FUTURE OF MICHIGAN

Top Economic Investments in Michigan, 2008-2009

Data provided by the Michigan Economic Development Corp., based on companies receiving MEGA/brownfield incentives in 2008 and 2009, and Crain's list of 2009 Largest Construction Projects. Following are the project descriptions, investments and locations.

• Clairvoyant Energy Solar Panel Manufacturing Inc. + Xtreme Power Inc.: Renewable-energy park on site of Ford Wixom Assembly Plant; $1.33 billion; Wixom

• Hemlock Semiconductor Corp.: Expansion of silicon manufacturing facility; $1 billion; Thomas Township

• University of Michigan: C.S. Mott Children's and Women's Hospital $754 million; Ann Arbor

• Chrysler: Trenton Engine Plant; $730 million; Trenton

• Severstal North America Inc.: Rehabilitate, expand steel facilities; $700 million; Dearborn

• KD ABG MI L.L.C.: Facility for lithium polymer batteries; $665 million; Midland

• A123 Systems: Lithium-ion battery plant, $626 million; Livonia

• Michigan State University: National Superconducting Cyclotron Lab; $550 million; East Lansing

• United Solar Ovonic L.L.C.: Solar panel manufacturing facility; $440 million; Battle Creek

• Beaumont Hospital: Troy site expansion; $420 million; Troy

• Walker Orchard Land Partners Redevelopment Project: Orchard Park development; Cabela's anchor; $400 million; Wyoming

• Henry Ford Health System: Henry Ford West Bloomfield Hospital; $360 million; West Bloomfield Twp.

• MPI Research Inc.: Renovation of former Pfizer buildings; $330 million; Kalamazoo/Mattawan

• McLaren Health Care Corp.: McLaren Health Village; $300 million; Independence Twp.

• General Motors Co.: Powertrain expansion Phase II; $285 million;

Pontiac

• St. Joseph Mercy Hospital: Renovation of hospital; $258 million; Superior Township

• Suniva Inc.: Solar panel manufacturing plant; $250 million; Thomas Township

• Compact Power Inc.: New battery plant for Volt; $244 million; TBD*

• University of Michigan: Michigan Stadium expansion; $226 million; Ann Arbor

• Johnson Controls-Saft Advanced Power Solutions L.L.C.: Hybrid vehicle battery plant; $220 million; Holland

• Phoenix Development Partners L.L.C.: Accident Fund headquarters; $182 million; Lansing

• General Electric Co.: Renewable energy R&D center at Visteon village; $175 million; Van Buren Township

• Henry Ford Hospital: Detroit hospital expansion; $154 million; Detroit

• Unity Studios Inc.: Film production center; $146 million; Allen Park

• College for Creative Studies: Argonaut Building renovation; $145 million; Detroit

• Pinnacle Race Course/Post It Stables Inc.: Horse-racing track; $142 million; Huron Township

• University of Michigan: Kellogg Eye Center and Brehm Diabetes Center; $132 million; Ann Arbor

• Continental Dairy Products Inc.: Dairy processing plant at former Delphi facility; $103 million; Coopersville

• Auburn Financial Center: Office and commercial complex; $100 million; Auburn Hills

• Wonderstruck Studios L.L.C.: Detroit Center Studios, an animation studio at former MGM Grand building; $85.9 million; Detroit

• Farmers Group Inc.: New office and print distribution center; $84.4 million; Caledonia

• City Center Two Project L.L.C.: Mixed-use downtown development; $84 million; East Lansing

• Kaiser Aluminum Fabricated Products L.L.C.: Billet casting and extrusion facility; $80 million; Kalamazoo

• Motown Motion Pictures L.L.C.: Raleigh Michigan Studios, a film production facility; $70.7 million; Pontiac

• Redico L.L.C.: Dearborn Town Center $68 million; Dearborn

• Roskam Baking Co.: Contract food facility in former Steelcase plant; $60.5 million; Kentwood

• Livonia Market Place: Shopping center at former Livonia Mall; $60 million; Livonia

• Eberspaecher North America Inc.: Renovation of after-treatment system assembly plant; $60 million; Brighton

• BAE Land Systems and Armaments L.P.: New research and development facility at former TRW plant; $58.4 million; Sterling Heights

*The two locations in consideration are Holland and St. Clair.

