BY NATHAN PHELPS •
nphelps@greenbaypressgazette.com • May 10,
2010
In an area continuing to weather the lingering effects of one of the worst economic downturns since the Great Depression, Gov. Jim Doyle on Monday signed several pieces of legislation aimed at creating and retaining jobs and industry in the state. More here.
Wednesday, May 19, 2010
Friday, May 14, 2010
Mich. economic agency defends itself after audit
By TIM MARTIN
LANSING, Mich.
The head of Michigan's economic development agency said it will defend itself Wednesday from lawmaker criticism after an audit said some companies that received tax incentives didn't live up to agreements on how much they would pay workers.
Michigan Economic Development Corp. CEO Greg Main said agency officials will detail their review and audit practices for the tax credits at a House Tax Policy Committee hearing.
The MEDC has been under fire since the auditor general report on Michigan Economic Growth Authority tax incentives was released last month. State Sen. Nancy Cassis, R-Novi, wants the auditor general to do a more thorough review of tax credits for the 2008 and 2009 tax years because much of the audit focused on earlier years.
Cassis called the report "troubling" and said further investigation is needed.
"To put Michigan back on the right track, we must regain confidence in state programs, like MEGA," Cassis said in a statement. "This is done by being watchful and accountable with taxpayer dollars."
But Main said the follow-up report Cassis ordered will just duplicate a similar review already has started within the MEDC.
MEDC officials are upset they didn't get a chance to testify at last week's hearing of the Senate Finance Committee, which Cassis chairs.
Main said the agency agreed with much of the audit, but he has issues with how it and the MEDC have been portrayed by some lawmakers.
"I think there was an attempt to impugn the integrity of this organization and the companies who have used this program," he said.
MEDC started audits of every tax credit awarded since 2006 before the auditor general report was released last month. Those audits, done with the help of an outside firm, are to verify job creation numbers reported by companies. The audits should be finished this year.
MEDC also began conducting pre-audits before issuing tax credit certificates to companies this year and doing criminal background checks on many types of tax credit applicants. Pre-audits include on-site visits and reviews of documentation needed for verifying the number of employees hired and wages paid by companies receiving tax credits.
Gov. Jennifer Granholm ordered the background checks after a convicted embezzler out on parole was awarded a $9 million tax incentive in March. The credit was rescinded before RASCO CEO Richard Short got any money, and he would up in jail.
LANSING, Mich.
The head of Michigan's economic development agency said it will defend itself Wednesday from lawmaker criticism after an audit said some companies that received tax incentives didn't live up to agreements on how much they would pay workers.
Michigan Economic Development Corp. CEO Greg Main said agency officials will detail their review and audit practices for the tax credits at a House Tax Policy Committee hearing.
The MEDC has been under fire since the auditor general report on Michigan Economic Growth Authority tax incentives was released last month. State Sen. Nancy Cassis, R-Novi, wants the auditor general to do a more thorough review of tax credits for the 2008 and 2009 tax years because much of the audit focused on earlier years.
Cassis called the report "troubling" and said further investigation is needed.
"To put Michigan back on the right track, we must regain confidence in state programs, like MEGA," Cassis said in a statement. "This is done by being watchful and accountable with taxpayer dollars."
But Main said the follow-up report Cassis ordered will just duplicate a similar review already has started within the MEDC.
MEDC officials are upset they didn't get a chance to testify at last week's hearing of the Senate Finance Committee, which Cassis chairs.
Main said the agency agreed with much of the audit, but he has issues with how it and the MEDC have been portrayed by some lawmakers.
"I think there was an attempt to impugn the integrity of this organization and the companies who have used this program," he said.
MEDC started audits of every tax credit awarded since 2006 before the auditor general report was released last month. Those audits, done with the help of an outside firm, are to verify job creation numbers reported by companies. The audits should be finished this year.
MEDC also began conducting pre-audits before issuing tax credit certificates to companies this year and doing criminal background checks on many types of tax credit applicants. Pre-audits include on-site visits and reviews of documentation needed for verifying the number of employees hired and wages paid by companies receiving tax credits.
Gov. Jennifer Granholm ordered the background checks after a convicted embezzler out on parole was awarded a $9 million tax incentive in March. The credit was rescinded before RASCO CEO Richard Short got any money, and he would up in jail.
Sunday, October 11, 2009
One year after ribbon cutting, Valley company closes it doors
By Arthur Foulkes
The Tribune-Star
A local company that expanded into a new 37,500-square-foot facility one year ago near the airport has closed its doors.
