SeedAmerica Acquires A.O. Smith Facility in Owosso for Redevelopment


The vacant, former A.O. Smith building in the City of Owosso has been acquired by Alpharetta, GA-based SeedAmerica, a non-profit firm specializing in the acquisition and transfer of underutilized real estate.
SeedAmerica works with businesses that have large, vacant buildings that are no longer of benefit to the owner. They are organized as a 501(c)3 real estate endowment fund under the IRS tax code. SeedAmerica received the property via the 561 Exchange, which enabled A.O. Smith to receive the greatest financial benefit for the property.

Upon acquisition, SeedAmerica takes a long-term ownership approach. Their goal is to redevelop these sites into leased space for businesses looking to start out, expand or start new ventures, thereby "seeding" the growth of the local economy. They can offer flexible, low-cost leasing to support development and have already approved grants specifically for this property. As a non-profit, proceeds are used to fund and grow the company's educational programs. For more information, visit www.seedamerica.com.

"We are thankful for A.O. Smith's decision to provide this building to SeedAmerica," said Justin Horvath, Director of the Shiawassee Economic Development Partnership (SEDP), which previously worked to promote the site and community to SeedAmerica representatives. "A.O. Smith's generosity will assure the building is reused and employing people again," he added.

The building has approximately 200,000 square feet of space and sits on 19 acres. It was previously home to Universal Electric (which was owned by George Hoddy and employed approximately 2,500 people at one time) and Magnetek before being acquired by A.O. Smith, which stopped operations several years ago. "Over the past two years, we have had many requests for building space in the 50,000-100,000 sq ft range, but we did not have the inventory available. This building helps to meet the real demand that is there," Horvath added.

"We are happy any time we can get a building in Michigan. This is our third building in Michigan and are starting to see a lot of positive things happening in the state," said Chris Zimmerman, SeedAmerica's President. "The community is an important part of SeedAmerica's efforts in this process. We will continue to gather and listen to its feedback and are looking forward to the many opportunities that lie ahead," he added.

Davis Cartage Company Breaks Ground on New 100,000 Sq Ft Facility

Davis Cartage Company, a Corunna-based transportation and distribution firm since 1941, recently broke ground on its new 100,000 sq ft state-of- the-art warehousing facility on Chestnut St in Owosso.
The company is making a $3,000,000 investment in the climate-controlled building, with this project creating 15 new jobs. The company currently employs 126 people in multiple facilities throughout Shiawassee County and Niles, MI.

"We feel this is the perfect site for our existing customers to take advantage of our future plan to move products from rail to warehouse to trucking. Our desire is to accommodate our customers when they need us the most and lure more business to our community," said company President Glen Merkel.

Davis Cartage offers a variety of warehousing and transportation services, including 75 trucks, 275 trailers, and 400,000 sq ft of warehousing space.

"Multiple parties were instrumental in ensuring the success of this site location, including Owosso Charter Township, the City of Owosso, State Representatives Richard Ball and Larry Julian and State Senator Valde Garcia, Chemical Bank, the Shiawassee Economic Development Partnership, Michigan Economic Development Corporation, and the Michigan Department of Transportation," he added.

"We value Davis Cartage's continued and long-term commitment to the local community, and are excited about the positive economic impact this project will have on the region. In recent years, Davis Cartage has continued to create good paying jobs in our state and we are fortunate to have their presence in Shiawassee County," said Shiawassee Economic Development Partnership Director Justin Horvath.

TiAL Products Recognized as 2007 Economic Development Project of the Year

The expansion of TiAL Products in Owosso is the Shiawassee Economic Development Partnership (SEDP)'s 2007 Project of the Year Award Recipient. The award is sponsored by Smith Family Funeral Homes, Jennings-Lyons Chapel of Owosso.
TiAL Products, a manufacturer of engineered products for performance turbocharging systems, is undergoing another expansion at their Owosso facility. The company is making a $452,588 investment in a 13,000 sq ft building addition and $2,940,000 in new machinery and equipment. The endeavor is expected to create up to 15 new jobs. The business currently employs 27 people. This project follows previous expansions by the business in 2005 and 2006.

