Economic Development

Coverage of projects, big and small, and the people who create them, which promote the economic health of a community, including manufacturing, retail, office, and hospitality developments.

Watson Engineering expands Taylor facilities

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Community Development

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September 16, 2010

Local companies are among those receiving Michigan Economic Development Corp funding through the Michigan Economic Growth Authority board, allowing them to expand and relocate so they can stay in Michigan.Among the recipients are a brownfield project in Taylor, for which $221,220 will support the demolition of two vacant commercial structures to make way for a 40,000 square-foot industrial facility to expand operations of Watson Engineering. That project will also include environmental remediation, a new parking lot, storm water management, and landscaping.Michigan brownfield programs provide incentives to invest in property that has been used for industrial, commercial, or residential purposes and to keep that property in productive use or return it to productive use. Brownfield incentives can be used for functionally obsolete, blighted, or contaminated property.Source: Michigan Economic Development CorpWriter: Kristin Lukowski

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Royal Oak develops non-motorized transit plan

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Arts & Culture

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September 16, 2010

Royal Oak residents want to hear from you about how you think it could be easier to bike around the city.An open house is planned for 7 p.m. Sept. 28 at the Royal Oak Farmer's Market, 316 E. 11 Mile Road. Bicycle boulevards, road diets, and bike lanes are all up for discussion. Specifically, the planners want to know where people bike and walk, where they wish they could bike and walk, and what can be done to improve the transit experience in the city.Todd Scott, a Royal Oak resident and bike activist who says he's been pushing for a non-motorized plan for some time, says he hopes the end product of the meeting is to have a plan that guides the city on what residents want as far as making roads bike-friendly and walkable."How do we encourage people to bike more?" he says. "We don't want to build bike lanes and not have them filled with cyclists. This will be a plan to get that done."Scott says he often hears from people who know about cycling paths in Metro Parks, for example, but don't want to load up the car just to go for a bike ride. "They want to see more in the urban areas," he says. "It's pretty exciting. There's lot of opportunity and potential in Royal Oak."The Active Transportation Alliance is working with the city of Royal Oak to help develop the non-motorized plan; contact Marissa Dolin at marissa@activetrans.org or (312) 427-3325, ext. 292 for more information.Source: Todd Scott, Royal Oak resident and cyclistWriter: Kristin Lukowski

MEDC deals add nearly 796 new jobs in Metro Detroit

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September 16, 2010

The latest slate of tax incentives from the Michigan Economic Development Corp comes with a healthy portion of jobs and investment for Metro Detroit. The region stands to benefit from 796 new jobs resulting from over $12 million in new investment.This package of tax breaks for corporate expansion promises to create 1,880 new jobs and generate $103.1 million in investment across the state as far west as Holland and as far north as the Upper Peninsula. The five deals in Metro Detroit come from a variety of firms, ranging from automotive companies to software businesses. These deals include:- Oxus America will receive a $359,070 tax break over seven years to set up its engineering and manufacturing facilities in Rochester. The new company is acquiring the assets of Delphi Medical System's oxygen concentrator business. It plans to spend $2.1 million on the new location, which will create 38 jobs. The company was also looking at a site in South Korea. - Silk Route Global is investing $1.9 million to expand its Troy operations, creating 103 jobs over the next five years. The global supply-chain software development company received a $608,037 state tax credit to entice it to expand in Michigan instead of Florida. - Search Optics provides digital marketing services for the automotive industry. It's sinking $4.1 million into its Ferndale facility to better serve its East Coast clients. A $3 million state tax incentive over the next seven years is expected to result in 288 new hires locally. Other potential expansion sites included Toronto and Florida. - Navistar, a commercial truck and diesel engine manufacturer scored a $2.5 million tax credit in exchange for plans to establish an engineering center in Madison Heights, a $4 million investment. That engineering center will focus on product development and engineering for military trucks and create 87 new jobs over the next seven years. Sites in Illinois and Indiana were also considered. - Weber Automotive plans to hire 280 people over the next five years as part of its plan to move to a production facility to southeast Michigan. The automotive supplier will receive a $2.1 million state tax credit. Source: Michigan Economic Development CorpWriter: Jon Zemke

