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Pachuco
F L I N T O I D
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Tax credits approved for sustainable development company to bring headquarters, up to 765 jobs to Flint
By Kristin Longley | Flint Journal
March 16, 2010, 11:59AM
FLINT, Michigan — Up to 765 jobs will likely start coming to Flint now that a sustainable development company has been approved for tax credits that will help locate its headquarters in the city.
The CEO of the company, Renewable and Sustainable Companies (RASCO), said it's likely a matter of six to eight weeks before it officially secures the building and starts bring its operations to 2851 Cole Blvd., near Buick City.
"We’ll start the relocation into the Flint area and begin in earnest the actual recruitment," CEO Rick Short said today.
The $18.5-million project is expected to bring up to 71 jobs in the first year and create up to 765 jobs over the next five years. The facility could also house research and development, an engineering department and assembly operation to build and export its products.
The Michigan Economic Development Corporation estimates the economic activity created by the project will create an additional 1,048 indirect jobs.
The company uses renewable energy sources to bring sustainable essential services, such as Internet, clean water and electricity, to developing nations overseas.
Flint Mayor Dayne Walling said this is a "very exciting" economic development project for the city.
"This will have a major impact on our local economy," he said. "It shows that Flint and Michigan are open for business and are prepared to provide support to companies locating here to help diversify our economy."
RASCO was officially notified of the tax credit during today’s Michigan Economic Growth Authority board meeting in Lansing. The MEGA Board provides refundable tax credits against the Michigan Business Tax to companies expanding or relocating their operations in Michigan.
RASCO's credits are worth up to $9 million over the next seven years.
The tax credit is a significant factor in helping the business locate in Flint, Short said. The state’s growing reputation as a center of the budding renewable energy industry was a key consideration as well, he said.
He said the company was assisted by the Genesee Regional Chamber of Commerce as well as Green Cities Coordinator Steve Montle in the mayor's office.
"To be in Michigan is to be in the center of green opportunity,” he said. “We also believe that there is a trained workforce, from engineers to skilled trades, that’s in abundance here.”
Flint beat out competing sites in Delaware, New York and Virginia for the venture.
According to the company's Web site, it is looking to establish Flint as its base for its sustainable development division, called Integrated Distributed Utilities Network (IDUN).
Short said the company uses renewable energy, such as solar power, to provide essential utilities, such as electricity and clean water, as well as wireless broadband Internet.
The tools will allow people in rural areas in developing countries to enter into "micro-business development" so they don't have to relocate to the cities, Short said.
The company already has established some pilot sites |
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Tue Mar 16, 2010 12:38 pm |
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Pachuco
F L I N T O I D
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Renewable energy company eyes Flint site for up to 765 new jobs
By Kristin Longley | Flint Journal
March 16, 2010, 10:00AM
Click here to view an update on this story.
FLINT, Michigan — A renewable energy and information technology company wants to invest $18.5 million to bring its headquarters and eventually up to 765 new jobs at or near the Buick City site in Flint.
The company, Renewable and Sustainable Companies, LLC (RASCO), is asking for $9 million in tax credits to build a facility for its headquarters at 2851 Cole Blvd.
The facility could also house research and development, an engineering department and assembly operation to build and export its products, according to the state. The company uses renewable energy sources to bring sustainable essential services, such as Internet, clean water and electricity, to developing nations overseas.
RASCO expects to create up to 71 new jobs in the first year, and up to 765 new jobs over five years if it expands, according to the Michigan Economic Development Corporation.
The tax credits for the company were scheduled to go before the Michigan Economic Growth Authority at 10 a.m. today. The credits would be worth up to $9.1 million over seven years, but the company is expected to generate more than twice that in state government revenue, according to the state.
The average weekly wage for the newly created jobs is projected to be $559, and the company will also offer healthcare benefits, according to the MEDC.
"We’re just really happy to be a part of the reinvention of that automotive debacle," said Rick Short, the company's chief executive officer. "This truly is a win-win situation for us."
There are not any other Michigan businesses known in the same industry, state documents show.
According to the company's Web site, it is looking to establish Flint as its base for its sustainable development division, called Integrated Distributed Utilities Network (IDUN).
Short said the company uses renewable energy, such as solar power, to provide essential utilities, such as electricity and clean water, as well as wireless broadband Internet.
The tools will allow people in rural areas in developing countries to enter into "micro-business development" so they don't have to relocate to the cities, Short said. The company already has established some pilot sites.
He said urbanization is a problem in developing countries because the infrastructure is fragile.
"Mid-Michigan and Flint are truly the birthplace of the middle class of America," he said. "What better place to export sustainable development and economic hope to other parts of the world?" |
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Tue Mar 16, 2010 12:40 pm |
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Pachuco
F L I N T O I D
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New sustainable development company would bring 'wide spectrum' of jobs to Flint
By Kristin Longley | Flint Journal
March 16, 2010, 1:15PM
FLINT, Michigan — A new company planning to locate its headquarters and up to 765 jobs in Flint will be recruiting for a "wide spectrum" of positions, the CEO said today.
Rick Short, chief executive for Renewable and Sustainable Companies (RASCO), said it would start relocating and recruiting in Flint after the company secures the 29-acre property at 2851 Cole Blvd., near Buick City. That could be a matter of six to eight weeks, he said.
Many of the jobs will be for manufacturing, packaging and readying its products to be shipped mainly to countries in Africa, he said.
The company uses renewable energy sources to bring sustainable essential services, such as Internet, clean water and electricity, to developing nations overseas.
The company cleared a major hurdle in locating to Flint today after the state approved RASCO for $9 million in tax credits for up to seven years.