WIXOM, Mich., Sept. 10, 2009 – Ford Motor Company today joined Xtreme Power of Austin, Texas, and Clairvoyant Energy of Santa Barbara, Calif., to announce that the idled Wixom Assembly Plant will be transformed into one of the nation’s largest renewable energy manufacturing parks.

Clairvoyant Energy and Xtreme Power plan an initial investment of more than $725 million to redevelop the 320-acre plant site and its 4.7 million square feet of building space to manufacture solar power and energy storage systems, respectively.   The two companies will utilize approximately half of the square footage to manufacture their products, and will seek additional green-energy manufacturing and support companies to lease the remaining space.  The redevelopment work at the Wixom site is expected to begin early next year with manufacturing at the site slated to begin in late 2011.

The redevelopment plan is expected to create more than 4,000 direct jobs, including local suppliers, as well as support thousands of indirect jobs.

Ford has been working with the developers and state and local officials over the past nine months on a high-impact, environmentally responsible redevelopment plan for the 52-year-old auto plant that has produced such iconic vehicles as the Ford Thunderbird, Ford GT and Lincoln Continental.

“The Wixom Assembly Plant served Ford well for half a century and we wanted to ensure it served Michigan well into the future,” said Ford Executive Chairman Bill Ford.  “Thanks to the collaborative efforts of two visionary energy companies and the leadership of state and local officials, we are transforming our Wixom facility into one of the largest renewable energy parks in the United States.  I can’t imagine a better way to use this facility – for ourselves, our children and our grandchildren.”

Xtreme Power

Xtreme Power will renovate over 1 million square feet of the Wixom site to manufacture large-scale power systems that store renewable energy such as solar and wind power and redeliver that power when needed.  Once completed, Xtreme Power will produce turn-key power systems, which will support up to 10,000 megawatts of wind and solar power projects around the world.  Xtreme Power systems enable high penetration rates of renewable power onto the grid and will be a critical component of the 21st Century power infrastructure.

“This move is significant on both ends of the spectrum.  It underscores a significant shift toward the accelerated commercialization and adoption of strategic renewable energy technologies, due in large part to the deepened commitment on the part of local, state and federal policymakers to support companies like ours,” said Carlos Coe, president and CEO of Xtreme Power.  “We commend Ford for their commitment and dedication to turn this vision into a reality.”

Clairvoyant Energy

Clairvoyant Energy will redevelop a portion of the site to build state-of-the-art, high-efficiency solar panels.  Clairvoyant Energy, which has developed solar power park operations in California and Spain, is developing similar solar photovoltaic systems throughout the world.  Once completed, Clairvoyant will have the capacity to produce more than 2.5 million solar panels a year at the Wixom site, potentially replacing the need for one large coal plant every year.

“Clairvoyant Energy is fully energized to respond to the United States’ call to create the green jobs of tomorrow – today,” said David Hardee, CEO of Clairvoyant Energy.  “There is no better time than now, no better place than Michigan and no better set of partners than Oerlikon Solar and Ford Motor Company.”

Oerlikon Solar USA, Clairvoyant’s technology partner and a leader in thin-film solar manufacturing technology, also announced today it will establish a new regional office at the Wixom site as part of the new renewable energy park.

“As Clairvoyant’s manufacturing partner, this project is an exciting opportunity for Oerlikon Solar to apply its award-winning Micromorph® technology to a new, state-of-the art thin-film manufacturing facility in Michigan,” said Jeannine Sargent, CEO of Oerlikon Solar.  “With a strong local work force and the support of Wixom and the state, we are confident that in partnership with Clairvoyant we can help Michigan leverage its extensive manufacturing infrastructure for clean, renewable energy.”

