Live Blogging MEDC/MEGA board meeting

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10:29 – 10 year MEGA credit granted to DCIM.

 

10:31 Reno linen service seeking credit. It’s an Ohio company looking at establishing an MI location.  Epolito says “This mega has refused to participate in recession – in past year we’ve been more active than ever.

 

“Michigan loves Reno!” says Epolito.

 

“Ohio loves us too,” says Reno exec.

 

“Michigan loves you more,” says Epolito.

 

MEGA grants 5 year credit, contingent on license fee discounts being granted by Brownstown Township.

 

10:37

 

United Solar Ovonics up now. Sen. Mark Schauer accompanying them. Promising 300+ new jobs in Battle Creek, which has already promised ren zone and $2.6 million in “site improvement” subsidies. Schauer says firm also looking at New York.

 

UVS past recipient of rich benefits – See http://www.mackinac.org/article.aspx?ID=7698

 

Remi analysis cited by staff.

 

10:44  Epolito: “Thanks legislature for passing 11 new ‘econ dev tools’ in six months.”

 

10:47 20 tax year credit granted contingent on BC granting ren zone and property tax break. Room crowded, TV camera’s present. They all cleared out once ovonics tax break granted.

 

Atmosphere – jolly and collegial

 

 Morley company up – Saginaw County. State Rep. for Saginaw praising company, thanking Sen. Allen and Cropsey, and former Rep. McBride (now eco-devo person).

 

 Michigan Works will give $20k job training

 

Company cites Pakistan and India competition.

 

200 percent “high tech mega credit” just passed legislature for single company says Epolito, and this is the company. 5 year credit granted, no contingency.

 

NetEnrich in Ann Arbor up. Also seeking “high tech mega.”

 

10 year high tech credit granted contingent on locals offering property tax break. 

 

 10:50 Haggerty insurance in Traverse City up.

 

TC official praising MEDC, city, state, county, etc. City providing $5 million, brownfield $1 million, and more. Old ironworks property in old town. Tax breaks, subsidies for a parking structure, call center.

 

Company Attorney: “These are green jobs (because they are not manufacturing.”

MEDC person: “A inventive attorney – that’s a good one!”

Job training subsidies offered – $1000 per employee. Many parts to this package – lots of subsidies and tax breaks, TIFA, etc.

 

Staff says locals won’t grant tax abatement per contingency in proposal. Epolito moves to remove contingency, informs board “Everone’s in favor.” Vote taken, they are.

 

11:18  Various tax breaks, subsidies, tifa, etc. granted. Local officials, Haggerty people all hugging each other.  

 

Brownfield package for Sturgis developer up. Epolito praises developer for doing many similar projects – “You’ve been here just about every month, Scott – thanks for your work.”

 

These deals are all well greased. The board is essentially just rubber-stamping MEDC staff’s work. Potential beneficiaries still tense because it’s not official until board approves.

 

Morley must have had their press releases ready to go:

 

Morley Cos. win tax break to add 90 workers to force

 

by Jean Spenner | The Saginaw News

 

Tuesday October 14, 2008, 11:01 AM

 

Ninety jobs, — possibly more — are on their way to Morley Cos. in Saginaw Township.

 

The diverse homegrown business, 1 Morley Plaza, anticipates finalizing a contract this week with a nationwide market research provider that will bring work and a $1.7 million investment at the 13-acre complex, said Christopher J. Furlo, executive vice president.

 

Gov. Jennifer M. Granholm announced today that the Michigan Economic Growth Authority approved a five-year high-technology employment tax credit — 200 percent the first three years, 100 percent the remaining two — for Morley for up to 350 jobs.

 

The company employs about 195 workers.

 

That incentive helped Morley win the work, Furlo said. While the first contract will require 90 full-time workers, more work from the addition of new technology may bring more jobs.

 

The investment will go toward upgrading the buildings’ wiring, computers, computer hardware and software. The new technology includes improving the way numbers are dialed automatically and use of recordings that speed customer service allowing for more person-to-person time on the phone.

 

“This will be on the leading edge of technology,” Furlo said.

 

He said he could not give details on the contract nor the client.

 

 

 

On those High Tech MEGAs:

 

Under the MBT Act, the statute allows a qualified high technology

 

business to collect 200% of the sum of the payroll

 

and health care benefits for the first three years of the

 

credit, multiplied by the personal income tax rate. Businesses

 

that receive the 200% credit under this accelerated

 

scenario cannot exceed a seven-year time period for the

 

credit.

 

http://ref.themedc.org/cm/attach/944105D7-D6D8-497C-BCA0-A8F0B55FD1D7/HighTechMEGA.pdf

 

11: 40 Adjournment.

 

Granholm 1:00 pm press conference scheduled before this meeting to announce the tax breaks, boast about jobs.

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