskegon County Digital Divide
Investment project (additional equipment and tower
upgrades) (original amount: sz,z16,ooo)
szo,,¸,6
Rose City Ogemaw
Grant increase: Culvert improvements project
infrastructure (original amount: sz¡z,¸oo)
s¸6,¸;¸
Reed City Osceola
Grant increase: Flo-Pallet, Inc. machinery and equipment
project (original amount: s¸oo,ooo)
sz¸,ooo
Bagley Township Otsego
Cooper-Standard Automotive, Inc. hybrid geo-thermal
system project
s1z6,8oo
Year-end Report to the Legislature / FY 2011 / 41
MEDC FY 2011
CDBG GRANT AWARDS continued
Fiscal Year 2011 (10/01/2010–09/30/2011)
Pass-thru grantee County Project description
Approved
award amount
Gaylord City Otsego Farm to Food—construct retractable walls for pavilion s1;o,ooo
Gaylord City Otsego Downtown façade improvements s¡oo,ooo
Otsego County Otsego Aerospace diversi?cation feasibility study project s6o,ooo
Grand Haven City Ottawa Farm to Food—parking lot improvements s8¸,868
Grand Haven City Ottawa Downtown façade improvements s¸¸8,o18
Spring Lake Village Ottawa Downtown façade improvements szz¡,z¸¸
Spring Lake Village Ottawa Downtown infrastructure improvements sz;¡,¸¸1
Saginaw County Saginaw
Grant increase: Renewable energy park projectitransfer of
funds from Suniva, Inc. CDBG project (original amount:
s;,o¸¡,;oo)
s¡6¸,¸oo
Laingsburg City Shiawassee Downtown façade improvements s¸81,1z¡
Vernon Village Shiawassee Downtown infrastructure improvements s¸oo,ooo
Vernon Village Shiawassee Downtown building demolition and public park installation s1o8,¡z8
Constantine Village St. Joseph Downtown façade improvements s1¸¸,o¡¡
Sturgis City St. Joseph
Downtown façade improvements and signature building
acquisition
s16o,ooo
Caro City Tuscola Downtown infrastructure improvements s1¸¸,81¸
Millington Village Tuscola Downtown infrastructure improvements sz6z,¸oo
Bloomingdale Village Van Buren
Grant increase: Sewer rehabilitation project (original
amount: s¡;8,8oo)
s68,ooo
Bloomingdale Village Van Buren
Grant increase: Downtown parking lot improvements
project (original amount: sz¸8,88z)
s16,ooo
Decatur Village Van Buren Downtown infrastructure improvements s18o,ooo
South Haven City Van Buren Downtown infrastructure improvements s;¸o,ooo
South Haven City Van Buren Downtown façade improvements sz¡¸,6¡¡
Dexter Village Washtenaw DAPCO Industry site planningifeasibility study s1¸,z¸o
Total $19,411,210
*Please note that amendments to existing CDBG agreements are only reported when a grant is increased.
Year-end Report to the Legislature / FY 2011 / 42
MEDC FY 2011
MICHIGAN RENAISSANCE RECOVERY ZONE PROGRAM
Te Michigan Renaissance Zone Initiative was established in 1,,6 to foster economic development, industrial,
commercial, and residential improvements, prevent physical and infrastructure deterioration of de?ned areas,
and provide for the reuse of unproductive or abandoned industrial properties. Originally, the program created
nearly tax-free zones within regions for any business or resident presently in or moving into a zone for a period
up to 1¸ years, also known as Geographic Renaissance Zones. Today, this initiative consists of various types of
Renaissance Zone designations, including Michigan Strategic Fund (rsr) Designated Renaissance Zones that
speci?cally address project-driven designation requests, Agricultural Processing Renaissance Zones, Forest
Products Processing Renaissance Zones, and Renewable Energy Renaissance Zones. In all cases, the tax relief is
phased out in z¸ percent increments over the last three years of the zone designation.
Many of the original Geographic Renaissance Zones have begun to phase out, which caused concern for
companies with job and capital investment projects because they needed the zone bene?ts to complete those
projects. In zoo8, a legislative amendment allowed a portion of an already designated geographic zone to receive
a time extension or new subzone (provided the zone had less than 1o zones). Te MSF Board has the authority
to grant these new subzones and time extensions through December ¸1, zo11. Te zones are required to have a
job creation or capital investment to be eligible.
MICHIGAN RENAISSANCE ZONE ACTIVITY
Fiscal Year 2011 (10/01/2010–09/30/2011)
Meeting
date
Company or
Renaissance Zone Location County MSF Board action
1oiz;i1o Energetx Composites, LLC Holland
Charter
Twp.
Ottawa Renewable Energy Renaissance Zone:
New 1¸-year designation to begin
o1io1izo11 and end 1zi¸1izoz¸
1oiz;i1o City of Flint Renaissance Zone—
Time extension for Genesee
Packaging, Inc. project
Flint Genesee Geographic Renaissance Zone: Four-year
extension to begin o1io1izo11 and end
1zi¸1izo1¸
11i1;i1o Frontier Renewable Resources, LLC Kinross
Charter
Twp.
Chippewa Renewable Energy Renaissance Zone:
New 1¸-year designation to begin
o1io1izo11 and end 1zi¸1izoz¸
11i1;i1o North Country Renaissance Zonei
Township of Marenisco Subzone—
Revocation of Marenisco Hardwoods
and Manufacturing, Inc. project
Marenisco
Twp.
Gogebic Geographic Renaissance Zone:
Revocation of time extension due to
project not occurring as a result of
declining markets
11i1;i1o Berrien CountyiBenton Harbori
Benton Township Renaissance
Zone i Elisha Gray Enterprise Park
subzone—Whirlpool Corporation
project
Benton
Charter
Twp.
Berrien Geographic Renaissance Zone: 1z-year
time extension to begin o1io1izo11 and
end 1zi¸1izoz¸
11i1;i1o Berrien CountyiBenton Harbori
Benton Township Renaissance Zonei
Miller’s Pond subzone—Whirlpool
Corporation project
Benton
Harbor
Berrien Geographic Renaissance Zone: Six-year
time extension to begin o1io1izo11 and
end 1zi¸1izoz¸
11i1;i1o Berrien CountyiBenton Harbori
Benton Township Renaissance Zonei
Edgewater Redevelopment Area
subzone—Whirlpool Corporation
project
St. Joseph Berrien Geographic Renaissance Zone: 1z-year
time extension to begin o1io1izo11 and
end 1zi¸1izoz¸
Year-end Report to the Legislature / FY 2011 / 43
MEDC FY 2011
MICHIGAN RENAISSANCE ZONE ACTIVITY continued
Fiscal Year 2011 (10/01/2010–09/30/2011)
Meeting
date
Company or
Renaissance Zone Location County MSF Board action
1zio1i1o City of Detroit Renaissance Zonei
Lynch Road subzone—Detroit
Chassis project (amendment)
Detroit Wayne Geographic Renaissance Zone: Amend
previous time extension approval to add
a parcel number not originally included
1zio1i1o City of Flint Renaissance Zonei
New Great Lakes Medical Complex
subzone—Diplomat Specialty
Pharmacy LLC & IINN, Inc. (Insight
Institute of Neurosurgery and
Neuroscience) project
Flint Genesee Geographic Renaissance Zone: New 1¸-
year subzone to begin o1io1izo11 and
end 1zi¸1izoz¸
1zi1¸i1o Border to Border Renaissance
ZoneiCity of Coldwater subzone—
JMWingard, LLC project
Coldwater Branch Geographic Renaissance Zone: 1o-year
time extension to begin o1io1izo11 and
end 1zi¸1izoz1
1zi1¸i1o Mid-Michigan Economic Growth
Corridor Renaissance ZoneiLeRoy
Township subzone—Acme Pallet,
Inc. project
LeRoy
Twp.
