OMMC Awarded MEGA Jobs Creation Credit 

 11/2/2009 

Plante Moran CRESA assists Ohio Module Manufacturing Company, a subsidiary of Hyundai Mobis, in 167,000 square-foot lease of Arvin Meritor Building and obtaining a MEGA Jobs Credit.

South Korea's largest auto parts maker, Hyundai Mobis Co., subsidiary, Ohio Module Manufacturing Company, (OMMC) manufactures front and rear chassis for a number of automotive clients, including Chrysler Jeep. The company was recently awarded a new $2 billion contract to produce chassis modules for the Jeep Grand Cherokee, which is produced in Detroit at Chrysler’s Jefferson East assembly plant.

Plante Moran CRESA (PMC) was engaged by OMMC to act as their independent tenant representative to identify and procure real estate and conduct site location analysis including possible incentives for this project.

PMC identified numerous locations for sale and lease including the final selected site, the former Arvin Meritor building in Detroit, Michigan. While, a move to this location offered OMMC many benefits, including proximity to their customer, it would only be viable if OMMC received incentives from the city, county and state to offset the additional site specific costs. PMC assisted OMMC in the process of procuring MEGA job creation tax credits as well as an approval for an extension of the Renaissance Zone that was currently in place for the building.

OMMC and PMC were able to partner with economic developers from the state of Michigan, Wayne County, and the City of Detroit to navigate the political, procedural, and strategic components to successfully gain all necessary approvals, which resulted in the Renaissance Zone extension and MEGA job creation tax credits, in total worth over $6 million to allow this job and investment commitment to move forward.

OMMC plans to create 200 jobs and invest $21.8 million into this facility. Locating in the heart of the American automotive industry will expose OMMC to future opportunities and the 262,000 square -foot Arvin Meritor building offers significant room for expansion.

This scenario is a perfect example of the benefits of using an independent fully integrated tenant representative. Because PMC does not represent any buildings or landlords the client receives truly conflict free advocacy and is able to accomplish its real estate goals and maximize savings. Furthermore, PMC's fully integrated platform brought OMMC a clear understanding of the location and real estate considerations as well as the ability to execute the plan.


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