About Wixom Assembly

Wixom Assembly Plant was one of Ford’s largest and oldest manufacturing sites, producing 6.6 million vehicles during its 50 years of operation.  Production began in 1957 when Wixom became Lincoln Division’s new national headquarters and the sole producer of all vehicles for the Lincoln Division.

Over the years, Wixom Assembly produced the Lincoln Continental, Town Car, LS, Mark VI, VII and VIII, as well as the Ford Thunderbird and Ford GT.  At its height, more than 5,000 workers were employed at the plant.  The Wixom plant employed approximately 1,000 workers when it closed in 2007.

The Wixom site proved ideal for redevelopment for new manufacturing facilities with an existing, highly developed infrastructure including rail and electrical power access and critical scalability with more than 4.7 million square feet of space for manufacturing.

New directions

The transformation of the Ford Wixom site into an eco-responsible manufacturing park is consistent with Ford’s commitment to environmental sustainability, as well as the state of Michigan’s efforts to diversify its economy and become a leader in the clean, renewable energy industry.

“This redevelopment project is a direct result of Ford and the developers working collaboratively with state and local government officials to support a vision for a greener technology future for Michigan,” said Phil Horlock, chairman and CEO of Ford Land.  “We had many options for this land, but we believe this project, that revitalizes a closed auto plant and the local community, has the greatest potential to bring green jobs and economic development to the region.”

State and local incentives were key components to bringing the energy park redevelopment project to Michigan, including refundable battery and photovoltaic tax credits, Michigan Economic Growth Authority employment tax credits, Renaissance Zone tax incentives and brownfield tax credits.

The Wixom redevelopment also includes a proposed Renewable Energy Research and Training Center at the corner of Interstate 96 and Wixom Road.  In addition to providing access to state-of-the-art research and training facilities for the tenants on the site, it is intended to provide universities and colleges with opportunities for on-site applied research classes in the renewable energy field.

About Ford Motor Company

Ford Motor Company, a global automotive industry leader based in Dearborn, Mich., manufactures or distributes automobiles across six continents.  With about 201,000 employees and about 90 plants worldwide, the company’s automotive brands include Ford, Lincoln, Mercury and Volvo.  The company provides financial services through Ford Motor Credit Company.  For more information regarding Ford’s products, please visit www.ford.com

About Xtreme Power

Xtreme Power is the world’s technology leader in large-scale power management and storage systems headquartered near Austin, Texas.  XP provides turn-key solutions for utility, wind, solar, and commercial/industrial applications.  For more information regarding XP, please visit www.xtremepowersolutions.com

About Clairvoyant Energy

Clairvoyant Energy is a worldwide developer of utility scale renewable energy projects, primarily in the solar space, and migrating to a vertically integrated dispatchable renewable energy solution provider.  Clairvoyant Energy developed and owns the largest solar roof-top power park in the world, located in Zaragoza, Spain.  Clairvoyant Energy is currently developing solar power park projects through the U.S. and Europe.  For more information regarding Clairvoyant Energy, please visit www.clairvoyantenergy.com

The 320-acre site is to be redeveloped as an industrial park for renewable energy in a $725-million project.

Two companies are to combine to make solar panels and a third is to produce large storage batteries for power grids.

David Hardee, chief executive officer of solar panel-maker Clairvoyant Energy, said the development would make Michigan “the Silicon Valley of renewable energy.”

State lawmakers were putting final touches Thursday on tax breaks to make it happen.

“I can’t imagine a better way to use this facility for ourselves, our children and our grandchildren,” Ford, said, beaming inside the former assembly plant.

Granholm said the conversion of the Wixom plant is “symbolic of the Michigan that we are to become.”