Osceola
county
Geographic Renaissance Zone: Six-year
time extension to begin o1io1izo11 and
end 1zi1¸izozo
1zi1¸i1o Montcalm and Gratiot Counties
Renaissance ZoneiHoward Cityi
Pierson TownshipiReynolds
Township subzone—Northern Cable
& Automation, LLC (dba Flex-Cable)
project
Pierson
Twp.
Montcalm Geographic Renaissance Zone: Seven-
year time extension to begin o1io1izo11
and end 1zi¸1izo18
1zi1¸i1o City of Detroit Renaissance Zonei
SouthwestiDelRay subzone—Boasso
America Corporation project
Detroit Wayne Geographic Renaissance Zone: Seven-
year time extension to begin o1io1izo11
and end 1zi¸1izo18
1zi1¸i1o City of Detroit Renaissance Zonei
SouthwestiDelRay subzone—
Bridgewater Interiors, LLC project
Detroit Wayne Geographic Renaissance Zone: Seven-
year time extension to begin o1io1izo11
and end 1zi¸1izo18
1zi1¸i1o City of Detroit Renaissance Zonei
SouthwestiDelRay subzone—
Renaissance Global Logistics, LLC
project
Detroit Wayne Geographic Renaissance Zone: Nine-
year time extension to begin o1io1izo11
and end 1zi¸1izozo
1zi1¸i1o City of Detroit Renaissance Zonei
SouthwestiDelRay subzone—Te
John Johnson Company project
Detroit Wayne Geographic Renaissance Zone: Five-year
time extension to begin o1io1izo11 and
end 1zi¸1izo16
1zi1¸i1o Biofuels Industries Group Adrian Lenawee Renewable Energy Renaissance Zone
Revocation: Due to business closure and
noncompliance
o1iz6i11 Grid Logic Incorporated Lapeer
Twp.
Lapeer Renewable Energy Renaissance Zone:
New 15-year designation to begin
o1io1izo11 and end 1zi¸1izoz6
oziz¸i11 °Detroit Region Aerotropolis
Development Corporation: Cities
of Belleville, Romulus, Taylor, and
Ypsilanti, Charter Townships of
Van Buren and Ypsilanti, Huron
Township and Wayne County
Airport Authority
Various Washtenaw
iWayne
Designation of the Detroit Region
Aerotropolis Development Corporation
as a new Next Michigan Development
Corporation, e?ective immediately
Year-end Report to the Legislature / FY 2011 / 44
MEDC FY 2011
MICHIGAN RENAISSANCE ZONE ACTIVITY continued
Fiscal Year 2011 (10/01/2010–09/30/2011)
Meeting
date
Company or
Renaissance Zone Location County MSF Board action
o¸iz¸i11 Shoreline Fruit, LLC Acme Twp. Grand
Traverse
Agricultural Processing Renaissance
Zone: New 1¸-year designation to begin
o1io1izo11 and end 1zi¸1izoz6
o¡iz;i11 City of Saginaw Renaissance Zonei
Central Business District subzone—
SSP & Associates, Inc. project
Saginaw Saginaw Geographic Renaissance Zone: Seven-
year time extension to begin o1io1izo11
and end 1zi¸1izoz1
o¸iz¸i11 City of Lansing Renaissance Zonei
Knapps Centre subzone—George F
Eyde & Louis J Eyde Limited Family
Partnership project
Lansing Ingham Geographic Renaissance Zone: New 1¸-
year subzone to begin o1io1izo11 and
end 1zi¸1izoz6
o6izzi11 CityiCounty of Jackson Renaissance
ZoneiProduction Engineering
Subzone—Production Engineering,
Inc. project
Jackson Jackson Geographic Renaissance Zone: New
subzone designated in zoo8 reduced
from 1¸-years to 1¡-years due to non-
compliance—failure to retain required
number of employees, now ends on
1zi¸1izozz
o;iz;i11 No new projects
o8iz¡i11 No new projects
o,iz1i11 Van Buren County Renaissance
ZoneiCity of Hartford subzone—
AmHawk, LLC project
Hartford Van Buren Geographic Renaissance Zone:
Revocation of time extension due to
noncompliance
o,iz1i11 Montcalm and Gratiot County
Renaissance ZoneiCarson Cityi
BloomeriNorth Shade Township
subzone—Renaissance Power, L.C.
project
Carson
City
Montcalm Geographic Renaissance Zone: Tree-
year time extension to begin o1io1izo11
and end 1zi¸1izo18
*Next Michigan Development Corporation: In 2010, a package of bills was signed into law to provide incentives that encourage economic development
and investment, job creation and job retention, and ancillary economic growth delivered by what are called Next Michigan Development Corporations for
businesses engaged in various aspects of multimodal commerce, including movement of products, information, and services via air, roads, rail, or water.
Te package was originally known as the “”Aerotropolis”” legislation because nine municipalities in Wayne and Washtenaw counties near Detroit
Metropolitan Airport had already entered into an interlocal agreement that would allow them to make use of the proposal to employ a variety of
incentives in order to stimulate economic development close to the airport. Tese incentives include real and personal property tax abatements, tax
increment ?nance plans, and renaissance zones. Te Next Michigan Development Act allows the Michigan Strategic Fund to designate up to ?ve Next
Michigan Development Corporations.
Te ?rst Next Michigan Development Corporation was designated by the MSF Board in February 2011. Te Detroit Regional Aerotropolis
Development Corporation includes eight communities in Wayne and Washtenaw counties as well as the Wayne County Airport Authority.
Year-end Report to the Legislature / FY 2011 / 45
MEDC FY 2011
MICHIGAN TOOL & DIE RENAISSANCE
RECOVERY ZONE PROGRAM
Michigan tool and die companies wrestle with economic challenges ranging from foreign competition to
decreased ordering and cash ?ow problems as the automotive industry adjusts to its new z1st century realities.
Without assistance, many of those companies would struggle to stay in business. Te Tool and Die Renaissance
Recovery Zone program helps Michigan’s tool and die industry to reinvent and innovate. Te program provides
tax free status to companies willing to work collaboratively with other in-state tool and die businesses. Te
Recovery Zone is unique because it is industry-based and company-speci?c collaborative of numerous
companies coming together to receive the renaissance zone bene?t. A Recovery Zone may have a duration of
a renaissance zone status for a period of not less than ?ve years and not more than 1¸ years. Te tax relief is
phased out in z¸ percent increments over the last three years of the zone designation.
TOOL & DIE RECOVERY ZONE ACTIVITY
Fiscal Year 2011 (10/01/2010–09/30/2011)
Meeting
date
Company or
Renaissance Zone Location County MSF Board action
1oiz;i1o Vicount Industries, Inc. Farmington
Hills
Oakland Add nine additional years for a total of 1¸
years—end date is now 1zi¸1izozz, member of
Global Tool Alliance, LLC
1oiz;i1o LS Mold, Inc. Holland Allegan Add six additional years for a total of 1z years—
end date is now 1zi¸1izo16, member of Great
Lakes Tool & Die Recovery Zone
1oiz;i1o STM Manufacturing, Inc. Holland Allegan Add six additional years for a total of 1z years—
end date is now 1zi1¸izo1,, member of Great
Lakes Tool & Die Recovery Zone
1oiz;i1o Global Engineering, Inc. Shelby Charter
Twp.
Macomb Join Global Tooling Alliance for ?ve years to
begin o1io1izo11 and end 1zi¸1izo1¸
11i1;i1o Advanced Integrated
Tooling Systems
Chester?eld
Charter Twp.
Macomb Join Tird Coast Tooling Alliance for ?ve years
to begin o1io1izo11 and end 1zi¸1izo1¸
11i1;i1o Mistequay-ISG LLC Saginaw
Charter Twp.