Reel Time Logistics officially opened a new warehouse and distribution facility just west of the Terre Haute International Airport–Hulman Field in October 2008. Now the doors of that business are locked and no truck or other traffic is visible at the facility.
“Reel Time Logistics, to our knowledge, is closed,” said Lisa Johnson, marketing and communications manager for the Terre Haute Economic Development Corp.
One year ago, Reel Time Logistics had a ribbon-cutting ceremony at its new facility on South Hunt Street to expressions of optimism about the company’s future.
At the time, the company was providing third-party logistics services for companies such as Dicks Sporting Goods, Clabber Girl, Great Dane Trailers, Scott Pet Products and Cummins-Consolidated Diesel Co., a company official said at the time.
Reel Time Logistic employed about 50 people in October 2008, mostly full-time truck drivers, another company official said.
The Reel Time Logistics property, which includes the 37,500-square-foot warehouse and distribution facility and 20 additional undeveloped acres, is listed for sale with an Indianapolis real estate company. The property includes a little more than 30 acres in total with an asking price of $2.25 million, according to the Turley Martin Tucker Web site.
Local contractor Thompson Thrift built the Reel Time Logistics facility. Reel Time was founded 51⁄2 years ago in Terre Haute and operated out of offices south of the city while its truck fleet was based on Margaret Avenue prior to opening the Hunt Street warehouse and distribution building.
Company officials for Reel Time Logistics could not be reached Friday for comment.
The Tribune-Star
A local company that expanded into a new 37,500-square-foot facility one year ago near the airport has closed its doors.
Reel Time Logistics officially opened a new warehouse and distribution facility just west of the Terre Haute International Airport–Hulman Field in October 2008. Now the doors of that business are locked and no truck or other traffic is visible at the facility.
“Reel Time Logistics, to our knowledge, is closed,” said Lisa Johnson, marketing and communications manager for the Terre Haute Economic Development Corp.
One year ago, Reel Time Logistics had a ribbon-cutting ceremony at its new facility on South Hunt Street to expressions of optimism about the company’s future.
At the time, the company was providing third-party logistics services for companies such as Dicks Sporting Goods, Clabber Girl, Great Dane Trailers, Scott Pet Products and Cummins-Consolidated Diesel Co., a company official said at the time.
Reel Time Logistic employed about 50 people in October 2008, mostly full-time truck drivers, another company official said.
The Reel Time Logistics property, which includes the 37,500-square-foot warehouse and distribution facility and 20 additional undeveloped acres, is listed for sale with an Indianapolis real estate company. The property includes a little more than 30 acres in total with an asking price of $2.25 million, according to the Turley Martin Tucker Web site.
Local contractor Thompson Thrift built the Reel Time Logistics facility. Reel Time was founded 51⁄2 years ago in Terre Haute and operated out of offices south of the city while its truck fleet was based on Margaret Avenue prior to opening the Hunt Street warehouse and distribution building.
Company officials for Reel Time Logistics could not be reached Friday for comment.
Keeping promises on Ohio jobs behind AG Cordray's review of economic development awards
COLUMBUS, Ohio: With Ohio's unemployment rate hovering above 11 percent, the announcement Thursday by Ohio Attorney General Richard Cordray that he will start to review economic development awards made by the state of Ohio to make sure businesses and organization who took the money in exchange for creating or saving jobs are keeping their promises, should be received favorably by Gov. Ted Strickland and lawmakers who know the road to restoring prosperity is years away and growing steeper in incline each day.
The bill and the goal
Acting on a requirement in HB 420, a new law about transparency in government, Cordray said his office is ready to monitor the awards for economic development the state makes.
"Our goal, as defined by statute, "he said, "is to ensure that tax dollars are being used as intended in these awards. Promises were made by businesses and organizations to create and save jobs in Ohio and those promises must be kept."
His office mailed letters our this week to more than 3,000 recipients who received awards over a five year period between July 1, 2004 and June 30, 2009. The letter asks these recipients to complete an online report within 30 days, that the AG's office will then analyze and place the data from it in a report to the General Assembly.
"The public expects performance and accountability when the government spends our money for these purposes, and we will work hard to provide exactly that by enforcing the terms of these contracts," Cordray said in a media release.
To view the report, visit www.OhioAttorneyGeneral.gov/EDAP. The office will also monitor future awards and will report its findings to the General Assembly.
The bill and the goal
Acting on a requirement in HB 420, a new law about transparency in government, Cordray said his office is ready to monitor the awards for economic development the state makes.
