Development Information

Development Area Development News Incentives Transportation Links

*Under Construction. Check back later for more updated material.

Development Area

Development News

Logistics firm expands into Van Buren Twp
Posted by Greg Migiliore, Ann Arbor Business Review

Incentives

Brownfield Redevelopment: The Brownfield Redevelopment provides Single Business Tax incentives for the redevelopment or improvement of a qualified “facility” (contaminated, functionally obsolete, or blighted property). The amount of an individual credit is up to 10 percent of the eligible investment costs a taxpayer incurs to redevelop or expand an eligible property. Site assessment funds may also be available through Wayne County’s Brownfield Development Authority.
Michigan Economic Growth Authority (MEGA) Employment Tax Credit: For projects creating numerous jobs within the state, this program can offset some tax liabilities that might otherwise impede new investment. This program requires average wages to be more than 1.5 times the federal minimum wage and the creation of 50 new jobs (100 new jobs for out-of-state companies). The tax rebate cannot exceed the net investment that a company makes in a facility for building, equipment, training and relocation costs.
Industrial Development Revenue Bonds (IDRBs): The MEDC and Wayne County’s Economic Development Corporation are able to issue tax-exempt and taxable IDRBs for creditworthy companies considering investing in eligible projects. Tax-exempt IDRBs can be issued for capital expenditures in manufacturing plants and equipment for projects up to $10 million per site, with a $40 million corporate limit. Interest paid to bond buyers is exempt from federal, state, and local income taxes the rate can be 70-80 percent of prime.
Taxable IDRBs have few federal restrictions and can be used for financing large projects in excess of $10 million. The interest rates are approximately 0.50 percent under conventional long-term rates because state and local income taxes are exempted. Advantages are found in longer terms (20 years or more) alternative source of capital compared to commercial banking, and better interest rates.
Tax Exemptions: State law exempts inventory, pollution control equipment, and certain tools, dies, jigs, and fixtures from local property taxes. The state sales tax is not levied on the purchase of machinery and energy used in manufacturing.
Investment Tax Credit: An Investment Tax Credit will be allowed on the Michigan Single Business Tax (SBT) for capital purchases made in the state. The timing and amount of the project’s capital investment affects the Investment Tax Credit amount. The MEDC has a tax specialist available to assist you with calculating the Investment Tax Credit.
PA 198 Tax Abatement: Property tax incentives are available to eligible businesses to renovate or expand aging manufacturing plants or to build new plants. This can reduce property taxes (real and personal) for up to 12 years. This can amount to a reduction in property taxes of approximately 50%. (Recent amendments to Michigan’s Business Tax provides for a credit of up to 24 mills for industrial personal property and commercial personal property by 12 mills.)
Tax Increment Financing (TIF): Recapture of local property taxes generated by new business investments can be used to pay for public infrastructure improvements or to fund demolition, infrastructure improvements, site preparation, and lead and asbestos abatement on eligible property for Brownfield Redevelopment projects. Creation and usage of TIF is a local governmental decision, except for brownfield sites where the MEDC approval may also be necessary.
EDF Transportation Economic Development Fund: The Michigan Department of Transportation (MDOT) manages several types of Economic Development Programs under the Transportation Economic Development Fund. Category A of this fund targets a variety of industries, including manufacturing activities, providing funding support for road improvements. These funds vary according to a series of criteria established by the State, including level of investment and jobs created.
Workforce Development: Michigan offers a coordinated job training system using federal, state, and local resources to provide a highly trained and productive workforce. There are funding sources available to help pay for customized training and retraining programs for companies hiring new workers and for upgrading the skills of existing workers.
New Employee Recruitment: Recruitment, screening, and testing services are available for existing, as well as new employers expanding in Michigan through state and local programs.
Land Bank / Turbo: Wayne County’s Land Bank Corporation TURBO Program (transforming underdeveloped residential and business opportunities) provides meaningful financial incentives to private property owners who develop or rehabilitate unproductive land within the county for a one year tax exemption during the year of construction and a 50% reimbursement of an amount equal to the real property taxes for 5 years.
SBA 504 Loan Program: For small and medium sized businesses where this financing will help companies create or retain jobs, export their product or service, and expand business ownership opportunities. Business whose expansion plans call for the investment and use of real estate or equipment for their businesses may qualify for up to 90% financing.
Infrastructure Assistance: If public infrastructure improvements (roads, water, or sewer lines) are needed to assist the company to invest in Michigan, the state and Wayne County are able to provide funds through federal and state programs on a limited and qualified basis.
Site Location Assistance: The MEDC and Wayne County maintain an active listing of sites that allows confidential, customized site information. The system allows us to provide immediate information on available buildings, certified industrial parks throughout the state.
Regulatory Assistance: The Michigan Business Ombudsman office works with Michigan businesses to cut red tape and expedite the regulatory process.
Permit Coordination: Any necessary permits can be coordinated through one-stop shopping with the MEDC account management team assigned to the project.
Wayne County One Stop Service: The County will provide you a one stop service to select and help analyze sites, secure state and local incentive, secure permits at local and state levels, and other assistance that you may need. As part of this process we also can assign a “permit ombudsman” to facilitate expedited permitting reviews and approval.
Wayne County Permitting Process: The County is willing to guarantee that permits required by County departments for project development will be issued within 60 days. We are also prepared to work closely with State and local officials to ensure their permitting processes can meet a similar time line.

Transportation Links

Launched by the Detroit Regional Chamber in 2008, TranslinkeD is your source for regional trade and transportation information, news, and events. TranslinkeD serves as a unified forum for addressing transportation policy in Metro Detroit. For more information, please visit the TranslinkeD website.

The Southeast Michigan Council of Governments is the Detroit Region's council of governments. SEMCOG supports local government planning on regional issues in the areas of transportation, environment, economic development, and education. For more information, visit the SEMCOG website.

The Michigan Department of Transportation is the State's transportation authority. MDOT aims to provide Michigan with a safe, efficient, and seamless transportation system that grows Michigan's economy and improves quality of life in every Michigan Community. For more info, visit the MDOT website.