Saginaw Join Tird Coast Tooling Alliance for ?ve years
to begin o1io1izo11 and end 1zi¸1izo1¸
1zio1i1o Carroll Tool & Die Co. Macomb Twp. Macomb Add ?ve additional years for a total of 1o years—
end date is now 1zi¸1izo1,, member of Tird
Coast Tooling Alliance
1zio1i1o CDM Machine Co., Inc. Redford
Charter Twp.
Macomb Join Eastern Michigan Tool & Die Collaborative
for 1o years to begin o1io1izo11 and end
1zi¸1izozo
1zio1i1o Talent Industries, Inc. Redford
Charter Twp.
Wayne Add ?ve additional years for a total of 1¸ years—
end date is now 1zi¸1izozo, member of Eastern
Michigan Tool & Die Collaborative
1zi1¸i1o Michigan International
Tooling Alliance
New Recovery Zone comprised of 1; companies
identi?ed below with various years of the bene?t
granted
1zi1¸i1o Arbor Gage & Tooling,
Inc.
Grand Rapids Kent Participant in Michigan International Tooling
Alliance to begin o1io1izo11 and end
1zi¸1izo1¸
1zi1¸i1o Carbide Form Master,
Incorporated
Spring?eld
Charter Twp.
Oakland Participant in Michigan International Tooling
Alliance to begin o1io1izo11 and end
1zi¸1izo1¸
Year-end Report to the Legislature / FY 2011 / 46
MEDC FY 2011
TOOL & DIE RECOVERY ZONE ACTIVITY continued
Fiscal Year 2011 (10/01/2010–09/30/2011)
Meeting
date
Company or
Renaissance Zone Location County MSF Board action
1zi1¸i1o Hommel-Etamic America
Corporation
Rochester
Hills
Oakland Participant in Michigan International Tooling
Alliance to begin o1io1izo11 and end
1zi¸1izo1¸
1zi1¸i1o I & G Tool Company, Inc. New Baltimore Macomb Participant in Michigan International Tooling
Alliance to begin o1io1izo11 and end
1zi¸1izo1¸
1zi1¸i1o KEO Cutters, Inc. Warren Macomb Participant in Michigan International Tooling
Alliance to begin o1io1izo11 and end
1zi¸1izo1¸
1zi1¸i1o M. Curry Corporation Bridgeport
Twp.
Saginaw Participant in Michigan International Tooling
Alliance to begin o1io1izo11 and end
1zi¸1izo1¸
1zi1¸i1o P.C.S. Company Fraser Macomb Participant in Michigan International Tooling
Alliance to begin o1io1izo11 and end
1zi¸1izo1¸
1zi1¸i1o PT Tech Stamping, Inc. Fraser Macomb Participant in Michigan International Tooling
Alliance to begin o1io1izo11 and end
1zi¸1izo1¸
1zi1¸i1o Praet Tool & Engineering,
Inc.
Macomb Twp. Macomb Participant in Michigan International Tooling
Alliance to begin o1io1izo11 and end
1zi¸1izo1¸
1zi1¸i1o Product & Tooling
Technologies, Inc.
Fraser Macomb Participant in Michigan International Tooling
Alliance to begin o1io1izo11 and end
1zi¸1izo1¸
1zi1¸i1o Troy Industries, Inc. Shelby Charter
Twp.
Macomb Participant in Michigan International Tooling
Alliance to begin o1io1izo11 and end
1zi¸1izo1¸
1zi1¸i1o Fischer Tool & Die
Corporation
Bedford
Township
Monroe Participant in Michigan International Tooling
Alliance to begin o1io1izo11 and end
1zi¸1izo1;
1zi1¸i1o Ecco Tool Co., Inc. Novi Oakland Participant in Michigan International Tooling
Alliance to begin o1io1izo11 and end
1zi¸1izo18
1zi1¸i1o Centerless Rebuilders, Inc. New Haven Macomb Participant in Michigan International Tooling
Alliance to begin o1io1izo11 and end
1zi¸1izozo
1zi1¸i1o Cole’s Machine, Inc. Davison Genesee Participant in Michigan International Tooling
Alliance to begin o1io1izo11 and end
1zi¸1izozo
1zi1¸i1o Fullerton Tool Company,
Inc.
Saginaw Saginaw Participant in Michigan International Tooling
Alliance to begin o1io1izo11 and end
1zi¸1izozo
1zi1¸i1o Innovative Mold, Inc. Washington
Charter Twp.
Macomb Participant in Michigan International Tooling
Alliance to begin o1io1izo11 and end
1zi¸1izozo
Year-end Report to the Legislature / FY 2011 / 47
MEDC FY 2011
TOOL & DIE RECOVERY ZONE ACTIVITY continued
Fiscal Year 2011 (10/01/2010–09/30/2011)
Meeting
date
Company or
Renaissance Zone Location County MSF Board action
1zi1¸i1o Metal Processors, Inc. Lincoln
Charter Twp.
Berrien Revocation of existing Tool & Die Recovery
Zone property due to company closure, former
member of Berrien Tooling Coalition
1zi1¸i1o C.H. Industries, Inc. Shelby Charter
Twp.
Macomb Join Michigan Coast to Coast Tool & Die
Collaborative for ?ve years to begin o1io1izo11
and end 1zi¸1izo1¸
1zi1¸i1o DS Mold, Inc. Belding Ionia Allow entire company property in the city of
Belding to receive the Tool & Die bene?t to
begin o1io1izo11 and end 1zi¸1izozo, member
of Central Michigan Collaborative
1zi1¸i1o Proper Group
International, Inc.
Warren Macomb Join Eastern Michigan Tool & Die Collaborative
for ?ve years to begin o1io1izo11 and end
1zi¸1izo1¸
1zi1¸i1o Tranor Industries, L.L.C. Detroit Wayne Join Michigan Coast to Coast Tool & Die
Collaborative for 11 years to begin o1io1izo11
and end 1zi¸1izoz1
1zi1¸i1o BuhlerPrince, Inc. Holland Ottawa Join Strategic Tool Solutions Collaborative for 1z
years to begin o1io1izo11 and end 1zi¸1izozz
1zi1¸i1o International Mold
Corporation
Clinton
Charter Twp.
Macomb Join Strategic Tool Solutions Collaborative for 1¡
years to begin o1io1izo11 and end 1zi¸1izoz¡
Year-end Report to the Legislature / FY 2011 / 48
MEDC FY 2011
BUSINESS ATTRACTION AND RETENTION
In addition to assisting companies with a full complement of ?nancing programs and economic development
incentives, the MEDC provides many other programs and services to businesses. Te MEDC’s Retention
and Attraction Team acts as the agency’s sales and marketing divisions for Michigan companies. Business
development managers (nors) deliver business and retention services based on speci?c company needs. Te
BDMs are regionally assigned. Contact with companies occurs through in-person visits, usually in partnership
with a local economic development partner. In general BDMs meet with a company once a year. Additional
meetings happen throughout the year when the company is considering an expansion or retention project.
BDMs participate in three types of company visits:
• Retention—yearly “check-up” meeting designed to learn how the company is doing and to provide
information on any new state programs,
• Project—related to a speci?c retention or expansion project that may result in the MEDC o?ering the
company an incentive package to secure their investment or retain the company, and
• Customer support—providing support to a very large corporation where an ongoing relationship is required
or visits with other companies when there is a concern or issue that is not project related.
Te MEDC provides services to complement the state’s business retention and attraction e?orts. Some of these
services include workers’ compensation cost control that provides employers with assistance in designing and
implementing strategies to reduce workers’ compensation costs, Michigan Business Ombudsman o?ce that
provides impartial, independent, and con?dential assistance in resolving disputes and investigating business
complaints against state government agencies, business operating cost estimating that o?ers customized
estimates to new or expanding businesses by analyzing company-speci?c data to estimate the impact of a ?rm’s
expansion on its business costs, assisting companies in ?nding property for expansions, and a suite of talent
enhancement services to ?rms that need to ?nd the right people for their business.
