Site Selection Case Study: Behr America

A team from DTE Energy worked with economic development professionals to attract Cabela's to Monroe County, Michigan. The 225,000-sq.-ft. retail center is in Dundee.

Troy, Michigan is like so many other metropolitan suburbs nestled across the United States. Yet with 81,000 residents and a median income of $78,000 (2000 Census), Troy stands out as a balanced community, rich in cultural diversity and economic vitality. Even so, it might be easy to disregard this Oakland County town, located 14 miles outside of Detroit, as the site for a $2 billion mega-industry. But with the assistance of the DTE Energy Economic Development team, Behr America, an automotive supplier of engine cooling modules, components, air conditioning and fan assemblies, opened a new $34-million North American headquarters and technical center in Troy, and has a $15 million climatic wind tunnel under development.
        "Attracting new businesses to our state is an important part of our strategy for growth," said Len Sheppard, DTE Energy's manager of Economic Development. DTE Energy, a leading energy provider, develops merchant power and industrial energy projects, and sells electricity, coal, steam and natural gas. The company's principal subsidiary, Detroit Edison, is the nation's ninth largest electric utility, supplying energy to 2.1 million customers in Southeastern Michigan.
        Behr's first contact with DTE Energy was through a Detroit Chamber of Commerce mission in 1997. A visit to Behr's American headquarters in South Carolina highlighted its three top needs: a site with large electrical capacity that wouldn't require costly substation redesign or new circuits; a high visibility location; and tax breaks. With South Carolina and Ohio also vying for Behr's business, the DTE Energy Economic Development team sprang into action.
        In early 1999, Behr America began preliminary work on siting their new 150,000 square-foot complex. The project was slated to include a wind tunnel, technical center, regional headquarters and seven megawatts of electrical capacity – enough to fuel seven Wal-mart stores. These requirements created a problem as Behr looked to find a site with

DTE ENERGY FAST FACTS:     • In 2001, the DTE Energy Economic Development team completed 270 projects.     • Nearly 20,000 jobs have been created from these projects.     • Almost $4.3 billion in new investments have been brought to Michigan via these projects.     • To contact the DTE Energy Economic Development team, phone 800-845-0320, visit their website at dteenergy.com/business or email econdev@dteenergy.com.

sufficient electrical capacity. DTE Energy's Economic Development team leveraged its resources to bring electrical engineers together with the Michigan Economic Development Corporation (MEDC) and Oakland County officials to find a solution. One of the major tools the team used in the site selection process was the Michigan Site Network (www.MiSiteNet.org), a database of available land and building sites. DTE Energy, the MEDC and the Michigan Economic Developers Association developed the Web-based database that contains full geographical information system capabilities, aerial/ground photography, detailed site information, and brownfield information. More than 200 users update property listings every week. MiSiteNet.org presents a comprehensive real-time look at thousands of commercial and industrial properties in Michigan's 83 counties.
        "Today's business world moves at terrific speed, with executives and administrators alike searching relentlessly for hard data that will enable them to make better-informed decisions," Sheppard said. "In response, we created this statewide database to market available commercial and industrial land sites and buildings. By expanding the database to include brownfield site information, clients can also find properties offering fast-track development with utilities in place," he added.
        Officials in Troy, with the assistance of Oakland County and the MEDC, also set in motion a MEGA (Michigan Economic Development Growth Authority) tax credit. To receive a refundable MEGA tax credit against the Michigan Single Business Tax, a company must be in manufacturing, R&D, wholesale and trade or office operations. In addition it must be financially sound and have solid proposals. Each credit may be awarded for up to 20 years and 100 percent of the amount of the project. The MEGA credit tied to Behr's project included 200 new jobs (direct and indirect) and $33.8 million in capital investments. The city of Troy provided a local tax credit match through road improvements serving the new site.
        "Over the past three years, we have made major investments to better serve our North American automotive customers, including but not limited to, DaimlerChrysler, General Motors and Ford," said Hans Lange, president of Behr America.
        The major investment in Troy couldn't have happened without DTE Energy's Economic Development team. "It's all part of our mission to foster economic growth by encouraging business expansion and attraction," said Sheppard. "We're meeting the needs of the business marketplace by using technology to facilitate development."