More than 4,000 jobs are expected to be created eventually. Oerlikon Solar plans to join Clairvoyant in the solar panel production, while Xtreme Power is to build storage batteries.

Energy park plans detailed

The defunct Ford Motor Co. Wixom assembly plant has a lot of space -- 4 million square feet -- and a lot of suitors to make it something else.

One developer proposed a shopping center.

There were "a bunch of crazy ones," too, like a plan to build a large amusement park, said Phil Horlock, chairman and CEO of Ford Motor Land Development Corp., which is selling the 320-acre site.

Not a suitable use, Horlock said. Amusement parks operate a few months a year with generally low-paying jobs.

"The guy even said to me, 'We can employ college students,' " Horlock said. "Clearly, it wasn't the right thing."

The right thing for the automaker is a $725-million project to turn the plant into the Renewable Energy Park. Clairvoyant Energy of California and its partner, Oerlikon Solar, based in Switzerland, are to build solar panels, while Xtreme Power of Texas is to make storage batteries.

The two operations are to use about half of the plant's space. Clairvoyant CEO David Hardee said the plant, close to I-96, has ready amenities, such as an industrial-strength power supply and easy access to transportation.

"Solar panels require a lot of glass, and Michigan is the glass capital of the U.S.," Hardee said, referring to the large glass-makers linked to the auto industry.

The project depends on obtaining state tax breaks and federal loans, which are in the pipeline, though not sealed.

The companies' top executives were joined by Ford Executive Chairman Bill Ford, Gov. Jennifer Granholm, Senate Majority Leader Mike Bishop, R-Rochester, and jubilant Wixom officials Thursday. The glitzy media event included a video of what the refurbished, 52-year-old plant would look like when it begins production in a couple years.

About 4,000 people will work in the plant, most for battery-maker Xtreme Power.

Ford called the project visionary, and said it conforms to Ford's corporate ethic of promoting sustainable energy.

"This was a plant that was sitting empty; this is a wonderful outcome for it. It's very much in line with our core values," Ford said.

He would not disclose the selling price of the plant.

Horlock said Ford has closed five assembly plants since 2005 and sold four of them, including Wixom.

Ford said a deal to create this many jobs is unusual.

Said Ford: "You don't see it very often, and we'd like to think that this could happen again. But frankly, there is a lot of hard work to make this happen."

The companies, Xtreme Power of Austin, Texas, and Clairvoyant Energy of Santa Barbara, Calif., plan to retool the aging factory, which once built such icons as the Lincoln Town Car and Ford Thunderbird, to manufacture solar panels and utility-scale batteries used for generating renewable power.

Overall, the project could create more than 4,000 new jobs, with production starting in 2011. The project hinges on the companies receiving hundreds of millions of dollars in federal loans to buy the abandoned site from Ford Motor Co.

If approved, the two companies expect to start hiring next year for about 1,000 construction jobs to rehab the site.
Details of the project were revealed Thursday at an event that included Ford Executive Chairman Bill Ford Jr., Gov. Jennifer Granholm and the companies' CEOs.

"Through this effort, we're going to put this plant and our skilled workers of Michigan back to work," said Ford, who spoke amid a backdrop of darkened assembly lines at the plant, which churned out 6.6 million vehicles before its closing in 2007.
The renewable energy companies have been courting state lawmakers to win enough tax breaks to make Michigan their top choice for the project. Senate lawmakers approved a specialized $100 million tax credit Thursday for the project, with a House vote expected next week.

Granholm touted the project as a major win for Michigan, which has been banking on growth in renewable energy to diversify its automotive-heavy economy.

"This is symbolic for Michigan in what we're going to become," Granholm said. The two companies plan to occupy about half of the 4.7-million-square-foot site and hope to attract complementary businesses, such as wind turbine suppliers.