VISIT AND BUSINESS SERVICE ACTIVITIES
Fiscal Year 2011 (10/01/2010–09/30/2011)
No. of Occurrences
Visit activities
Michigan retention visits 1,6¸¸
Michigan customer support visits ¡¸1
Michigan project visits ¸z,
International visits ¸8
Visits (other) z;6
Total visits 2,949
Business service provided to MEDC customers
Assistance—community 6z
Assistance—general ¡¸
Assistance—technical 1o
Incentive estimating ¡1,
Ombudsman 1¡z
Other services 6;
Referral ¸;
Research 1;¸
Site selection ¡8
Talent acquisition ,
Workers Compensation cost control 61
Total 1,071
Year-end Report to the Legislature / FY 2011 / 49
MEDC FY 2011
INTERNATIONAL ATTRACTION AND RETENTION
Along with a comprehensive retention and growth strategy, the MEDC works aggressively to cultivate and
maintain relationships with international companies looking to establish or strengthen their presence in North
America. Michigan o?ers numerous strengths to global companies: a highly skilled and highly productive
workforce, manufacturing infrastructure, strong research and development universities, and a competitive
business climate. Foreign direct investment in Michigan is continuing to grow. Tere are over ¡,;oo divisions,
a?liates, and subsidiaries in Michigan representing over ¡o countries and encompassing all industry and service
sectors. Japan, Germany, the U.K., and Canada lead in the number of international operations in Michigan. Some
of the major international companies in Michigan include Toyota Motor Company, Nissan, Hyundai, Robert
Bosch, Magna, LG Chem, AVL, Valeo, Tata, Fiat, Inalfa, Swedish Biogas, URV, BAE Systems, and many more.
INTERNATIONAL ATTRACTION AND RETENTION
Fiscal Year 2011 (10/01/2010–09/30/2011)
Company County
Opportunity
industry/project
Projected
new
investment
Projected
new
employees
Projected
retained
jobs
Parent
country
Geislinger
Corporation
Calhoun automotiveijob training s¡¡¸,¸o8 ¸ 8 Austria
Seissenschmidt
Corporation Precision
Components
Iosco automotiveijob training s¡o6,ooo z 16 Germany
Michigan Automotive
Compressor, Inc.
Jackson automotiveiretention s;z,ooo,ooo o ¸6z Japan
Dematic Corporation Kent manufacturingiexpansion s1o,,o1,ooo ¸o¸ o Germany
Hi-Lex Controls,
Incorporated
Lenawee automotive new press s8¡o,ooo ¸ o Japan
Ceratizit USA, Inc. Macomb automotiveibrown?eld s1¸,,¸o,ooo ;¸ 1¡o Austria
GETRAG
Corporation
Macomb
R&Diengineeringijob
training
s¸zo,ooo o ¸ Germany
Benteler Automotive
Corporation
Oakland
automotiveirelocation of
national headquarters
s¸,,66,¸oo z¸o o Germany
Blaupunkt Antenna
Systems USA, Inc.
Oakland
automotive R&Di
testingiNorth American
headquarters and R&D
center
s¡,;z;,ooo 1o¡ o Germany
Denso International
America, Inc.
Oakland automotiveijob training s,,¡¸o,ooo o zoo Japan
Dokka Fasteners,
Incorporated
Oakland
alternative energy-windi
new facility
szo,¸,6,ozz ,o o Switzerland
Kenersys Americas,
LLC
Oakland
alternative energy-windi
new project
s1o,z¡z,ooo 16o o Germany
KOSTAL Kontakt
Systeme, Inc.
Oakland
alternative energy-solari
connector production
facility, applications in
solar, battery and electric
vehicle industries
sz;,1¸6,ooo z¡; o Germany
Magna Steyr North
America
Oakland
automotiveiengineering
services contract
s;6¸,ooo zoo o Austria
Year-end Report to the Legislature / FY 2011 / 50
MEDC FY 2011
INTERNATIONAL ATTRACTION AND RETENTION continued
Fiscal Year 2011 (10/01/2010–09/30/2011)
Company County
Opportunity
industry/project
Projected
new
investment
Projected
new
employees
Projected
retained
jobs
Parent
country
Otto Bock
Polyurethane
Technology, Inc.
Oakland
automotiveitech center
and production facility
for polyurethane engine
dampening components
s1¸,¸¡;,ooo ,8 o Germany
P3-North America,
Inc.
Oakland
information technologyi
P¸ expansion
s¸¸z,1¸o 6¸ o Germany
TyssenKrupp
System Engineering,
Incorporated
Oakland
manufacturing-advancedi
job training
so o z8 Germany
Weber Automotive
Corporation
Oakland
automotiveimanufacturing
facility for engine
components
sz¡,8¡;,ooo z8o o Germany
American Broach and
Machine Company
Washtenaw
machineryimachine toolsi
R&D center
sz¸,ooo,ooo ¡¸ o China
Chemetall U.S., Inc. Wayne
chemicalsiconsolidate
in Monroe
szo,;¸o,ooo o ;¡ Germany
Mercedes-Benz
Hybrid, LLC
Wayne automotiveijob training so o 1oo Germany
Total $260,178,960 2,127 1,131
Year-end Report to the Legislature / FY 2011 / 51
MEDC FY 2011
TALENT ENHANCEMENT
Te MEDC established a talent enhancement unit in early zo11. Te goals of the MEDC talent enhancement
team are to attract, retain and develop talent to support business attraction, economic gardening and
entrepreneurship. Tey develop and implement key statewide programs, support local talent partners with a
variety of tools and resources, and help employers ?nd talent. Tey partner closely with the MichiganWorks!
agencies, community colleges, local economic development organizations, and many other key entities to help
reinvent Michigan. Talent enhancement’s key values include customer responsiveness, creativity, e?ciency,
teamwork, collaboration, and having an action orientation.
Te talent enhancement team develops local talent enhancement capability and capacity, provides talent
enhancement support to employers, connects job seekers to opportunities, and helps support attraction
projects.
Te talent enhancement team hosted its inaugural LiveWorkDetroit day on March z¸. LiveWorkDetroit!
showcases Detroit as the place for Michigan’s college graduates and young professionals to live and work. Te
day involved a tour of the best places to live, work and hang out in Detroit. Along the way, students had an
opportunity to meet the entrepreneurs and professionals who call the city home.
Te MEDC began a statewide roll-out of the Michigan Shifting Gears program—a training program to teach
seasoned business professionals how to take the skills and talent developed in corporate settings and reframe
and adapt them to provide value to small businesses. Te program ?rst launched in zoo, in partnership with
Ann Arbor SPARK.
Te MEDC also launched a new talent portal on its website designed to help skilled professionals connect
with employers. Trough the MEDC job portal, located at www.hiremi.org, employers can register to post
openings and work closely with the MEDC’s talent acquisition team to devise strategies to meet their talent
needs. Companies posting on the job portal also will have access to the MEDC’s other talent acquisition
services, including targeted marketing and social media outreach, career events, assistance with identifying
relocation services, and a triage approach to addressing hard-to-?ll positions and hiring challenges. Te portal
also allows job seekers to search for positions around the state, create pro?les, and add their resumes to the
talent database. It is currently being used in concert with the Michigan Talent Bank. Both systems are working
together to e?ectively connect Michigan’s businesses and job-seekers. Te goal for the future includes designing
one job portal system that combines the strengths of both of the state’s current operating systems, to create a
world-class, e?cient jobs resource.
Among the many creative tools the talent enhancement team is working on to assist job creators and job
seekers, they are partnering with universities and community colleges to discuss ways to increase capacity
for high-demand skills. No other state is as aggressively seeking to quantify talent information, partner with
universities and community colleges, and to implement rapid change across the educational spectrum. Tey
also are working closely with the Michigan Department of Education on a number of exciting initiatives.