"TiAL Products continues to grow and make a strong impact on the local economy, and we are greatly appreciative that they continue to invest in Owosso," said SEDP Director Justin Horvath. The SEDP has worked closely with the company on bond financing and securing a tax incentive.

"We are very proud to have our world headquarters here in Owosso, MI, and we look forward to significant growth in the future," said company President Gregg Jones.

The Project of the Year serves to recognize a new or expanding business in Shiawassee County that creates a significant positive impact on the local economy. Representatives from Smith Family Funeral Homes, Jennings-Lyons Chapel and the SEDP made the selection from multiple candidates.

TiAL Products' representatives will be honored during a presentation at the SEDP's Annual Meeting, to be held February 6th at Baker College of Owosso's Welcome Center.

JOBS Campaign Update

We are currently winding down the JOBS Campaign. As of January 29th, we have 91 committed investors totaling $1,361,145 over five years toward a goal of $1,400,000. In addition, we still have 27 pending investors at a total of $215,645. If you are still pending, please return your pledge form. If you have not been contacted about the JOBS Campaign, and are interested in learning more, speak with Justin Horvath at 989-723-5149.

Annual Report

Our annual report will soon be going to print. If you would like to receive a copy, please contact Justin Horvath at 989-723-5149. All current SEDP investors will receive one.
 

Pyramid Peak Coatings L.L.C. to Open in Owosso

Pyramid Peak Coatings L.L.C. has acquired the facility and assets of the former Vaungarde Acquisitions L. L. C. located at 630 S. Chestnut Street in Owosso. The new company will provide production painting services to Tier 1 stamping and molding companies for the automotive industry.
The company is making a $1 million investment in the 30,000 sq ft facility, with plans for up to 20 employees at start up in January and 40-50 when under full operation, expected in the second half of 2008. The business will focus on production painting of interior and exterior trim for OEM Automotive Manufacturers and their Tier 1 suppliers. Additional value added operations will include assembly, sequencing, and packaging.

The company will recruit associates directly from Baker College (Deana Doan, (989)-729-3611) and Michigan Works (Doris Stromer, (989)-729-6663).

"We are excited and thankful for the decision of Pyramid Peak to locate in Owosso and create jobs," said Shiawassee Economic Development Partnership (SEDP) Director Justin Horvath. The SEDP has worked with the Michigan Economic Development Corporation (MEDC) to provide assistance in the site location process.

"We are pleased with the warm reception we have received thus far from community leaders as well as fellow business people and are excited about our future prospects in Owosso," said company President James Richard. We look forward to being an active supporter and member of the community.

Wausaukee Composites, Inc. Acquires Nero Plastics, Inc.

Wausaukee Composites, Inc. announced that it has acquired Nero Plastics, Inc. of Owosso, Michigan.
Nero Plastics is a custom molder of low and medium volume structural plastic and composite components, and serves original equipment manufacturers (OEM's) in the heavy equipment, mining, heavy truck, mass transit, medical, and sporting goods industries. Nero Plastics is based in Owosso, Michigan, where it has approximately 180 employees in two facilities. Nero Plastics reported sales of $17.5 Million in 2006.

This strategic acquisition will accelerate Wausaukee Composites' growth in the North American structural plastics marketplace. Wausaukee Composites anticipates adding jobs at Nero's Owosso facility over the coming years. "We are continuing to expand our manufacturing operations in North America, in order to meet increased customer demand in our low to medium-volume, highly-engineered, custom molded product segments," said David Lisle.

Wausaukee Composites is a leading manufacturer of highly engineered composite plastic and fiberglass components for Original Equipment Manufacturer (OEM) customers in the Industrial Truck and Tractor, Mass Transit, Medical Imaging, Commercial Furnishings, Therapeutic Systems, Wind Energy, Recreation and Corrosion-Resistant Materials Handling industries, worldwide.

Wausaukee Composites operates three ISO 9001:2000 certified composites manufacturing facilities in Wisconsin and Michigan, where it has approximately 470 employees. Wausaukee Composites is a subsidiary of Sintex Industries, Ltd., a multi-national manufacturer and distributor of structural plastics and textiles, with manufacturing operations located in North America, Europe, and India.

