GRAND RAPIDS — Brownfield redevelopment assistance offered through the Michigan Economic Development Corp. has spurred Benteler Corp. to invest $2.2 million in an expansion project adjacent to its Hall Street SE site, retaining 370 manufacturing jobs.
“Brownfield properties are expensive for private businesses to redevelop, and often remain vacant for years with no prospects for reinvestment,” Gov. Jennifer Granholm said. “Benteler’s expansion plans illustrate why Michigan’s brownfield incentives are a key component of our economic development arsenal for job retention and creation.”
In her 2004 State of the State address, Granholm announced a focused plan for achieving a powerhouse economy. So far this year, the governor and the MEDC have announced the creation or retention of approximately 14,321 jobs as a result of targeted assistance provided by the MEDC.
The Benteler Automotive project was one of nine major expansions and relocations announced by the governor yesterday. They are expected to create and retain a total of 8,683 jobs for Michigan workers, including 2,866 directly by the nine companies.
Benteler will redevelop a vacant contaminated property next to the company’s existing manufacturing plant at 320 Hall St. The company will benefit from brownfield tax capture valued at nearly $1.2 million, which will be used for public infrastructure improvements and abatement of lead and asbestos contamination. In addition, the MEDC approved a $220,000 Single Business Tax credit to be used for demolition of the building and parking lot, clearing the way for a 55,000-square-foot addition to the existing manufacturing facility.
“Redeveloping the U.S. 131 corridor has long been a goal of Grand Rapids,” said MEDC President and CEO Don Jakeway. “Not only will this project result in Benteler retaining 370 manufacturing jobs, it will open up the area to even more business growth and opportunity.”
Benteler Automotive Corp. is a wholly owned subsidiary of Benteler AG, Germany. The tier one automotive supplier manufactures safety and structural components, chassis, exhaust systems and tubular components.
“We are very pleased with the support we have received from the state of Michigan and the city of Grand Rapids,” said Walter Frankiewicz, president of Benteler North American operations. “Benteler is growing rapidly as we expand to serve our customers globally. It’s very rewarding to also be improving and growing in Grand Rapids, our original U.S. home and major manufacturing location for us in Michigan and the world.”
The city of Grand Rapids will capture more than $364,500 in local property taxes to assist with brownfield cleanup.