Latest MEGA grants include defense, assisted living center projects
Under tax incentives approved today by the Michigan Economic Growth Authority, defense contractor Science Applications International Corp. could add 50 jobs in Livonia if it soon lands an infantry fighting vehicle contract, and a proposed assisted living center in Detroit could bring 150 new jobs.
McLean, Va.-based SAIC (NYSE: SAI) will receive a two-year high technology employment tax credit, along with a previously approved $59,000 property tax credit, if it wins one of three initial development contracts on the $17 billion Ground Combat Vehicle and invests $805,000 to add 50 jobs.
The company directly employs 155 people at a technical center in Sterling Heights but will qualify for the credits only if it adds 50 jobs above the base of 322 employees across all of its local subsidiaries and “related entities” in Southeast Michigan. They include offices of Reveal Imaging Technologies Inc. in Rochester Hills, Benham DB Inc. in Walled Lake, and Patrick Energy Services PC in Novi.
SAIC leads one of three defense industry teams with pending bids on the Ground Combat Vehicle, a proposed replacement for the aging fleet of Bradley Fighting Vehicles, expected to be awarded later this year. The other teams are led by Sterling Heights-based General Dynamics Land Systems and BAE Systems Inc., which houses its Heavy Brigade Combat Team and Michigan headquarters in Sterling Heights.
Also approved today was a $2.5 million Michigan Business Tax credit sought by developers PVM EJNP Real Estate Company LLC of Southfield and Detroit Affordable Assisted Living LDHA LP of Southfield for a $20 million investment to renovate and combine a former metal processing center and a shuttered pharmaceutical company building into one larger facility.
The combined building, when complete, will house the assisted living center and the Center for Senior Independence Program for All Inclusive Care for the Elderly as two lessees, and is expected to house 150 new full-time jobs.
Other incentives approved include:
• A $201,752 local government and school tax capture for the Wyandotte Brownfield Redevelopment Authority, to demolish a 24,000 former police station and court house building and build a new 17,500 square foot medical office building, for a $2 million investment expected to create up to 70 full-time jobs.
• A $301,133 local government and school tax capture for the Detroit Brownfield Redevelopment Authority, to demolish a 1,624 square foot former gas station and build a Family Dollar retail location, in a $1.4 million investment expected to create up to 15 new jobs.
• A modification to a previous MEGA board decision in February for KUKA Robotics Corp. to invest $4.7 million in relocating its Clinton Township headquarters to Rochester Hills and retain 68 local jobs. The modification calls for the company to relocate to Shelby Township instead of Rochester Hills.
• A $2.1 million local government and school tax capture for the Washtenaw County Brownfield Redevelopment Authority, for a $49 million investment to clear three vacant one-story buildings for a new four-story building with retail space and 230 apartments in Ann Arbor, expected to create up to 45 new jobs.
• $4 million in tax breaks for Vermont-based auto supplier Plasan Carbon Composites Inc. for a plant in the West Michigan city of Walker, creating an estimated 202 jobs. Plasan previously had received a nearly $700,000 tax credit to open a technical center with 36 jobs in Wixom. MEGA changed the agreement from a seven-year pact to five years.