TiAL Products Continues Expansion in Owosso

TiAL Products, a manufacturer of engineered products for performance turbocharging systems, is undergoing another expansion at their Owosso facility. The company is making a $452, 588 investment in a 13,000 sq ft building addition and $2,940,000 in new machinery and equipment. The endeavor is expected to create up to 15 new jobs. The business currently employs 27 people. This project follows previous expansions by the business in 2005 and 2006.

"TiAL Products continues to grow and make a strong impact on the local economy, and we are greatly appreciative that they continue to invest in Owosso," said Shiawassee Economic Development Partnership (SEDP) Director Justin Horvath. The SEDP has worked closely with the company on bond financing and securing a tax incentive.

"We are very proud to have our world headquarters here in Owosso, MI, and we look forward to significant growth in the future," said company President Gregg Jones. For more information on TiAL Products, visit their website at http://www.tialsport.com.

JOBS Campaign Update

As of December 6th, we have 53 committed investors totaling $1,004,080 (over five years), and 64 pending at a total of $624,405 toward an overall goal of $1,400,000. We have approximately two months left in the campaign and an additional 40 or so potential investors targeted that have not been solicited. We are now focused on moving the pendings into the committed list, so if you are pending and have not turned in your pledge form, please do so.

Site Selector Excursion

The event was a success with eight professionals in attendance, including the announcement of Pyramid Peak Coatings (see article above). All of the families in attendance had a good time, and gained an appreciation for what Shiawassee County has to offer as a business destination. We would like to thank our local leaders who participated (either at the dinner Friday night or Saturday on the train). We look forward to another successful excursion next year.

SBTDC Update

Staff has now completed training for SBTDC (Small Business & Technology Development Center) policies and procedures, and are planning educational seminars for 2008. We are already beginning to see more interest from increased advertising. If you know of anyone that might be interested in utilizing our services (including business planning, financing, marketing, etc), contact George Ramos at (989) 723-5149.

Revolving Loan Fund Grant Check Presentation

USDA Rural Development Director for Michigan Gene DeRossett recently presented a $25,000 ceremonial check to the Shiawassee Regional Chamber of Commerce (SRCC) to help business growth in Shiawassee County.

"Rural Michigan has tremendous economic potential," DeRossett said. "This investment will help foster business growth in Shiawassee County."

The money is available through a Rural Business Enterprise Grant and will be used to recapitalize the SRCC's Revolving Loan Fund. Since its inception in 2004, the fund has provided $125,000 in loans to local businesses. USDA Rural Development helped start the fund with a $99,900 grant (matched with $33,333 from the SRCC) and the new $25,000 grant (also matched with $8,400 from the SRCC) will allow the fund to make further loans and foster more economic growth.

"The Revolving Loan Fund is used to help small businesses in Shiawassee County grow, and we are thankful that the USDA is helping to recapitalize it for further usage," said Shiawassee Economic Development Partnership Director Justin Horvath.

Owosso Institutes Business Coordination Team

The City of Owosso has instituted a Business Coordination Team (with input from the SEDP), designed to streamline governmental processes and cut red tape for businesses interested in locating to or expanding in the community. The SEDP is a part of this team (along with other key city officials), and have already participated in two meetings. This endeavor will be beneficial for providing expedited and coordinated services to these clients.

Tax Capture to Aid TiAL Products' Expansion

The Michigan Strategic Fund approved a state and local tax capture plan valued at $257,992 to help finance site preparation and infrastructure improvements to facilitate the expansion of TiAL Products in Owosso. The three-phase, 58,000-square- foot expansion is expected to create 40 new jobs and generate up to $8 million in private investment.

Terex Simplicity Receives State Award for Outstanding Safety & Health Record

SEDP client and Durand-based Terex Simplicity recently received an award for an outstanding safety and health record from the Michigan Occupational Safety and Health Administration (MIOSHA).
The MIOSHA Consultation Education and Training (CET) Division recognizes the safety and health achievements of Michigan employers and employees through CET Awards, which are based on excellent safety and health performance. The CET Silver Award recognizes an outstanding safety record of 50,000 - 1,500,000 continuous hours worked without days away from work based on the employer's size and type of business.

