MI: Lacks Receives State Support for New West Michigan Plant | Trade and Industry Development

MI: Lacks Receives State Support for New West Michigan Plant

Apr 03, 2012

The Michigan Economic Development Corporation announced that the Michigan Strategic Fund has approved a $350,000 Michigan Business Development Program incentive for the establishment of Lacks Enterprise’s new manufacturing plant in Cascade Charter Township that will generate up to $31.9 million in new private investment, adding a projected 120 new jobs.

 “Lacks is a vitally important player in our automotive supply chain with more than 2,200 employees here and their decision to expand in Michigan says much about our improved business climate,” said MEDC President and CEO Michael A. Finney. “Our flexible incentive program, Michigan’s simplified business tax structure and our new efforts to connect employers with talented workers, are propelling us to one of the best business climates in the country.”

 Lacks Enterprise, Inc. has been awarded a $350,000 Business Development Program incentive to expand its West Michigan operations. Lacks proposes to invest up to $31.9 million to establish a new plant in Cascade Charter Township to manufacture and warehouse chrome plated plastic parts for the automotive and appliance industries. The company expects to create up to 120 new jobs as a result of the project. Michigan was chosen over competing sites in Kentucky, South Carolina and Virginia. Cascade Charter Township has offered a 12-year tax abatement to the project.

 “The Lacks family is pleased to be able to provide additional premium employment opportunities for West Michigan residents and to continue to grow in West Michigan, as they have since 1961,” said Lacks Executive Director of Human Resources Jim Green. “We were actively pursued by other states and based on the quality and caliber of the available work force in West Michigan, the business climate and cooperation from all of our business partners from the State of Michigan and The Right Place it was an easy decision to continue to grow in our own backyard.”

 Cascade Charter Township is supportive of this project and plans to approve tax abatements for Lacks

“When most new jobs in West Michigan are created by existing businesses, it’s that much more important to have a strong retention strategy. This announcement demonstrates the success of our business retention strategy, keeping companies like Lacks Enterprises growing in the region,” said Birgit Klohs, President and CEO, The Right Place, Inc. “We commend Lacks for choosing to expand in West Michigan instead of other states that were pursuing this opportunity. The Right Place is committed to ensuring that our region’s companies continue to thrive, and through collaboration with our state and local partners like the MEDC and Cascade Charter Township, we are making it happen.”

 Signed into law by Snyder in December, the Michigan Business Development Program provides grants, loans and other economic assistance to qualified businesses that make investments or create jobs in Michigan, with preference given to businesses that need additional assistance for deal-closing and for second stage gap financing.

 The MSF will consider a number of factors in making these awards, including: out-of-state competition, private investment in the project, business diversification opportunities, near-term job creation, wage and benefit levels of the new jobs, and net-positive return to the state. Business retention and retail projects are not eligible for consideration of these incentives

The Michigan Business Development Program replaces the state’s previous MEGA program that was a feature of the Michigan Business Tax that was eliminated under business tax restructuring legislation approved and signed into law by Snyder in May 2011.

 The Michigan Economic Development Corporation, a public-private partnership serving as the state's marketing arm and lead agency for business, talent and jobs, focuses on helping grow Michigan's economy. For more on the MEDC and its initiatives, visit: www.MichiganAdvantage.org.