Livonia’s Talan SBS turns small-biz consulting into new jobs

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Community Development

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September 16, 2010

Josh Holowicki and Todd Luthanen have been businessmen for years, but it took a while to decide which market to serve. That is until last year, when the two decided to go into the business of helping small businesses."We have always been passionate about small business," says Holowicki, director of business development for Talan SBS. The Livonia-based consultancy is on target to reach $350,000 in revenue this year and $500,000 next year. It now has a staff of two employees, six independent contractors, and one intern. It expects to add another 6-8 independent contractors over the next year as it grows its customer base from three full-time clients and a smattering of projects.Holowicki and Luthanen, both serial entrepreneurs, believe a business is a business at its core. They are there to make sure that purpose stays on track."We're not teaching dentists to be good dentists," Holowicki says. "We teach dentists how to run a good business."Source: Josh Holowicki, director of business development for Talan SBSWriter: Jon Zemke

Largest lithium ion battery plant on the continent opens in Livonia

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Community Development

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September 16, 2010

The largest lithium ion battery factory on the continent now belongs to Metro Detroit after A123Systems opened its newest facility in Livonia this week.With a capacity of 600 megawatts (which means it can produce lithium ion batteries for 30,000 vehicles annually) when fully operational, the plant is believed to be the largest of its kind in North America. A $249 million U.S. Dept of Energy grant received last year made possible the opening of the 219,000-square-foot facility. "When it comes to hiring there are a lot of highly skilled engineers, management, and laborers here," says Andy Chu, vice president of marketing & communications for A123 Systems. "There is a highly skilled labor pool here." The plant will manufacture prismatic cells and systems. These are seen as key components of the lithium ion battery, which is the primary piece to the next generation of electric vehicles made by the likes of Fisker Automotive. The factory will facilitate the production process, R&D, and manufacturing of the lithium ion battery's components, cell and module fabrication, and the final assembly of complete battery packs ready for vehicle integration. A123 Systems is based in Massachusetts and has a large engineering facility in Ann Arbor. It plans to open a coating plant in Romulus early next year, a move made possible by the federal grant and $125 million in state tax incentives from the Michigan Economic Development Corp. Source: Andy Chu, vice president of marketing & communications for A123 SystemsWriter: Jon Zemke

HESCO Sustainable Energy harnesses energy from sludge

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Economic Development

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September 16, 2010

HESCO Sustainable Energy isn't a head-turning, flashy, glamorous start-up. However, the Warren-based company has a lot of potential to cut out a huge chunk of energy costs for sewage treatment plants by harnessing the power of the sludge it's trying to clean.The 4-year-old company recently received a patent for its technology that harnesses the energy produced by organic sludge in wastewater and food processing plants. That energy is then rerouted into the plant, accounting for anywhere from 50-70 percent of its energy needs. "It really depends on the scale of the facility," says Kevin Livingston, president of HESCO Sustainable Energy.Livingston and his partner Glenn Hummel have both worked in the waste industry since college. In that time they developed the system that harnesses the energy from turning Class A solids into pathogen-free material."We came up with an innovative way to solve a problem in our industry," Livingston says. "We got excited about it."For good reason. HESCO Sustainable Energy made its first hire earlier this summer and expects to add 5-10 more within three years; it projects 100 employees within 15 years. The company has tested its technology at a sewage plant in Delhi Township and expect to open a second system in Grandville by the end of the month.Source: Kevin Livingston, president of HESCO Sustainable EnergyWriter: Jon Zemke

Safford & Baker law firm caters to Metro Detroit’s start-ups

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September 16, 2010

Attorneys Ralph Safford and Donald Baker had hit the top of their profession in the late 1990s, making partner in prominent local law firms and aspiring to serve Metro Detroit's growing entrepreneurial economy. Problem was, their firms didn't share that sentiment; accordingly the pair decided to break out and start Safford & Baker, a law firm geared towards entrepreneurs.The Bloomfield Hills-based practice got its start in 2000 and has since grown to four employees. It serves start-ups and entrepreneurs almost exclusively, representing and consulting with dozens of them across southeast Michigan. The firm has been able to carve a niche by molding its practice to suit client needs."The traditional law firm isn't built to serve entrepreneurs," says Matt Bower, an attorney with Safford & Baker. "Typical legal bills are too high for start-ups that want to stay lean and watch their capital."Safford & Baker accommodates by keeping overhead low and offering reasonable quotes. It offers flat fees so new companies will be certain on costs. Plus, the three lawyers love the positive aspects of the practice and can avoid the drudgery of bankruptcy law or litigation."It's just fun to watch entrepreneurs get something started and to be a part of that," Bower says.Source: Matt Bower, an attorney with Safford & BakerWriter: Jon Zemke