Michigan has an opportunity to create a ground-breaking, innovative approach to talent development.
Looking forward to ?scal year zo1z, there are many talent issues that need to be addressed by the creation of an
overall strategy that ties together all pieces of the “talent pipeline.”
Year-end Report to the Legislature / FY 2011 / 52
MEDC FY 2011
URBAN ECONOMIC DEVELOPMENT
A priority of the MEDC is to revitalize Michigan’s urban centers. Te MEDC established an Urban Economic
Development unit in January zo11. It is charged with leading e?orts to foster an entrepreneurial atmosphere
that will support job growth, develop and retain young talent, strengthen training and business development
services and improve access to capital. Immediate areas of focus include Detroit, Pontiac, Flint, Saginaw and
Benton Harbor. Te unit also collaborates on job creation and retention projects. Te MEDC’s urban approach
includes a focus on supporting business sustainability in the small business segment that the MEDC would not
normally be engaged with (e.g., retail, food, garment, etc.).
Examples of recent urban projects supported by the MEDC include:
• MEDC provided s1¸o,ooo matched support with the New Economy Initiative (NEI) for the Shifting
Gears program to place ?ve mid-level executives in key positions within City of Detroit government to
a?ect positive change and e?ciencies in areas such as community relations, ?nanceipurchasing, ?scal
management–z1st century, technology, and artsiculture. Combined funding provides for one year
placements.
• MEDC provided s¸o,ooo in support of the Detroit Economic Growth Corporation (ovoc) green grocer
initiative providing technical, marketing, and distribution support to the 8o independent grocers within
the city. In addition, the MEDC provided assistance to the city’s only African-American-owned grocer,
Metro Foodland, to open a farmer’s market stand to increase access to locally grown fresh produce to the
community.
Te MEDC also introduced a kitchen incubator pilot, which provided access to a licensed commercial
kitchen to several food processors who had a de?ned product but were lacking in expertise to access major
distribution points and other technical points in running a business. A team of professionals from the Michigan
Small Business & Technology Development Center (MI-SBTDC), Center for Empowerment and Economic
Development (CEED), Micro Lenders, MSU Product Center, and MEDC sta? provided assistance with business
plan development, ?nancials, and product distribution.
Te owner of the Ice Cream Place, a participant in the program, was a very small operator in providing
excellent varieties of homemade ice cream from a home based operation driven by individual and event orders.
As a result of this pilot, the product has been picked up for distribution in Whole Foods and Metro Foodland.
Te business has received product packaging assistance from the MSU Product Center, and incorporated bar
coding to manage inventory and sales. In addition, the company bene?ted from services provided by a Shifting
Gears graduate to help with the business model.
Te Snyder administration has created an O?ce of Urban Initiatives to proactively address issues in Detroit
and the rest of Michigan’s major urban centers. In addition to Detroit, they will look to establish o?ces in Grand
Rapids and in the Flint and Saginaw areas. Te o?ce also will work to support entrepreneurs as they revitalize
Michigan cities one neighborhood at a time. Te MEDC’s Urban Economic Development team will work in
partnership with the O?ce of Urban Initiatives to achieve these goals.
Year-end Report to the Legislature / FY 2011 / 53
MEDC FY 2011
PLACEMAKING/COMMUNITY DEVELOPMENT
Te MEDC’s Community Assistance Team (CATeam) is dedicated to helping all Michigan communities both
urban and rural. Te team serves as the community’s ?rst point of contact within state government. Contact
with communities, at a minimum, occurs annually through in-person visits, while project scoping and technical
assistance visits are provided as requested. Te CATeam strives to strengthen communities by ensuring access
to economic and community development services and programs that cultivate sustainable projects through
placemaking. Tis is accomplished by:
• Serving the individual needs of communities seeking assistance with community development
• Working in partnership with other organizations to design programs that foster a sense of place
• Facilitating collaborative e?orts with other state agencies around placemaking
• Launching a statewide Redevelopment Ready Communities` Program
Te MEDC, in partnership with the Michigan State Housing Authority (MSHDA), acquired the Redevelopment
Ready Communities` (RRC) Program from the Michigan Suburbs Alliance. RRC will support Michigan
communities to become development ready, competitive and “open for business.” RRC is a strategic tool
that leads change in the development culture for communities, building con?dence among businesses and
developers by encouraging communities to adopt innovative strategies and e?cient development processes.
Te CATeam is regionally assigned and has built partnerships within MEDC, neighborhood organizations
and regional agencies to assist the development or redevelopment of Michigan’s downtowns. Te team also
provides services to complement MSHDA, the Michigan Department of Transportation, Michigan Department
of Agriculture and Rural Development, Michigan Department of Natural Resources, and Michigan Department
of Environmental Quality’s placemaking e?orts.
TECHNICAL ASSISTANCE AND PROJECT FINANCIAL ASSISTANCE
Fiscal Year 2011 (10/01/2010–09/30/2011)
Technical Assistance No. of Occurrences
Community visitsiproject scoping meetings
Total visits 214
Trainings
Community Development Block Grant
Gaylord z¸
South Haven ¸z
Marquette ¡¸
Lansing ¸¡
Community Assistance Team
Ann Arbor z1
Traverse City z¡
Kalamazoo ¡¸
Marquette ¸6
Total attendees 260
CATeam Project Financial Assistance
Act 381 Work Plans for Tax Increment Financing z6 projects, s6¡,8¡¸,8;z
Brown?eld MBT Credits 86 projects, s1oo,8o,,oo¡
Community Development Block Grants—community development projects ¡, projects, s1z,¡68,68,
Year-end Report to the Legislature / FY 2011 / 54
MEDC FY 2011
TRIBAL BUSINESS DEVELOPMENT
Te MEDC launched its Tribal Business Development e?orts in late zo1o to encourage Michigan’s 1z federally
recognized Indian tribes to expand their business portfolios in Michigan. Te goal of the Tribal Business
Development unit is to be a resource to Michigan’s 1z federally recognized Indian tribes in achieving sustainable
tribal economies through business diversi?cation, and to build state-tribal relationships that foster business
development beyond gaming.
Five of Michigan’s tribes are located in the Upper Peninsula: Bay Mills Indian Community, Hannahville
Potawatomi Indian Community, Keweenaw Bay Indian Community, Lac Vieux Desert Band of Lake Superior
Chippewa Indians, and the Sault Ste. Marie Tribe of Chippewa Indians. Te remaining seven tribes are located
in the Lower Peninsula: Grand Traverse Band of Ottawa and Chippewa Indians, Match-E-Be-Nash-She-Wish
Band of Pottawatomi Indians (Gun Lake Tribe), Little River Band of Ottawa Indians, Little Traverse Bay Band of
Odawa Indians, Nottawaseppi Huron Band of Potawatomi Indians, Pokagon Band of Potawatomi Indians, and
the Saginaw Chippewa Indian Tribe.
Tribes are unique but have common economic interest in job retentionicreation, business development,
infrastructure enhancement, alternative energy, entrepreneurship programs, and contracting opportunities.
Fiscal year zo11 has been focused on developing relationships and strategic partners that further tribal business
development, identifying federal, state, local and other tribal business and ?nance resources, coordination
and collaboration of resources, encouraging tribes to adopt proven economic strategies and business models
that have succeeded in Indian country, and providing technical assistance for specialized legal, ?nancial and
business services required for tribal business development.
Year-end Report to the Legislature / FY 2011 / 55
MEDC FY 2011
MICHIGAN COUNCIL FOR ARTS AND CULTURAL AFFAIRS
Te Michigan Council for Arts and Cultural A?airs (rc»c») serves as the state agency that administers
matching grants and appropriations, facilitates communication networks, and develops funding resources
for arts and cultural activities. Te zo11 grantees of MCACA grants reported over 11 million individuals—
including over ?ve million youth—bene?tted from MCACA grants. Te grantees also report contracting with
¡¸,¡,¸ Michigan artists.