Clairvoyant plans to make large-scale solar panels at the site, as well as locate the majority of its engineering and development staff in Wixom. It's partnered with Switzerland-based, Oerlikon Solar, a leader in thin-film solar technology, which will also establish its U.S. operations in Wixom.

Xtreme Power builds large-scale batteries for storing power generated from renewable sources, such as wind turbines and solar panels.

Some lawmakers were hoping to get the tax incentives in place in time for a Monday deadline to apply for federal loan guarantees for renewable energy projects. Granholm was confident that the bills would be passed and the project would proceed.

Ford declined to reveal financial terms of the purchase agreement to reporters after the announcement. He said during his speech that the plant served his family's auto company "exceedingly well for half a century," and he "can't imagine a better way to reuse the facility."

The park could employ at least 2,800 workers building storage batteries, solar panels and possibly wind turbines. The companies involved say it could eventually create more than 4,000 direct jobs, including local suppliers.

Less than half of the 4.7 million square feet of building space would be used to make the companies' own products; the rest would be leased to suppliers and other renewable energy companies. The companies also are looking to add a university facility on site to conduct research and train engineers and other highly skilled workers.

Xtreme makes large-scale energy storage and management systems for utilities, wind farms and manufacturers. The batteries can store energy during the night that can be used in the day, for example.

Clairvoyant makes solar power stations. It's helping to build the world's largest rooftop solar plant at a General Motors Co. factory in Spain.

Xtreme would hire 2,500 workers at Wixom between late 2011 and 2014, with the potential to create another 1,500 supplier-related jobs at or near the plant. Clairvoyant, whose manufacturing partner would be Switzerland-based Oerlikon Solar, could hire 300 employees starting in late 2011 and add another 700 later if business is good.

Granholm said the state, which has suffered through many plant closings and the recent bankruptcy reorganizations of GM and Chrysler Group LLC, worked with the parties involved in the energy park proposal to build "a business case that is second to none."

"This is symbolic for Michigan of what we are to become," she said. "We don't want to be viewed as Luddites in this state."

Dave Hardee, chairman and CEO of Clairvoyant, said the state's hard economic times and manufacturing muscle make projects like this crucial.

"Michigan needs (to) and will reinvent itself," he said.

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Associated Press Writer David Eggert in Lansing contributed to this report.

The vision to create a U.S. based "Renewable Energy Park" to create new "Green Jobs" was a clairvoyant inspiration by Mr. David Hardee.

His vision, supported by Ford Motor Company, the State of Michigan and so many others is now being realized.

Mr. David Hardee, Chairman and CEO

Mr. Hardee's distinguished career includes Chairman and Chief Executive Officer of Energy Softworx, Inc., an information technology company which specializes in software and e-commerce solutions for the utility and power generation industry; Senior Vice President and founding Chief Financial Officer of New Energy Ventures, Inc. (NEV), the largest energy service provider in the deregulating electricity market in the United States; and senior partner of the international law firm of Akin, Gump, Strauss, Hauer & Feld, as head of its Tax Department. Prior to joining the Akin Gump firm, he was the Democratic Tax Counsel for the Senate Finance Committee under Senator Russell B. Long and prior to accepting that position, Mr. Hardee was in general practice as a business, tax and real estate attorney for 10 years in Charlotte, North Carolina and General Partner of Hardee Capital Partners, LLP, an investment partnership that invested in various public and private debt and equity securities. Mr. Hardee received his BS degree in Commerce from Washington & Lee University and a J. D. from Duke University School of Law.  He currently resides in Santa Barbara, California.

Press Conference Mr. David Hardee

Flash is required!

