In 1997, Michigan became the first state in the nation to offer tax-free Renaissance Zones to help spur new jobs and investments. These designated areas are free of most state and local taxes for up to 15 years. So far, the innovative zones have proven quite successful and are credited with luring 128 companies to the state, as well as creating 3,663 new jobs and over $330 million in new investments. However, these zones were not previously applicable to the Michigan food and agriculture industry, which struggled during the 1990s.

To help Michigan's challenged agri-food sector, which employs more than 1 million persons related to farming, agri-business and food processing, as well as wholesale and retail stores, the Michigan State Legislature and Governor put a unique twist on the original Renaissance Zone program with the creation of Agricultural Processing Renaissance Zones (APRZ) in 2000. These zones are company-specific with developmental agreements. The number of zones was expanded in 2003 by the State Legislature and Governor from the original 10 to 20. These new APRZs are exempt from all state and local taxes just like the original Renaissance Zones for "qualified agriculture processors" who want to expand or begin processing operations in Michigan. They are designed to help utilize and transform Michigan's raw commodities in the state into processed and value-added agriculture products and improve markets and profitability for Michigan growers.

The Michigan Department of Agriculture (MDA) works closely with the Michigan Economic Development Corporation (MEDC) and other partner local agencies to promote, implement and administer APRZs. Overall, the food and agricultural processing companies have committed to creating 1,166 new jobs and $547.75 million in private investment within the 17 designated APRZs during their time frame.

The Renaissance Zone Act is administered by the MEDC. More information and administrative criteria can be obtained from Shannon Crawford, MEDC, at (517) 335-5810 or e-mail: CrawfordS@michigan.org.

For more information on APRZs and the promotional and facilitating role done by MDA, please contact Robert Craig, Director of MDA's Agriculture Development Division (AgD) at (517) 241-2178 or via e-mail at craigr@michigan.gov.

Agricultural Processing Renaissance Zones are company-specific. The following companies have had their property designated as a Renaissance Zone:

Graceland Fruit, Inc.
(Benzie County/Gilmore Township)
Graceland Fruit, Inc. is a fruit manufacturer that processes and freezes fresh and infused fruit and dries various forms of fruits and vegetables. It is anticipated that the company will invest $15 million and create 45 new jobs over the life of the zone.

Oceana County has a total of four Agricultural Processing Renaissance Zones:

Peterson Farms
Processes apples, tart cherries, peaches, asparagus, black sweet cherries and blueberries. It is anticipated that Peterson Farms will invest $15 million and create 225 full-time equivalent jobs over the life of the zone.

Gray & Company
Packages chocolate cordial cherries and maraschino cherries. They are the eighth largest boxed chocolate manufacturer in the United States. It is anticipated that Gray & Company will invest $8.3 million and create 150 jobs over the life of the zone.

New Era Canning
Processes canned green beans, wax beans, pumpkin, asparagus, applesauce, sliced apples, carrots, and many types of dry beans. It is anticipated that New Era Canning will invest $5 million and create 40 jobs over the life of the zone.

Chase Farms
Processes frozen fruit and vegetables. It is anticipated that Chase Farms will invest $21 million and create 55 new jobs over the life of the zone. This 10-year zone was designated September 30, 2005 and will begin January 1, 2006.

Subterra, LLC
(Ontonagon County/White Pine)
Subterra, LLC provides the biopharmaceutical industry with contract growing services for high-value, genetically modified crops, along with bioprocessing and protein extraction services. They currently service biopharmaceutical companies during the pre-clinical/clinical trial state of production. It is anticipated the company will invest $22 million and create 125 new jobs over the life of the zone.

Zeeland Farm Services, LLC
(Ottawa County/Zeeland Township)
Zeeland Farm Services, LLC processes soybean meal for animal feed and soybean oil for cooking and products. It is anticipated that the company will invest $4 million and create 30 new jobs over the life of the zone.

Kellogg Company
(Kent County/City of Grand Rapids)
Kellogg Company processes and produces toaster pastries and cookies. It is anticipated that the company will invest $35 million in equipment, retain 390 jobs and create 43 new jobs over the life of the zone.

Kellogg Company
(Calhoun County/City of Battle Creek)
This new Agricultural Processing Renaissance Zone was designated in July 2004 by the State Administrative Board and became effective in 2005 for a duration of five years. The anchor company in this zone is Kellogg Company. The zone was created as part of the overall incentive package offered to the company to move the Kellogg Snacks Division (formerly Keebler) from Elmhurst, Illinois to Battle Creek, Michigan. One of Kellogg's existing manufacturing operations was placed within the Agricultural Processing Renaissance Zone in exchange for the company to relocate. The relocated Snacks Division will move into current Kellogg facilities in Battle Creek that are not in the zone. As a result of the relocation, however, Kellogg will invest $3.2 million in building renovation and improvements and create 200 jobs in Battle Creek.

Heartland Ingredients, LLC
(Montmorency County/Hillman)
This Agricultural Processing Renaissance Zone became effective in 2003. The anchor company was originally Sunrise Aquaculture, LLC, which planned to invest $8 million and create 30 new jobs. This did not occur. Instead, a company named Heartland Ingredients, LLC, will build a 12,000- to 15,000-square-foot food processing facility in Hillman's Industrial Park. Heartland Ingredients is a contract manufacturer and producer of gluten-free and other allergenic-sensitive food products. Its product line is based on dry-bean derived flour (powder) that is processed to match the custom formulas and product needs of its target customers. The company plans to employ 15-20 people. The food processing facility will cost more that $500,000 to construct and equipment will cost $1.5 to $1.75 million.

Sunny Fresh
(Ionia County/Odessa Township)
This Agricultural Processing Renaissance Zone became effective in 2003. Sunny Fresh Foods will invest $9 million in new plant and equipment and create 25 to 30 jobs. NOTE: THIS SPECIFIC PROJECT HAS NOT OCCURRED. UPDATED INFORMATION FOLLOWS.