Not re?ected in the direct numbers summarized below are the grants made with MCACA monies through
regranting agencies and through the Touring Arts program, which is administered for MCACA by the Michigan
Humanities Council:
Touring Arts: 1o1 grants awarded totaling s¡¸,ooo
Regional Regranting: 16o awards totaling s¸6,,¸1z
Terefore, funds appropriated for MCACA in ?scal year zo11 resulted in 6o6 grants being made across the state
for arts and cultural activities.
MCACA GRANTS
Fiscal Year 2011 (10/01/2010–09/30/2011)
Grant type
Number of
awards
Individuals
bene?ting Grant amount Cash and overall match
Bus grants 11o 1¸,¸;1 s¸,,z1¸ s1z1,¡;, szo8,1¡z
New leaders program 1¸ ;,1¡¡ s¸1,8z8 s¸;,8¡8 s8,,1oz
Operational and project
support
1;8 8,o1¸,¡;; s1,¡¸8,6¸o s1,¸,¸¸z,¡1z szoo,¡¡8,;;;
Regional Regranting
Mini-grant Program
¸8 ¸61,o18 s¡,¸,¡6z sz,¸o¡,6;¸ s¸,¸¡;,;68
Services to the ?eld 6 z,¡¸6,o;1 s¸z6,¸18 s;,6oz,z¸; s;,61¸,¸81
Total 235 11,033,281 $2,349,673 $203,798,651 $211,909,170
Year-end Report to the Legislature / FY 2011 / 56
MEDC FY 2011
MICHIGAN STRATEGIC FUND
MICHIGAN STRATEGIC FUND EXPENDITURES*
Fiscal Year 2011 (10/01/2010–09/30/2011)
Programs
State
FTE
State
expenditures
Corporate
expenditures
Total
expenditures
Business Development and Attraction ¸o.o s¡,,,o,¸z6 s¸,¸1¸,,;¸ s8,¸o6,¸o1
Business Support (includes CDBG, EDJT and
z1st Century Jobs Fund Administration)
z¸.o s8,o6;,88¸ sz,z¸,,ooz s1o,¸z6,88;
Michigan Defense Center z.o sz,¸1;,z,¡ sz,¸1;,z,¡
Film O?ce ¸.o s;1z,z¡, s;1z,z¡,
Marketing and communications (includes Travel Michigan,
21st Century Jobs Fund and Michigan promotion programs)
z¸.o sz6,o¸¡,1,o s;,¡o,,¡,¸ s¸¸,¡¡¸,68¸
Other (administration, compliance, and non-program) ¸¸.o s6,¡1;,,¸o s¸,¡1¸,6o¡ s11,8¸¸,¸¸¡
Sub-total programs 118.0 $48,739,894 $18,400,076 $67,139,970
GRANTS AND OTHER PROGRAMS
z1st Century Jobs Investment Program
(includes loans and investments)
sz6,¸¸8,zoz sz6,¸¸8,zoz
Centers of Energy Excellence s1¸,8z1,zz6 s1¸,8z1,zz6
Michigan Supplier Diversi?cation—collateral program s1¸,6,,,zoo s1¸,6,,,zoo
Choose Michigan Loan Fund s;,ooo,ooo s;,ooo,ooo
Community Development Block (cono) s6¡,,;1,6,; s6¡,,;1,6,;
Closing Fund s¸,¡¸8,,16 s¸,¡¸8,,16
Detroit Institute of Arts s1o,ooo,ooo s1o,ooo,ooo
Growth Business Fund s¡,¡z,,¸oo s¡,¡z,,¸oo
Alternative energy programs (Battery Alliance) s1,z¸¸,o¸1 s1,z¸¸,o¸1
Michigan Manufacturing Technology Center°° sz,ooo,ooo sz,ooo,ooo
SBTDC Emerging Technology (company support) s1,¡oo,ooo sz,8¸8,¸¸¸ s¡,z¸8,¸¸¸
Federal grant—Flint Biogas and Biofuels s,¡z,86¸ s,¡z,86¸
Follow-on funds sz,¸¸1,;z¸ sz,¸¸1,;z¸
Research studies s¸,,,¸1¸ s¸,,,¸1¸
MBSii Wave ¸ and Enterprise Permitting and System
Consolidation
s8¸o,18, s1,8,,,¸o; sz,;¡,,6,6
2nd Tier Service Partner and other competitions s;;;,z81 s;;;,z81
Urban and rural economic development projects s¡,¡,z¡o s¡,¡,z¡o
Michigan Council for Arts and Cultural A?airs sz,¸8¡,8¸o sz,¸8¡,8¸o
Michigan Core Communities Fund s¸,¸¸6,o6o s¸,¸¸6,o6o
Business incubators s8;6,¸8, s8;6,¸8,
Economic Development Job Training s¡,88,,¸¸1 s¡,88,,¸¸1
Miscellaneous s1;8,¡68 s1;8,¡68
Sub-total grants $150,007,144 $23,025,399 $173,032,543
Total programs and grants $198,747,038 $41,425,475 $240,172,513
* Cash and accrued expenditures made during ?scal year 2011, including payments against prior year encumbrances and work projects.
** Grants made to leverage federal grants.
Year-end Report to the Legislature / FY 2011 / 57
MEDC FY 2011
TRAVEL MICHIGAN
FISCAL YEAR 2011 (10/01/2010–09/30/2011)
Pure Michigan Marketing Campaign
Te Pure Michigan campaign was recognized as a top advertising campaign by the Detroit advertising
community in December zo1o. Te campaign was honored with the “Best of Show” award D Show, an annual
event celebrating the breadth of ideas, depth of talent and craft of the advertising world. Pure Michigan also
was recognized by the Advertising Research Foundation in March zo11. Te campaign won a prestigious David
Ogilvy Award for Excellence in Advertising Research. Pure Michigan’s advertising agency, McCann Erickson
Detroit, shared honors with its media arm, Universal McCann, and research partner Longwoods International.
Te David Ogilvy Awards honor extraordinary and creative use of research in the development of successful
advertising campaigns. Tese awards join an already crowded Pure Michigan trophy case of nine Mercury
Awards, including Best State Tourism Advertising Campaign, Best State Tourism Television Commercials and
Best State Tourism Radio Commercials, along with an accolade from Forbes magazine as one of the 1o best
tourism campaigns of all-time.
In August zo11, the National Council of State Tourism Directors (×cs
) named Michigan’s GeorgeZimmermann the State Tourism Director of the Year for zo11. Te NCSTD, an a?liate of the U.S. Travel
Association, has recognized a State Tourism Director of the Year each year since 1,;o to honor a tourism
director that has clearly in?uenced the obvious and measurable improvement of a state or territory’s ‘travel and
tourism pro?le’ with their leadership.
Due to reduced funds, the zo1o fall Pure Michigan advertising campaign was canceled for the ?rst time
since zoo¸. However, legislation signed into law in December zo1o provided s1o million of the s;¸ million
appropriated for the z1st Century Job Trust Fund for ?scal year zo11 to be used for the promotion of tourism
in Michigan. Funding the Pure Michigan campaign was highlighted in Governor Rick Snyder’s zo11 State of
the State Address. Legislation was later signed into law that amended the Michigan Strategic Fund (rsr) Act
to add the promotion of tourism in Michigan to the authorized uses of MSF money and increased the amount
of money from the z1st Century Jobs Trust Fund that may be spent for tourism promotion in ?scal year zo11
from s1o million to szo million. Te bill also speci?ed that the promotion of tourism in the state is an ongoing
purpose of the z1st Century Jobs Trust Fund, which will permit the MSF Board in future years to allocate funds
from z1st Century Jobs Trust Fund appropriations to tourism promotion. Tis additional funding was critical
to maintaining the momentum generated by recent Pure Michigan campaigns. It covered general marketing
activity, a regional winter advertising buy and a national cable springisummer buy as well as regional springi
summer and fall buys.
