Early birds go after state funds; Kalamazoo first to apply for loans to reuse former pfizer sites
KALAMAZOO -- Following a three-month delay, $12 million pledged to keep Pfizer Inc. workers in Michigan was released Wednesday by the state.
And just as fast, Ron Kitchens, president and chief executive of Kalamazoo-based Southwest Michigan First, was in Lansing to deliver applications on behalf of 21 companies wanting to generate 450 life-sciences jobs in the Kalamazoo area.
"It was important to us that as soon as the board approved the funding that we were here with our requests," Kitchens said.
"I'm not sure we'll get all those dollars. But if we got half of ours (requested dollars), it would be a huge win."
The state is seeking to expand its life sciences industry by offering $8 million in low-interest loans to businesses and entrepreneurs wanting to use assets left by Pfizer Inc. as it downsizes in Michigan.
Those assets are becoming available as the New York-based drug company winds down operations in Holland, Kalamazoo, Portage, Ann Arbor and Wayne County's Plymouth Township.
"These initiatives represent an outstanding opportunity to retain the life sciences talent and equipment now available in the state," Gov. Jennifer Granholm said in a statement Wednesday.
While the loan program was announced in June, it was approved Wednesday by the Michigan Strategic Fund board. The Michigan Economic Development Corp. coordinates the fund.
The state also has approved $3.4 million to convert a former Pfizer research facility in Holland into a life sciences research and commercialization center operated by Michigan State University.
Economic development agencies Lakeshore Advantage, Southwest Michigan First and Ann Arbor Spark will review the loan applications and make recommendations to the Michigan Strategic Fund board.
"With some of the state's best economic development organizations involved in the review process, these resources will result in new entrepreneurial activity and job creation," Granholm said.
Although the agencies have a list of businesses and entrepreneurs that qualify for the loans, any life sciences-related business can apply through them.
"It's not limited to just our three communities," said Michael Finney, president of Ann Arbor Spark.
Loans are available for $50,000 per job created, up to $500,000. Loans must be repaid in 10 years.
The money comes from federal tobacco settlement funds in the state's 21st Century Jobs Fund.
The Strategic Fund board also awarded a $550,000 grant to Ann Arbor Spark and Southwest Michigan First to operate a depot that will collect, refurbish and distribute donated Pfizer equipment to life sciences companies.
It is expected Southwest Michigan First will spend $150,000 to distribute and service equipment in the Kalamazoo area. Ann Arbor Spark will use the remaining $400,000 to cover the rest of the state.
"Growing the life sciences industry in Michigan is paramount to our economic diversification strategy," James Epolito, president of the Michigan Economic Development Corp., said in a statement.