(L/R) Representative Tim Moore, Senator Jim Barcia, Chamber President Mike Seward, Representative Jeff Mayes and Chamber Chair Stu Reid. (MyBayCity Photo by Marlo Leveling) Dow Corning May Get $36 Million/Year Tax Break to Expand More Here
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(MyBayCity Photo)
(MyBayCity Photo)
It was enough to make Uncle Sam jump high in the air, click his heels and cheer hallelujah.
To cause rockets to shoot skyward.
And make crowds surge into the streets shouting "excelsior!"
The most enthusiastic cheerleaders were state legislators who came to the Bay Area Chamber of Commerce annual meeting Friday bearing not only olive branches but what may be manna from heaven.
Legislators said they aim to secure increased energy capacity that will pump billions of dollars and hundreds of jobs into the local economy.
Chamber President Mike Seward credited Art Dore and Paul Rowley for their redevelopment efforts now focusing on Bay City's Uptown at RiversEdge and Chamber Chair Stu Reid and Vice Chair Max Holman lauded legislators for collaborating in efforts to revitalize the local economy.
Speaking to an ebullient capacity crowd at Lumber Barons, Sen. James Barcia and Representatives Jeff Mayes and Tim Moore told of plans for:
Energy bills that will allow construction of new power plants in Bay City and Midland and provide for alternative energy from renewable sources;
Tax breaks of $35 million a year to incentivize Dow Corning to make further expansions here rather than in Kentucky or Tennessee;
Fund construction of $$28 million in new facilities for nursing instruction at Saginaw Valley State University and $12.8 million at Delta College for a new Health & Wellness center and a new medical school at Central Michigan University, Mt. Pleasant; and
Build a new $5 million State Police headquarters and Bay Area Narcotics Team complex on US-10
Sen. Barcia assured the business group that legislators are evaluating the effect of the new Michigan Business Tax, that was created to be revenue neutral from the old Single Business Tax.
"We need to insure that financial incentives exist for businesses to start up and expand," said Sen. Barcia, noting negative factors to be overcome include a sluggish economy, home foreclosures and budget deficits.
Sen. Barcia outlined "exciting opportunities to expand and diversify our economy and make this region the engine of a statewide economic recovery."
New energy production is vital because Michigan now spends about $20 billion a year to import electricity from other states, said Sen. Barcia, adding: "The results have been detrimental because Michigan is subsidizing thousands of energy jobs in other states."
The Tri-County region could expect nearly $400 million in increased earnings for workers and their families as well as $14 million in additional earnings annually just from the proposed LS Power/Dynergy 750 megawatt coal fired plant to produce electricity and steam.
(MyBayCity Photo)
"Constructing this facility would represent a $1.5 billion investment, creating 1,500 jobs during four years of construction and over 240 permanent jobs," he said.
The proposed Consumers Energy $2.3 billion new plant construction at the Karn-Weadock complex at the mouth of the River is estimated to add 1,800 construction jobs over six years and 80 permanent positions. Sen. Barcia noted that 70 units of government are supporting the project.
The incentive package for Dow Corning to select this area as location for a new plant to produce polycrystalline silicon for which the world market is exploding.
The Bay County headquartered Dow Corning is already underway with a $1 billion expansion of its Hemlock Semi-Conductor (HSC) facility that will add 500 workers to its current force of 1,000.
The market is growing so fast the company can't keep up with demand for the silicon, used in solar panels and an array of electronic devices from cell phones to medical monitoring equipment.
A new plant is so sought-after that the governor of Tennessee not only came personally to Michigan but also reportedly asked Gov. Jennifer Granholm for a state police escort -- while he was trying to steal our business!
Kentucky also is said to be drooling over the Dow Corning plant and the Volunteer State has the advantage of cheap power from the Tennessee Valley Authority (TVA), a federal project that runs on water power.
While there are rumors Michigan can't move fast enough to secure the new HSC plant, they were squelched by Dow Corning's communications director Mary Lou Beneke who said no decision has been made and the firm is "waiting for a proposal from Michigan."
Sen. Barcia is a sponsor of a six bill package that would provide the $35 million in annual tax breaks "to entice Hemlock to stay local."
The tax credit, he explained, is to "cover the cost of the differential in energy costs" from the cost in Tennessee, said to be 60 percent cheaper with the TVA.
Dow Corning uses $100,000 in electricity every day, or $36.5 million worth a year, officials said. The proposed tax rebate will be based on kilowatt hours used by the plant.
Other bills will allow a resumption of the Paint 'n Pride program by the adoption of federal standards, providing a tax break to Paul Rowley for a Mill End demolition to make way for a new downtown development, including sales tax in gross receipts to benefit business, allowing off duty police and military personnel to carry firearms.
Good news for Michigan, Barcia said, is that the state legislature "is on track to pass all budget bills by mid-June, unlike last year when we had to extend the fiscal year."
Rep. Mayes explained that Michigan's budget problems "have been 20 years in the making and legislators are addressing them by "cutting millions and making major changes." He commented: "For once Michigan has an advantage since we are on a good track for this year's budget."
Energy bills call for the state to produce 10 percent of its energy from renewable sources by 2015 and to provide incentives to firms that use Michigan products or hire Michigan personnel.
He also cited "many manufacturing opportunities with renewables" and called energy efficiency "low hanging fruit" that will reap $3-4 for every $1 invested.
Michigan's "green" energy plan is "very aggressive," said Rep. Mayes, and is second only to California's.
He also pointed to state cultural initiatives that could help promote arts and culture in Bay City. "The statements that Bay County's best days are behind us" are frustrating and will soon be proven false, he indicated.
Rep. Moore, vice chair of the banking and finance committee, says the legislature needs to address predatory lending with bills such as licensing mortgage originators, requiring education and controlling fraudulent appraisals. "Not every lender is a bad actor," he said, noting the legislators must assure "people have access to capital."
Rep. Moore said he is opposed to Detroit's plans to have the entire state in one pool for vehicle insurance, a battle that is being fought hard in committee. Personal injury protection is another area of his concern and the physician shortage is a "very serious problems" to be addressed by the CMU medical school. He said 40 percent of MD's trained stay in the area. He also is seeking testing in schools for color blindness, noting his son was failing some tests because of that problem. One in 12 boys has color blindness while only 1 in 200 girls suffers from the malady, he said.
(MyBayCity Photo)
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