"CET services is a program that we continually promote as part of our business retention efforts, and we are pleased to see this company has utilized it well," said SEDP Director Justin Horvath.

Since 1921, Terex Simplicity has been a leader in the manufacture of heavy-duty screens and feeders for the construction industry. The company employs 142 workers.

SCCMH Breaks Ground on Facility

Shiawassee County Community Mental Health (SCCMH) recently held a groundbreaking ceremony to mark its $1.4 million project to renovate and relocate to the former Charmilles building in the Owosso Southeast Industrial Park.
The facility will house its main offices, as well as offering the opportunity to pursue manufacturing contracts and workforce training on site.

The SEDP has provided assistance with site location, ombudsman services, and financing.

JOBS Campaign Update

The campaign is going very well. We have $574,000 (over five years) committed from 23 investors, and another $330,280 pending from 32 investors. This represents approximately 65% of our total goal of $1.4 million ($280,000 annually). Thanks to the Independent Newspaper Group and Quality Printing and Crest Printing for providing an in-kind investment of printed campaign materials.

Fall Marketing Plan

We have finalized our marketing plans for the rest of 2007. Events include:
Michigan Commercial Board of Realtors Annual Meeting in Farmington Hills - an event which features over 100 real estate brokers who do commercial and industrial projects in Michigan.

Industrial Asset Management Council (IAMC) Fall Forum in St. Louis - this national event includes site location consultants, real estate brokers and corporate real estate professionals.

Commercial Real Estate Women (CREW) Convention & Marketplace in Denver - Lindsay joined this professional association this year, and will be attending their convention for networking with real estate professionals.

Barcelona Meeting Point in Barcelona - the largest real estate forum in Europe (with over 190,000 attendees) and our first foray into international marketing of Shiawassee County, made possible through a partnership with Site Selection magazine.

We will also be having the Third Annual Site Selector Excursion in December.



SBTDC Partnership

We are formulating a partnership with the Michigan Small Business & Technology Development Center (SBTDC) - Lansing region. They essentially provide all of the same services as our Small Business Resource Center, and are required to serve our area. Such a collaboration will provide greater access to educational and financial resources to enhance our service provision to local entrepreneurs.
 

JOBS Campaign Update 

Resource Development Group has completed 40 interviews for their Community Assessment, with additional interviews and two focus groups planned over the next few weeks. Their report will be presented at the Chamber Board meeting in May, with a goal of starting the capital campaign in June.

SEDP Lobbies Federal Legislators in Washington  

The SEDP recently participated in the International Economic Development Council's Federal Economic Development Forum in Washington D.C., learning about the federal government's efforts to promote innovation in America's economy. Topics discussed included workforce development, research and development, entrepreneurship, technology transfer, and capital availability.

Revolving Loan Fund Grant  

The SEDP has submitted an application to the United States Department of Agriculture Rural Development for a $99,900 grant to recapitalize the existing Revolving Loan Fund. To date, we have made three loans totaling $125,000 to facilitate the expansions of growing manufacturing firms. Awards should be announced in the next month or so.

Agricultural Entrepreneur Initiative  

We are partnering with our local MSU Extension office to create a program of work to better assist agricultural entrepreneurs in Shiawassee County. Look for more information in the near future.

E85 Update  

Work continues to progress on the proposed ethanol plant in Corunna. The company's air permit process is moving forward, and the City of Owosso has committed 500,000 gallons/day to meet water needs (though it is expected that the company will find all they need within Corunna). The target for exercising the option and moving forward is Mid-May, with a summer groundbreaking and production beginning Summer '08.

IAMC Conference  

The SEDP participated in the Industrial Asset Management Council (IAMC)'s Spring Forum recently. This was another opportunity for us to meet face to face and build personal relationships with approximately 25 corporate real estate directors, site consultants, and developers. Our contact list is up to 176 individuals from various sectors who influence the development process. We continue to promote Shiawassee County to them, with several showing interest on various projects.

American Recycling Center Awarded SEDP's 2006 Project of the Year

American Recycling Center, a manufacturer of premium rubber granules, was recently recognized as having the SEDP’s 2006 Project of the Year, sponsored by Jennings-Lyons Chapel.

