State fund seeks to fill Pfizer gaps

LANSING -- Determined to retain as many jobs and buildings as possible in the wake of Pfizer Inc.'s research pullout from Michigan, the Michigan Economic Development Corp. is offering $12 million in grants to regional economic developers looking to grow life science companies.

The so-called Pfizer asset-retention program is targeted at keeping about 2,400 scientists and 45 buildings the company has in the state up and running -- not by Pfizer, but by smaller companies or scientists with ideas for new businesses.

"It's critically important that we act now," Mike Jandernoa, a principal of Bridge Street Capital and former CEO of Perrigo Co., told the Strategic Fund Board, which approved the program Tuesday. "These scientists are being recruited to go all over the world."

Pharmaceutical giant Pfizer announced in January that it was cutting 10,000 jobs worldwide. Plans called for closing two Ann Arbor sites, cutting up to 2,160 jobs, and selling or spinning off research operations in Kalamazoo, potentially affecting 250 jobs.

The Strategic Fund Board Tuesday also approved a Choose Michigan Fund, which would provide $30.8 million in upfront cash incentives for companies deciding between Michigan and other states for business expansion.

The fund is designed to seal the deal with companies already approved for other incentives, such as Michigan Economic Growth Authority tax credits. It would offer no-cost or low-cost loans for essentially anything the company wanted, including job training or land. The loans would have to be repaid.

The $42.8 million total involved in the two programs comes from remaining money in the 2007 budget of the 21st Century Jobs Fund -- Gov. Jennifer Granholm's premier job-creation tool.