Tere were z1 new commercials produced in ?scal year zo11, including partner ads (seven television,
1¡ radio). Regional markets for ?scal year zo11 (Travel Michigan and partner) included:
Since its launch in zoo6, the award-winning Pure Michigan campaign has attracted seven million new, out-of-
state visitors to the Great Lakes state, visitors who spent sz billion at Michigan businesses and paid s1¸8 million
in Michigan taxes, primarily sales tax. Te campaign generates s¸.z, in tax revenue for the state for each dollar
spent on Pure Michigan advertising.
Battle Creek, MI
Bay City, MI
Chicago, IL
Cincinnati, OH
Cleveland, OH
Columbus, OH
Dayton, OH
Detroit, MI
Flint, MI
Ft. Wayne, IN
Grand Rapids, MI
Green Bay, WI
Indianapolis, IN
Kalamazoo, MI
Lansing, MI
Milwaukee, WI
Saginaw, MI
South Bend, IN
Southern Ontario
St. Louis, MO
Toledo, OH
Traverse City, MI
Year-end Report to the Legislature / FY 2011 / 58
MEDC FY 2011
Travel Web Activity on www.michigan.org
Tere were 8., million web visits in ?scal year zo11. Tis compares to 8.8 million visits last year, an increase of
1.¡ percent over last year.
Note: Te reason for the discrepancy in 2010 visits is we switched tracking methodology in 2011 from a log ?le
based system to a tagging system
Number of Visits Passed on to Travel Industry Partners’ websites
Tere were 6.1 million click-throughs in ?scal year zo11. Tis compares to 6.6 million last year, an 8.o percent
decrease from last year. Click-throughs are de?ned as the number of times www.michigan.org web visitors
clicked on a link and were transferred to a travel industry private sector website.
In August zo11, the Pure Michigan Facebook page reached a record of more than ¸oo,ooo fans—the highest
number of fans for any state tourism Facebook page in the nation. Te Pure Michigan eNewsletter also passed
the ¸oo,ooo subscriber mark. Te Pure Michigan Facebook page also began utilizing the Facebook Question app
to give fans an opportunity to answer a Pure Michigan question every week. Te ?rst question posted, “What is
your favorite Michigan made food°”, received more than ;¸,ooo votes in just z¡ hours.
Two of Michigan’s best-known brands, Michigan International Speedway (MIS) and Pure Michigan, teamed
up to host the Pure Michigan ¡oo NASCAR Sprint Cup race at MIS in August zo11. Tis partnership brought
the Pure Michigan message to millions of NASCAR fans nationwide who watched the Pure Michigan ¡oo on
ESPN as well as the tens of thousands who came to MIS on race days. Te one-year partnership joining these
two brands, both focused on attracting new visitors to Michigan, is believed to be the ?rst time a state brand is
featured as the title of NASCAR’s premier stock car series.
With the success of zo11, MIS and Pure Michigan are again teaming up to host the Pure Michigan ¡oo
NASCAR Sprint Cup Series race at MIS in August zo1z. Te three-year partnership is a continuation of what
started in zo11. Te inaugural Pure Michigan ¡oo received overwhelming feedback from fans and tourists alike.
Travel Michigan rolled out an o?cial Pure Michigan merchandise line in early ?scal year zo11, including
sweatshirts, T-shirts, golf shirts, hats, umbrellas, travel mugs, golf balls, and more. Merchandise featuring
the Pure Michigan logo is now sold in ¡¸ Meijer stores across the state of Michigan. Travel Michigan also
announced a new Pure Michigan: Eating Fresh and Local in the Great Lakes State cookbook, published by
Midwest Living, that includes more than 1¸o pages of recipes and features about Michigan’s menu of culinary
o?erings in big cities and small towns. Te cookbook showcases Michigan’s culinary specialties and o?ers ideas
of how to enjoy a visit to savor and explore Pure Michigan products at u-pick farms, orchards, farmers’ markets,
restaurants, and more than 8o vineyards and wineries.
Media Familiarization Media Tours
Domestic Familiarization Media Tours (typically 20–30 travel writers from North America)
February ;–11: Twenty-?ve travel writers and editors representing national and regional media outlets split
between Crystal Mountain Resort and Spa (Tompsonville) and MarquetteiMunising
May 16–1,: Twenty-four travel writers and editors representing national and regional media outlets
experienced Detroit
August 1¡–1,: Twenty travel writers and editors toured “Te Great Waters” area, Eastern Upper Peninsula
(Sault Ste. Marie, Paradise, Grand Marais, St. Ignace, De Tour, Les Cheneaux, etc.)
International Familiarization Media tours (typically 1–5 travel writers)
September: German travel writer visit to Detroit, Frankenmuth, Grand Haven, Muskegon
October: United Kingdom travel writer visit to New Bu?alo, Holland, Whitehall, Silver Lake, Rothbury
Golf Writer Familiarization Tour (typically 6–8 golf writers)
Summer: Tirty-six golf writers and editors representing international, national and regional media outlets
experiences golf coursesicommunities in: Grand Rapids, New Bu?alo, Detroit, Traverse City, South Haven,
Gaylord, Oscoda, St Joseph, Grand Haven, Holland, Lewiston, Roscommon, Lansing, Petoskey, Arcadia,
Tompsonville, Bellaire, Brimley, Saugatuck.
Year-end Report to the Legislature / FY 2011 / 59
MEDC FY 2011
Individual Familiarization Tour
December: Travel writer in Detroit
In addition to the familiarization tours, Travel Michigan promotes all Michigan communities…all of the
time, with www.michigan.org and now even more than ever with an increasingly growing social presence
on Facebook, Twitter, YouTube, Flickr, e-newsletters, and the Pure Michigan Connect blog. Travel Michigan
also promotes all areas of the state with its WJR radio program in Detroit, which now also airs on stations in
Grand Rapids, Traverse City, Lansing, Kalamazoo, Hastings and other Michigan Talk Radio Network stations.
In addition, Travel Michigan does radio interviews every week on a network of seven stations featuring
conversation about weekly events, and often on other stations as well.
Partnership Programs
Te Partnership Program is intended to extend the marketing reach of Pure Michigan by leveraging private-
sector marketing dollars to promote Michigan. Te program’s key markets are Chicago, Cleveland, Indianapolis,
Cincinnati, Milwaukee, Columbus, Dayton, St. Louis, and Southern Ontario, Canada and feeder markets are
Toledo, Green Bay, South Bend, and Fort Wayne.
In ?scal year zo11, ¸o partnerships committed more than s¸.1 million for radio, billboard and online
advertising. Travel Michigan matched the private-sector partnership dollars for an total budget of s6.z million.
Te Travel Michigan advertising partnership program was launched in zooz. Interest in the program has
grown over the years, from three partners in zooz to ¸o partners in zo1o and zo11. Tis has been a win-win
program for the partners and Travel Michigan.
In an e?ort to accommodate the entire tourism industry, Travel Michigan has developed four partnership
programs: National Cable Advertising Partnerships (a pilot program in zo11), Out-of-State Advertising
Partnerships, Pay-per-Click Partnerships, and In-State Advertising Partnerships. All partnership advertising
includes the Travel Michigan brand identity and creative strategy to keep the messages consistent. Program
participants also receive value added bene?ts of featured web presence and public relations support.
