Governor Jennifer M. Granholm today announced that 251 jobs will be retained or created through an investment of more than $2.7 million in state Transportation Economic Development Fund (TEDF) grants in three Michigan counties. The transportation investments will leverage more than $9.7 million in private investment.
"From L'Anse to Mt. Pleasant to Ottawa Lake, these transportation investments will enable three major companies to remain in Michigan and continue to employ Michigan workers," Granholm said.
"Economic development grants help attract and retain economic development while improving transportation infrastructure. It's a win-win for everyone," said State Transportation Director Kirk T. Steudle.
The TEDF "Category A" or "Target Industries Program" is aimed specifically at providing transportation improvements that encourage private investments in Michigan that will create or retain jobs. The projects are located in Baraga, Isabella and Monroe counties.
The road improvements will help accommodate increased traffic and provide commercial routes that are safe and more efficient for new and expanding companies. Private developers, cities, villages, counties and MDOT will provide nearly $1.2 million in local matching funds (30 percent) for these projects.
Approved Category A projects by county
Baraga County
CertainTeed Ceilings Corp. manufactures and distributes acoustical ceiling systems throughout the world. Its L'Anse facility, along with another in Mississippi, manufactures and ships acoustical wet-felt ceiling tiles. The company determined it had excess capacity with production at both facilities and would close one, modernizing the other. Retaining the operations in L'Anse will result in an investment of $7,700,000 and the addition of 33 new jobs.
One of the obstacles to the selection of the L'Anse facility was site access. Access to the facility for employees and most commercial traffic is via South Main Street, over the Falls River Bridge. Raw materials arrive at the facility via a wood lot located off of US-41, west of L'Anse. A recent inspection determined that the Falls River Bridge, constructed 90 years ago, needed to be closed to traffic. Without this access and other state and local incentives needed to continue operations in L'Anse, the CertainTeed facility would have closed. Baraga County has an unemployment rate of 26.4 percent, the highest in Michigan. The closure of the facility would have resulted in the loss of 109 existing jobs and negatively impacted other local businesses and suppliers.
To resolve the access issues, the village of L'Anse will erect a temporary bridge over the Falls River and demolish the existing bridge and then construct a new bridge at the existing location. It also will reconstruct South Main Street to all-season standards.
The expansion also will increase the number of commercial logging trucks transporting raw materials to CertainTeed's wood lot. Located on the north side of US-41, the lot is in an area with limited sight distance. To resolve this, MDOT will construct a center left-turn lane and a dedicated right-turn lane on northbound US-41 that will remove the trucks from the through-traffic lanes as they enter the wood lot. The proposed cost of these improvements is $2,020,446, with $1,446,980 in TEDF Category A funds, $120,875 in matching funds from the Village of L'Anse, $326,007 from the Michigan Economic Development Corp., and $126,584 from the MDOT Superior Region. Construction is expected to begin later this year.
Isabella County
The Delfield Company, a subsidiary of Manitowoc Food Service, manufactures and markets a complete line of food service equipment for restaurants, hotels, and institutions, specializing in custom refrigeration. The company, which is located on Isabella Road in Mt. Pleasant, has begun to produce a custom beverage system for a national fast food restaurant chain. This development would result in an investment of $1,122,000 and the creation of 40 new jobs. However, Isabella Road is in poor condition. The company was concerned about damage to its products during shipment, as well as the appearance to customers as they arrive at the facility. Without improvements to Isabella Road, Delfield could move production of the new product to its facility in Tennessee.
The proposed project will include the reconstruction of Isabella Road between M-20 (Pickard Avenue) and the Delfield facility, located north of River Road. In addition, the left-turn lane from southbound Isabella Road to eastbound Pickard Avenue will be extended 1,200 feet north to improve turning movements and enhance safety at the intersection. The proposed cost of these improvements is $1,162,585, with $700,000 in TEDF Category A funds and $462,585 in match from the Isabella County Road Commission. Construction is expected to begin in 2010.
Monroe County
The Tile Shop, headquartered in Minnesota, opened its Ottawa Lake, Mich., facility in 2002 with seven employees. The facility has grown substantially and now employs 64 people in the manufacture of grout, mortar, cleaners and sealers, and the distribution of ceramic tile. It is located on Brown Street, an aging roadway with seasonal load restrictions. The load restrictions significantly increase the company's shipping costs, making expansion at this location not as cost-effective as expansion at other locations. The company had considered closing the Ottawa Lake facility and moving its operations to Virginia. With the commitment to improve the road, these 64 jobs will remain in Michigan. In addition, The Tile Shop will invest $940,000 to expand its facility, which will result in the creation of five new jobs.
The proposed project will include the reconstruction and widening of Brown Street between Memorial Highway and the west village limit. The work will result in providing all-season access to the existing road system which will allow the company to ship year-round on fully loaded trucks.
The proposed cost of these improvements is $784,503, with $627,602 in TEDF Category A funds and $156,901 in match from Whiteford Township. Construction is expected to begin in 2010.