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Economic Development Corporation
ISSUE AREA: FINANCE
County: Marquette County, MI
Contact:
Mike Gokey
501 S. Front Street
Marquette, MI 49855
(906) 226-6591
Date Published: Summer, 2002
As part of the Lake Superior Community Partnership, Marquette
County’s Economic Development Corporation (EDC) is responsible
for bringing stable businesses into the County by finding
space for their facilities and helping to finance startup
costs. By using tactics first implemented by the State of
Michigan, the EDC has successfully set up seven quality industrial
parks within the last four years. Attractive to Marquette
County, results since its 1998 creation include the establishment
of numerous jobs and a more livable region.
Before the EDCs formation, the County commission had voted
to relocate the area’s regional airport to the closed
Air Force base, taking advantage of its 12,000-foot runway.
The first project awaiting the newborn EDC was how to make
effective use of land and facilities surrounding the new airport.
Taking advice from state representatives, the EDC implemented
a tax-free Renaissance Zone in the 5,200-acre area. This meant
that, because businesses needed incentives to establish locations
near the newly established K.I. Sawyer Airport, five local
and state taxes are waived until January 1, 2012. Taxation
will be eased back in as businesses will be required to pay
25% throughout 2013, 50% in 2014, 74% in 2015, and the full
amount starting January 1, 2016. During the Renaissance period,
companies would still pay unemployment insurance, Social Security
taxes, workers’ compensation, sewer and water fees, state
sales tax, and property taxes. Today this aviation and industrial
park is home to Sawyer International Airport, an 18-hole golf
course, the YMCA fitness facility with an indoor pool and
running track, daycare, restaurants, bank and more. For these
developments, K. I. Sawyer International Airport and Industrial
Park won the Naid 1999 Facility of the Year Award.
Since that time, the EDC has helped build seven successful
industrial parks. Site consulting is a key strategy in this
endeavor. At first, the EDC targeted individual companies,
persuading them to build in Marquette County. They soon learned,
however, that most companies contract site consultants that
use budgetary limits, environmental situations and space allocations
to find the proper location for their clients. Eventually,
the EDC itself established site consulting. Assessing limits
and needs of businesses, the Corporation used its County ties
to find its clients ideal locations within Marquette County.
Witnessing the initial success of site consulting, the EDC
wanted to take two steps further and become Marquette County’s
one-stop shop for developing businesses. First, it implemented
a Revolving Loan Fund – a pool of money collected from
state and national grants that is used to cover gaps in funding.
In other words, this money is loaned to businesses utilizing
the EDC site consulting service when they are short a specific
amount. Because the loans are paid back with interest, the
Revolving Loan Fund continues to grow. Second, the EDC began
constructing buildings for its clients. For example, banks
and credit unions around Marquette County lent the EDC $600,000
to build a state-of-the-art facility for Delphi Automotive.
As Delphi pays its monthly rent to the EDC, it can then make
its payments to the bank while attributing interest it charges
to profit. Thus, the EDC helps to sustain its progress.
Since 2000, Louisiana Pacific Building Products, American
Airlines Maintenance and American Eagle have set up location
in different parts of the County. In addition, the American
Communications Network opened a branch in K.I. Sawyer. This
move meant more to the community than the 400 jobs it created,
negative perceptions were altered, and good things about Marquette
County began to spread nationwide. Corporate heads first saw
the Upper Peninsula as rural and remote area without services
to address daily needs. After visiting however, they realized
that Marquette County was a growing technological area with
a skilled workforce, impressive public schools and a high
quality of life.
Because Marquette County is home to only about 64,000 residents,
the EDC sees most future business developments supporting
20-50 employees with the available financing options, rather
than large corporations. Just like the situation with the
American Communications Network, changing negative stereotypes
about the area is always at the top of the EDC’s list.
Additional Contact:
Stu Bradley
115 S. Lakeshore Blvd., Suite B
Marquette, MI 49855
(906) 228-4600
Related Resources:
Marquette County Profile
http://www.marquette.org/economic_dev/
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