Beringea’s investments in green tech and smart phone accessories gain momentum

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September 16, 2010

Last week was a healthy one for Beringea and its Michigan-based portfolio. The state's largest venture capital firm invested in a smart phone accessory company and received subsequent backup for one of its previous green-tech investments in Ann Arbor-based Sakti3. GM Ventures, the VC arm of General Motors, led a $4.2 million investment round in Sakti3, contributing $3.2 million. Beringea had funded the University of Michigan spin-off earlier this year along with Silicon Valley-based Khosla Ventures. "We're really pleased," says Jeff Bocan, managing director of Beringea. "It's excellent validation. They're moving forward at a fast pace. Faster than we expected."The Farmington Hills-based company also made an unspecified infusion into mophie from its InvestMichigan! Growth Capital Fund. Mophie is a Paw Paw-based company that designs and manufactures accessories for smart phones. One of its principal products is a protective case that improves the battery lives of iPhones. Beringea's investment is expected to help fund development of future products and also bolster the company's marketing efforts."We're excited about a lot of what they're doing," Bocan says. "They're making smart phones more useful."Source: Jeff Bocan, managing director of BeringeaWriter: Jon Zemke

InvestMichigan! VC fund pumps $96 million into Michigan companies

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September 16, 2010

The InvestMichigan! Growth Capital Fund is putting up some impressive numbers these days. It has invested $95.78 million in 20 Michigan-based companies which employ 2,800 people.That list of companies reads like a who's who of promising start-ups, including Ann Arbor-based Accuri Cytometers, Salon Grafix of Auburn Hills, and InTouch Health. That last company is moving from California to Michigan, thanks in part to that investment."It's evidence that there is a vibrant, emerging economy taking shape," says Charlie Rothstein, founder and senior managing director of Beringea. The Farmington Hills-based venture capital firm, the largest in Michigan, is co-managing the InvestMichigan! Growth Capital Fund with Credit Suisse's Customized Fund Investment Group.The fund is made up of institutional investors such as the State of Michigan Retirement Systems and Municipal Employees Retirement System of Michigan. The fund invests in early stage and mature companies that are either headquartered in or moving to Michigan, or have a significant workforce in the state.So far about 46 million, or 40 percent, of the total program capital has been allocated or reserved. The fund has proven to be quite popular with local start-ups, having received applications for 846 potential investments in August alone.Source: Charlie Rothstein, founder and senior managing director of BeringeaWriter: Jon Zemke

Urbanophile Blog on the power of the Detroit brand

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Community Development

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September 16, 2010

Locally, we call our region a lot of things, ranging from Metro Detroit to Motown to southeast Michigan. One of the leading voices nationally on urban areas, the Urbanophile Blog, argues that we shouldn't dance around our name and should embrace Detroit, an under-rated brand that could serve as the linchpin for renewal.Excerpt:Detroit is one of America's most powerful brands. I realize this is not what most people think. Many would say it is one of America's most tarnished brands. That might be true, but that doesn't diminish its power. There are lots of cities that are struggling right now, but how many of them have a stream of international reporters, film makers, artists, etc. coming to see it in person for themselves? How many of them have attracted random bloggers from all over the country to analyze the place and propose remedies? Why is this place thought to hold lessons for America while so many others do not?Yes, Detroit is a brand with power. Yet too often its own residents feel the need to downplay it, euphemistically referring to the region as "Southeast Michigan" or to the city as "the D", as if the brand has to be changed in order to attract people or investment. That might be true to some extent, but this is not what is going to attract the pioneers and early stage investors who are going to reverse the cycle of decline. Changing the brand will be the consequence, not the creator, of civic renewal. To attract those first people and businesses, you need to lure them in a different way – you need to inspire. So I say embrace Detroit, stand up and be proud of the city and what it is and what it could be. It is the only way to generate the inspirational motivation that can bring renewal.Read the rest of the story here.