Solar energy-power from the sun - is free and inexhaustible. This vast, clean energy resource represents a viable alternative to the fossil fuels that currently pollute our air and water, threaten our public health, and contribute to global warming. Failing to take advantage of such a widely available and low-impact resource would be a grave injustice to our children and all future generations. In the broadest sense, solar energy supports all life on Earth and is the basis for almost every form of energy we use. The sun makes plants grow, which can be burned as "biomass" fuel or, if left to rot in swamps and compressed underground for millions of years, in the form of coal and oil. Heat from the sun causes temperature differences between areas, producing wind that can power turbines. Water evaporates because of the sun, falls on high elevations, and rushes down to the sea, spinning hydroelectric turbines as it passes. But solar energy usually refers to ways the sun's energy can be used to directly generate heat, lighting, and electricity.

Watch the Wixom Press Conference

But the $725 million project hinges on Xtreme Power of Austin, Texas, and Clairvoyant Energy of Santa Barbara, Calif., winning federal loans and state tax breaks to refurbish the 318-acre property.

The project could create about 4,300 jobs. It also could establish a North American headquarters in Wixom for Oerlikon Solar, a Switzerland-based leader in thin-film solar technology, said Phil Horlock, chairman and CEO of Ford's real estate division.

Clairvoyant Energy is working with Oerlikon to bring the Swiss company's solar manufacturing technology to the United States. Clairvoyant plans to make utility-size solar panels at the site. Xtreme Power builds large-scale battery systems for storing renewable power.

Michigan lawmakers are trying to bring the deal to fruition. Both companies also plan to seek federal stimulus money with the Department of Energy and are considering sites in other states. They will select a site before Sept. 14, the deadline for applying for a federal loan.

A specialized tax credit tailored to the companies for a maximum of $100 million over four years was unanimously approved by a state House committee Wednesday but no vote was taken.

In a related development, the Senate Finance Committee passed a package Wednesday afternoon that would expand Michigan Economic Growth Authority tax credits this year.

The state is brushing up against its limit on the tax breaks for the year, and Gov. Jennifer Granholm and state economic development officials are pushing for an increase so Michigan does not lose a business attraction tool for the next few months.

Executives for the two energy companies said renovation of the site could begin almost immediately and production could start by late 2011.

"We have a unique opportunity in Michigan," said Carlos Coe, the CEO of Xtreme Power. "The infrastructure is in place there, and we can co-locate with other renewable energy manufacturers."

He said several other states were vying for the project but he declined to name them. Xtreme power develops and manufactures large-scale battery storage systems for use with renewable power sources, such as wind turbines and solar panels.

David Hardee, CEO of Clairvoyant Energy, said the chance to work with other alternative energy manufacturers is the key to the project.

Source: Christina Rogers And Mark Hornbeck / The Detroit News

Like a 'Silicon Valley'

The project is expected to attract other renewable energy companies. A research and development center also will be located at the site and the firms will partner with a Michigan university. The companies are working with University of Michigan, Michigan State University and Wayne State University.

"This could possibly become what Silicon Valley was to California," Wixom Mayor Kevin Hinkley told the House committee.

Creating an industrial park specifically for alternative energy businesses is a novel concept that could help generate some industry buzz for Michigan, said Dan Radomski, vice president of industry services for NextEnergy, a business incubator in Detroit.

"You haven't seen a whole lot of clustering in the renewable energy sector," he said. "If we're able to pull this off, it will be widely recognized as a kind of hub."

Granholm has made growth in renewable energy a cornerstone of diversifying Michigan's auto-centric economy. Earlier this month, Michigan and Detroit's Big Three automakers won more than $1.3 billion in federal grants to support the next generation of batteries and electric vehicles.

Clemente said the bill that passed Wednesday was rushed to committee to help meet the energy companies' mid-September deadline. "Usually we want a longer filtering process but in this economy we expect cooperation," he said.

Establishing a solar manufacturing business can be a risky proposition with countries like China and Taiwan churning out cheaper products on the market, said Adam Krop, a solar analyst for Ardour Capital Investments, LLC in New York.

Still, with the federal government promoting renewable energy, the United States has become the "next frontier" for many global solar companies and thin-film solar technology stands out from more traditional wafer-based equipment, Krop said.