Below is a list of 2011 partnerships:
National Cable TV Partners—$500,000 from each
Traverse City Convention & Visitors Bureau
Mackinac Island
Te Henry Ford
Out-of-State Advertising Partners
Ann Arbor Area Convention & Visitors Bureau
Beachtowns (nine communities along Lake Michigan coastline)
Frankenmuth
Greater Lansing Convention & Visitors Bureau
Mackinac Island
Downtown Grand Rapids—Grand Rapids Convention & Visitors Bureau
Blue Water AreaiPort Huron
Great Lakes Bay Region
Traverse City Convention & Visitors Bureau
Muskegon
Mackinaw City
Michigan Apple Committee
Michigan Arts Council
Detroit Convention & Visitors Bureau
Holland Convention & Visitors Bureau
Te Wilds of Michigan (Western Upper Peninsula)
St. Ignace
Michigan Snowsports Association (skiing)—winter
Kalamazoo Convention & Visitors Bureau
Mecosta CountyiBig Rapids
Monroe
Year-end Report to the Legislature / FY 2011 / 60
MEDC FY 2011
In-State Advertising Partners
Alpena
Flint
Sault Ste. Marie
Te Henry Ford
Downtown Grand Rapids—Grand Rapids Convention & Visitors Bureau
Frankenmuth
Great Waters of the Upper Peninsula (Eastern Upper Peninsula)
Ludington
Blue Water AreaiPort Huron
Sunrise Coast (seven communities along Lake Huron coastline)
Silver Lake Sands Dunes
ColdwateriBranch County
Michigan Apple Committee
Holland Convention & Visitors Bureau
Mecosta CountyiBig Rapids
Monroe
St. Ignace
Te Wilds of Michigan (Western Upper Peninsula)
Pay-Per-Click Partners
Muskegon County Convention & Visitors Bureau
Ramada Inns
Traverse City Convention & Visitors Bureau
Year-end Report to the Legislature / FY 2011 / 61
MEDC FY 2011
BUSINESS MARKETING
FISCAL YEAR 2011 (10/01/2010–09/30/2011)
Business Marketing Campaign
Te Michigan Economic Development Corporation (rvoc) implemented the sixth year of the Upper Hand
business marketing program in October zo11. Te Upper Hand campaign targets C-level executives (CEOs,
CFOs, site consultants, etc.) using a testimonial-style marketing strategy that encourages businesses to contact
the MEDC to see how their business can “get the upper hand,” although the campaign was scaled-back due to
reduced funding levels. Over ¸o successful executives have shared why they chose to locate or expand their
business in Michigan in a series of national and international television and radio spots. Actor and business
owner Je? Daniels introduces these executives during the Upper Hand ad spots. No new commercials were
produced nor any new web-based products created in ?scal year zo11.
Using an independent research ?rm, the MEDC has conducted tracking studies to generate a pre- and
post-assessment of the e?ectiveness of the Upper Hand advertising campaign in changing C-level executives’
attitudes and behaviors about Michigan as a place to start and do business. Te studies have been used to
determine changes in awareness of the campaign, assess changes in how business leaders feel about Michigan
as a place to do business, and identify actions taken as a result of the campaign. Aided awareness of the Upper
Hand campaign among National executives dropped from z¸ percent in zoo, to 1; percent in zo1o. Aided
awareness among Michigan executives dropped from 6o percent to ¡¸ percent. Unaided awareness remained
fairly consistent to o? slightly from last year. Consideration of Michigan for relocationiexpansion remains
extremely low. Only ¸.o percent of national executives report considering the state of Michigan as a location for
relocationiexpansion of their business. Positively, 1o percent of in-state executives would consider Michigan for
expansion of their business, a signi?cant increase from one year ago.
In January zo11, the Michigan Strategic Fund (MSF) and MEDC made the decision to consolidate its
marketing and communication programs under the Pure Michigan brand and the Upper Hand campaign was
suspended. Te Pure Michigan brand also is in use as the MEDC corporate identity in addition to targeting
tourist, business, talent, and urban audiences. Te MSF and MEDC issued Request For Proposals (RFPs) in
September zo11 to provide marketing and advertising services to help the MEDC market the state and build
the Pure Michigan brand. Te dual RFPs, funded by the z1st Century Jobs Fund, focuses on the MEDC’s other
e?orts to market Michigan overall and as a business destination. Together, the combined e?orts show Michigan
as an ideal place to visit, live, and work with goals including talent attraction and growing Michigan’s economy.
Nine proposals were received. A joint evaluation committee was appointed to review the proposals. McCann
Erickson USA, Inc. scored the highest among all of the proposals and the business marketing and advertising
services campaign was awarded to that agency. Te Pure Michigan brand also has been expanded to other state
departments through the DNR Recreational Passport and promotional video for the Secretary of State. Other
areas for expansion are under development.
Te www.MichiganAdvantage.org website was re-launched to re?ect the Pure Michigan brand and is
continually being updated as new programs and services are added or modi?ed. One new feature is the Pure
Michigan Business Connect website, a new s8 billion public-private initiative that strengthens Michigan’s
economic gardening philosophy through an alliance of the MEDC, Michigan companies, and other Michigan
organizations. Pure Michigan Business Connect matches people with resources, business support services, and
additional publiciprivate support. A marketing toolkit has been added that includes a number of easy-to-access
resources, including use of the Pure Michigan logo.
Along with advertising, the business marketing program funds events and trade shows in targeted industries
in which Michigan has unique strengths. Tese complement the MEDC’s business attraction and retention
e?orts. Some of the key shows and events the MEDC participated in during ?scal year zo11 included:
• North American International Auto Show (NAIAS): “Smarter Living in Michigan,” a ¸,ooo-square-
foot town square display dedicated to the state’s burgeoning alternative energy industry and innovative
companies, and featured ways in which alternative energy technologies are reinventing our lives.
Year-end Report to the Legislature / FY 2011 / 62
MEDC FY 2011
• CAR Management Brie?ng Seminars: largest management conference in North American automotive
industry
• 2010 World Stem Cell Summit: unites the stem cell universe of researchers, ReGEN industry leaders,
funders, medical philanthropies, policy-makers, advocates, educators and regulators to chart the future of
regenerative medicine
• 2010 MichBio Expo and Conference: largest gathering of bioscience professionals in the state where
representatives discuss current issues facing the industry, learn about the latest technologies, and interact
with vendors providing services to the industry
• Eighth Annual MidAmerica Healthcare Venture Forum: MidAmerica Healthcare Investors Network and
International Business Forum joined forces to unite venture capitalists from around the nation to facilitate
investment opportunities in promising healthcare companies from the MidAmerica region
• ACE II Annual Collaboration for Entrepreneurship: Great Lakes region entrepreneurs gather to network,
learn, and connect
• 2011 International Conference on Thermoelectrics: annual conference that brings together International
experts in the ?eld of thermoelectricity, drawing several hundred scientists and engineers from Asia, Europe
and the United States
VISITS TO WWW.MICHIGANADVANTAGE.ORG
FY2011 FY2010 FY2009
October ¸6,¡¸o 1¸¸,¸¡z ¡¸,,¸z
November 6z,8¸, 88,;6; ¡6,6z¸
December ¸6,o¸o 6z,o;¸ ¡o,8oz
January 6¡,z,; 68,1o¸ ¸1,6¡¸
February ¸¸,¸o6 ¸¸,1z, ¸¡,86,
March 6,,,;, 8¸,8¸o 1oo,o,¸
April 6¡,1,¸ 1¡o,¸¡¡ ,8,¡¸z
May 8¸,o¸¡ 18¸,8zo ,¡,¡8,
June ,¸,¡6; ;1,;o, ;6,¸¸¡
July ,o,66z ¸6,¡o¡ 6;,o16
August 1o6,1¡o ¸¡,o,¡ 6¡,¡;6
September 11¸,888 ¸¸,6;¸ 1z,,818
Total 916,507 1,053,292 870,771
Te ?scal year 2011 total website visits to www.MichiganAdvantage.org represents a 14.9
percent decrease over ?scal year 2010 visits; however, the last four months of ?scal year
2011 represents a 71.3 percent increase over the last four months of ?scal year 2010.
Fiscal year 2011 exceeded ?scal year 2009 website visits by approximately 5.2 percent.
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