The Michigan Strategic Fund board on Tuesday approved an incentive package, including a $120 million grant, for Dow Inc.’s plan to modernize its facilities in Midland and Williams Charter Township.
The incentives for Midland-based Dow support the retention of at least 5,000 Jobs and the company’s $785 million investment at two Michigan sites, according to a Michigan Economic Development Corp. briefing memo. Dow operates the Michigan Operations Industrial Park in Midland and the Auburn Operations facilities in Williams Charter Township.
“Today’s investment in Michigan will protect 5,000 good-paying jobs in the Great Lakes Bay region,” Gov. Gretchen Whitmer said in a statement following the vote. “This project invests in people and ensures we are home to cutting-edge R&D facilities. I am grateful to Dow for betting on Michigan. Together, we will pursuing our comprehensive economic development strategy to make Michigan the best state to live, work, and invest.”
The incentive package includes approval of a $120 million Critical Industry Program grant, a 15-year, 100% State Essential Services Assessment Exemption valued up to $454,450 for a minimum of $25 million investment in eligible personal property, a 10-year extension of the MSF Designated Renaissance Zone and the addition of parcels within the zone. The board also approved a mutually agreed early termination of Dow’s Michigan Economic Growth Authority tax credit. The CIP grant the MSF board approved Tuesday falls under the state’s Strategic Outreach and Attraction Reserve Fund, known as SOAR.
Officials said the funding was needed as the project’s economics have been challenged by several factors including rising construction costs and less competitive energy rates in Michigan compared to other Dow manufacturing sites.
“The Company is prudently choosing where to deploy investment capital, leading to competition for funding amongst various projects and Company initiatives,” MEDC staff wrote in a briefing memo.
Officials said Dow’s investment in its facilities is expected to improve and expand manufacturing, such as making silicone foams, coatings, gels, encapsulants and other materials for electric vehicle batteries and other technologies. Upgrades at Dow’s Michigan Operations Industrial Park in Midland, which serves both Dow and several tenant companies, may include fixing old water and sewer systems, officials said.
cwilliams@detroitnews.com
@CWilliams_DN
