Logistics provider, manufacturer to invest $75 million in Southeast Michigan
Nearly $75 million in investment is coming to Southeast Michigan, following approval of grants and tax breaks by the state of Michigan Tuesday.
The Michigan Strategic Fund board's approval of projects from Coyote Logistics in Detroit and KLA-Tencor Corp. in Washtenaw County are expected to create 800 new highly skilled jobs in the region.
"What it says is that Michigan really is a place that is attractive for high-tech, high-wage jobs," Jeff Mason, CEO of the Michigan Economic Development Corp., said during a phone call with media prior to the fund's vote. "Eight hundred new jobs in Southeast Michigan is just incredible in helping to grow and diversify our state's economy."
Coyote, a Chicago-based transportation management services company owned by UPS Inc., is planning a capital investment of up to $3.6 million in Detroit's Corktown neighborhood. Having outgrown its current facility in Ann Arbor, the company plans to lease an existing building to create 300 new jobs. Coyote primarily recruits recent college graduates.
The board approved a $1.5 million grant to the company to provide a competitive advantage over a possible expansion of a facility in Denver, Colorado. The City of Detroit anticipates approval of a personal property tax abatement in support of the project, as well.
Previously, Coyote received a $1 million grant from the Michigan Economic Development Corp. in 2013 to establish itself in the state. It received another $320,000 grant in 2015 to expand its operations.
Additionally, KLA-Tencor Corp. plans to invest more than $71 million to open operations in Michigan. The California-based semiconductor equipment manufacturer would lease temporary space in Ann Arbor until it chooses a site on which to build a permanent research and development facility in the townships of Ann Arbor or Pittsfield.
The investment would create 500 new, full-time jobs, most for recent masters and doctorate graduates from technical disciplines, highly skilled engineers and managerial level talent. The company expects the average wage to be $48-$72 per hour.
The board approved an eight-year 100 percent personal income tax break for the new employees valued at more than $16 million. It also approved a $1.5 million grant. Either township anticipates providing a 50 percent property tax abatement to the project, as well.
KLA-Tencor chose Michigan over competing locations in Dallas, Texas, and Toronto, Canada.