Michigan
instigated its own economic revolution three years ago with its highly
competitive economic incentive - the Renaissance Zone.
The first
phase of Renaissance Zones consists of 14 cities, counties and townships,
from Benton Harbor and St. Joseph to Detroit and the former Warren
Tank Arsenal. These are areas almost completely free of state and
local tax burdens, both for businesses and residents. The duration
of the zone varies from 10 to 15 years.
Since the
initiative started in 1997, 128 new projects have come to the state,
creating 3,663 jobs at a total investment of $331.8 million.
Catching
a WAVE in Benton Harbor
Benton Harbor
is home to the second manufacturing plant to locate in a Renaissance
Zone, WAVE - a joint venture between Worthington Steel and Venture
Industries.
WAVE manufactures
ceiling grids for suspended ceilings. Ron Badger, plant manager, said
the Michigan plant is the company's smallest at about 70,000 square
feet. He said there are also plants in Nevada and Maryland, with the
company's headquarters located in Pennsylvania.
The $10
million project in Michigan created 75 jobs.
“We opened
this facility to provide better service to our customers in the Midwest
region," said Badger.
Johnson
Controls Inc. is also taking advantage of the Renaissance Zone opportunities.
Johnson opened a new manufacturing plant in Warren.
The 165,000
square foot facility is located on the former Warren Tank Arsenal
plant. David Roznowski, spokesperson for Johnson Controls, said the
$35 million project is still in the early stages of development.
The plant,
which manufactures interior components for DaimlerChrysler, is operating
at about 20 percent of capacity. Construction on the project started
last fall and the company occupied the facility in April.
“The state
Renaissance Zone was one of the attractive aspects to the location,"
said Roznowski. “It has a good freeway and good work force to draw
from."
The plant
is one of 275 worldwide for Johnson Controls, which also has plants
in 28 countries, with a work force of 65,000. The company's auto group
alone grossed $12.1 billion last year, according to Roznowski.
And co-located
inside the Warren plant is the Becker Group, L.L.C., which does the
injection molding. Becker resides in 70,000 square feet of space in
the plant.
—
Matt Bird-Meyer