"Our goal, as defined by statute, "he said, "is to ensure that tax dollars are being used as intended in these awards. Promises were made by businesses and organizations to create and save jobs in Ohio and those promises must be kept."
His office mailed letters our this week to more than 3,000 recipients who received awards over a five year period between July 1, 2004 and June 30, 2009. The letter asks these recipients to complete an online report within 30 days, that the AG's office will then analyze and place the data from it in a report to the General Assembly.
"The public expects performance and accountability when the government spends our money for these purposes, and we will work hard to provide exactly that by enforcing the terms of these contracts," Cordray said in a media release.
To view the report, visit www.OhioAttorneyGeneral.gov/EDAP. The office will also monitor future awards and will report its findings to the General Assembly.
Ohio's Third Frontier Yields $6.6B in Economic Activity
Ohio's $1.6 billion Third Frontier research and tech-commercialization effort, set to expire in 2012, generated $6.6 billion of economic activity, 41,300 total jobs, and $2.4 billion in employee wages and benefits following $681 million in state spending on the program between 2003 and 2008, according to a report released this week at a meeting of the Ohio Third Frontier Advisory Board and Commission.
Making an Impact: Assessing the Benefits of Ohio’s Investment in Technology-Based Economic Development Programs recommended that Third Frontier officials ensure that the program will continue past 2012; foster a better understanding of the program and its relationship to Ohio’s strengths; enable a stronger balance between research support and commercialization; and emphasize more entrepreneurial support programs, technology company attraction, and cluster expansion.
Ohio credits Third Frontier with commercializing or creating more than 500 companies and attracting $3.5 billion in private investment to Ohio. The report also credited Ohio Third Frontier with boosting the state's economy and high-tech business climate by:
• Dramatically increasing the availability of early-stage capital
• Improving the entrepreneurial environment for technology
• Improving research and development collaboration
• Driving employment growth in Ohio’s technology sector
• Contributing to the diversity and competitiveness of Ohio’s manufacturers
• Recruiting non-Ohio companies
• Charting a course consistent with tech-based growth in other regions
Making an Impact was produced for Ohio's Department of Development by SRI International and the Georgia Institute of Technology’s Enterprise Innovation Institute. The project also received guidance from the Ohio Third Frontier Advisory Board and Commission.
Making an Impact: Assessing the Benefits of Ohio’s Investment in Technology-Based Economic Development Programs recommended that Third Frontier officials ensure that the program will continue past 2012; foster a better understanding of the program and its relationship to Ohio’s strengths; enable a stronger balance between research support and commercialization; and emphasize more entrepreneurial support programs, technology company attraction, and cluster expansion.
Ohio credits Third Frontier with commercializing or creating more than 500 companies and attracting $3.5 billion in private investment to Ohio. The report also credited Ohio Third Frontier with boosting the state's economy and high-tech business climate by:
• Dramatically increasing the availability of early-stage capital
• Improving the entrepreneurial environment for technology
• Improving research and development collaboration
• Driving employment growth in Ohio’s technology sector
• Contributing to the diversity and competitiveness of Ohio’s manufacturers
• Recruiting non-Ohio companies
• Charting a course consistent with tech-based growth in other regions
Making an Impact was produced for Ohio's Department of Development by SRI International and the Georgia Institute of Technology’s Enterprise Innovation Institute. The project also received guidance from the Ohio Third Frontier Advisory Board and Commission.
Saturday, October 10, 2009
Saginaw Snags 500-Job Solar Plant
Gov. Jennifer M. Granholm Tuesday announced a significant addition to Michigan’s burgeoning clean-energy industrial base as Georgia-based Suniva Inc. will invest $250 million in a new solar manufacturing facility in Saginaw County’s Thomas Township. Suniva will create 500 new jobs over the next five years subject to receiving a Department of Energy loan guarantee, which the company recently applied for. The Michigan Economic Growth Authority Tuesday, on Michigan Economic Development Corp. recommendation, approved a photovoltaic Michigan Business Tax credit valued at $15 million over five years. State officials also approved incentives to move forward the Wixom transformation project announced last month. Clairvoyant Energy Solar Panel Manufacturing Inc. was granted a photovoltaic MBT credit valued at $25 million, and Xtreme Power Inc. received an advanced-battery credit valued at $100 million. More.
A Big Wake-Up Call for the Midwest
In an exclusive interview, Richard C. Longworth, author of "Caught in the Middle: America's Heartland in the Age of Globalism," describes "A Big Wake-Up Call" for the Midwest. Read it here.
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