A multi-million dollar deal is at the center of an expansion project in northern Michigan that's expected to bring in more jobs.
A multi-million dollar deal is at the center of an expansion project in northern Michigan that's expected to bring in more jobs.
And it's for that very reason that states have been competing for their business. Hagerty Insurance is planning to expand its business and was looking at options out of state to help make it happen. But thanks more than two million dollars in a state tax credit the company is staying in Traverse City.
It's an expansion that will cost millions and create hundreds of new jobs, but that's why different states were competing to bring Traverse City's Hagerty Insurance to their area, in fact the company nearly turned out of state.
"Particularly in Arizona where we looked at the possibility of expanding there but that was not our preference," said Hagerty Insurance Community Relations Manager Carmen Stevens.
But since the Michigan Economic Growth Authority awarded the company a 2.2 million dollar tax credit Hagerty is keeping it's business in Traverse City, but the tax credit come with two conditions.
"Hagerty will not be recieveing any of the tax credits until they actually employ the people they've indicated they'll be employing and on the private investment side building at least one new facility," said Tino Breithaupt, Senior Vice President of Economic Development at the Traverse City Area Chamber of Commerce.
The company is expected to bring in an extra 386 new jobs and has agreed to a seven million dollar building expansion for the tax credit.
The state has also jumped on board to fund a separate multi-million dollar deal for parking that would help Hagerty to expand and provide extra spaces for downtown businesses.
"That means there will be no impact to the general public on increased taxes this will be funded by the taxes that are generated by the new development," said Jean Derenzy Grand Traverse County Brownfield Redevelopment Coordinator.
A total of more than 3.9 million in state and local tax capture has also been awarded for the old town parking plan. Officials say the next step is to ask for a one million dollar grant to lock in the plans and get the parking project moving.