Annual Meeting Recap  

Approximately 75 attendees learned about the SEDP's 2006 activities and 2007 business plan at the annual meeting held on February 7th at Baker College of Owosso's Welcome Center.

Automotive Supplier to Locate in Owosso Charter Township

S Group Automotive, an automotive supplier based in Plymouth, is purchasing the Collins & Aikman operation on Delaney Rd in Owosso Charter Township. The endeavor will retain 30 existing jobs, create 30 new jobs, and generate a $4.5 million capital investment. A company representative was an attendee at our Site Selector Excursion in December.

Taylor Business Park Update  

We are currently in discussions with three real estate entities regarding potential development of the property, and continue to market it to specific business prospects. In March, we will be holding a meeting with the three local units of government (Morrice, Perry, and Perry Township) to discuss the water and wastewater feasibility study completed by Capital Consultants. This will hopefully continue to lead us down the path toward a cooperative infrastructure solution between those communities.

$150 Million Ethanol Plant Proposed For Corunna 

E85 Incorporated (E85 Inc), an ethanol company based in Washington State, has entered into a land purchase-option for the purpose of constructing a proposed 100-million gallon/year state-of-the-art ethanol production facility in the City of Corunna. 

The 150 million dollar development would be located on 130 acres of industrial property along Parmenter Road within the Corunna city limits.  Over 150 jobs would be created during a one year construction process, and approximately 48 full-time positions would be created to operate the facility.  The plant would have and estimated annual payroll of two million dollars. 

“The State of Michigan is a great location for our plant due to its strategic co-location with corn producers and the dairy industry, and close proximity to major fuel-ethanol markets. Through the efforts of the City of Corunna and Shiawassee Economic Development Partnership we are moving very quickly on this project. Given the community's continued support and that of so many other agencies at the state and local level, we feel certain we will be able to have our facility up and running in the second half of 2008. It is a long process from site selection to operation, but the team working with us is making it a smooth, timely process. We are very excited at the prospect of being a valued member of the local community.” said E85 Inc. Senior Vice President and Director Mark Dassel. 

E85 Inc. is planning to build ten 100-million gallon/year ethanol production facilities across the United States and intends to become a major producer and distributor of renewable ethanol motor fuels.  E85 Inc. is affiliated with Sterling Infotech Group, a diversified multinational corporation organized in India in 1988. 

“This proposed development is a home run for the local economy, in terms of jobs, tax base and a new market for our farmers,” said Justin Horvath, Director of the Shiawassee Economic Development Partnership which worked closely with city officials over the past several months to help the company select the site.  “What a great way to start out the new year for both the City of Corunna and Shiawassee County!” 

“We are excited about having our community make it to this point of consideration.  It would be a source of pride to the community to be a small part of the nation’s push to reduce our dependence on foreign oil, develop alternative and more environmentally friendly energy sources, and reduce our federal trade deficit.  Many positive benefits to our region could be realized directly and indirectly from this and other rural economic development initiatives.” Corunna City Manager Joe Sawyer said. 

“City management, staff, elected officials, boards, commissions and volunteers have all been working extremely hard over the past five years to improve the future of our community.  This announcement is a testament to their work ethic, talent and vision.  We have reached a major milestone in having our site proposed, and now begin a new phase involving public participation, permitting issues, economic incentives, utilities development and other official considerations by the City of Corunna and E85 Inc.” said Corunna Mayor Steve Corey. 

A town hall informational meeting will be scheduled in the upcoming weeks.  For on-line information, including frequently asked questions and links, please visit the City of Corunna web site at www.corm.us.  Additional questions may be emailed to ,  directed to the City of Corunna at (989) 743-3650, or to the Shiawassee Economic Development Partnership at (989) 723-5149.  

FREQUENTLY ASKED QUESTIONS ABOUT E85

The International Economic Development Council (IEDC) recognized the SEDP with an Honorable Mention award for our Site Selector Excursion at its Annual Conference, which recently took place in New York City. Lindsay and I were presented the award by (l) Todd Greene, Chair of IEDC's Awards Task Force and (r) Joseph Marinucci, Chair of IEDC's Board of Directors.