Some of the employees to be hired will be what Short called "remote monitoring staff." The company's technology will allow employees in Flint to monitor the company's facilities in Africa, he said.
There will also be positions in administration, marketing as well as research and development, he said.
The company has been introduced to officials at Kettering University, he said.
"Kettering has a great history of research and development," he said. "We certainly would like to leverage that, as well as resources at (the University of Michigan and Michigan State University)."
Flint Mayor Dayne Walling said the city is looking forward to having the business become established in Flint.
"It will provide jobs directly through the company, but also through related companies and services," Walling said. "And the jobs are a great fit for Flint's workforce."
The average weekly wage for the newly created jobs is projected to be $559, and the company will also offer healthcare benefits, according to the Michigan Economic Development Corporation.
Tim Herman, CEO of the Genesee Regional Chamber of Commerce and a member of the state board that approves the tax credits, said he welcomes the opportunity to help lure and expand businesses here.
“From a business perspective, we know that the Flint area offers a compelling package of talent, infrastructure and other amenities where companies can grow and prosper,” he said. |
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Tue Mar 16, 2010 1:25 pm |
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munnbreslin
F L I N T O I D
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| Great News! Good job MEDC, Mr. Montle, RASCO, and everyone involved. This is great for the Flint community! Now lets just knock on as much wood as possible until we see an open sign haha. |
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Tue Mar 16, 2010 3:04 pm |
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Pachuco
F L I N T O I D
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| Thanks MunnBreslin for your excitement and enthusiasm about this, but it's a shame that positive stories like this don't attract as many comments and attention as other stories on this forum... But yeah, let's go Flint! Let's make stories like this more of the norm, great job to the MEDC, Regional Chamber, Mr. Montle, and anyone else who helped make this a possibility, especially the developers who are actually bringing the jobs! |
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Wed Mar 17, 2010 8:31 am |
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Dave Starr
F L I N T O I D
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| Take a look at the Journal's web site - it's now full of articles about the head of RASCO not disclosing he was a convicted felon when he applied for the tax credits. Convicted of embezzlement, owes 96K in restitution, etc. |
_________________
I used to care, but I take a pill for that now.
Pushing buttons sure can be fun.
When a lion wants to go somewhere, he doesn’t worry about how many hyenas are in the way.
Paddle faster, I hear banjos. |
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Wed Mar 17, 2010 2:31 pm |
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munnbreslin
F L I N T O I D
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| This is too bad. Lets hope no laws were broken or that the Christian ideology of second chances shines through. And I can, unfortunately, garuntee that now that a positive story has turned negative, the comments will pile up. This will truly show the colors of Flint Talk unfortunately. Here it comes. |
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Wed Mar 17, 2010 3:20 pm |
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Pachuco
F L I N T O I D
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| These latest developments are very frusterating and dissapointinting to say the least... But Munn, you was right, as soon as this became negative, someone posts about it... True colors indeed... |
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Wed Mar 17, 2010 4:45 pm |
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Pachuco
F L I N T O I D
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| That being said.... I honestly do pray something will work out so this project is able to moved forward, someway, somehow... It would mean so much for our city. |
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Wed Mar 17, 2010 5:00 pm |
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Dave Starr
F L I N T O I D
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quote:
Pachuco schreef:
That being said.... I honestly do pray something will work out so this project is able to moved forward, someway, somehow... It would mean so much for our city.
With the head of the company being arrested for possible parole violations, a legislator demanding that the credit be rescinded immediately, and other issues, it isn't looking very promising. |
_________________
I used to care, but I take a pill for that now.
Pushing buttons sure can be fun.
When a lion wants to go somewhere, he doesn’t worry about how many hyenas are in the way.
Paddle faster, I hear banjos. |
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Wed Mar 17, 2010 5:36 pm |
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Dave Starr
F L I N T O I D
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quote:
Pachuco schreef:
These latest developments are very frusterating and dissapointinting to say the least... But Munn, you was right, as soon as this became negative, someone posts about it... True colors indeed...
The media, and everyone else, should have just ignored it? |
_________________
I used to care, but I take a pill for that now.
Pushing buttons sure can be fun.
When a lion wants to go somewhere, he doesn’t worry about how many hyenas are in the way.
Paddle faster, I hear banjos. |
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Wed Mar 17, 2010 5:37 pm |
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Dave Starr
F L I N T O I D
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quote:
munnbreslin schreef:
This is too bad. Lets hope no laws were broken or that the Christian ideology of second chances shines through. And I can, unfortunately, garuntee that now that a positive story has turned negative, the comments will pile up. This will truly show the colors of Flint Talk unfortunately. Here it comes.
And the State Police should have just ignored the possible parole violation? The courts should cancel the restitution he owes? |
_________________
I used to care, but I take a pill for that now.
Pushing buttons sure can be fun.
When a lion wants to go somewhere, he doesn’t worry about how many hyenas are in the way.
Paddle faster, I hear banjos. |
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Wed Mar 17, 2010 5:39 pm |
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Pachuco
F L I N T O I D
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| In what way did I ever imply that????? I am frusterated because just yesterday our city was on the track to recieve almost 800 new jobs in the center city, and because of a man's dumb mistakes, it may all be in jeopardy. But hey I guess I am just wrong for be enthusiastic about whay good news this had sounded yesterday, I suppose I should buy a police scanner, randomly blog about city goverment on a site, and complain about evertything our civic leaders do and see the world throught a narrow scope. |
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Wed Mar 17, 2010 6:32 pm |
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twotap
F L I N T O I D
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quote:
I suppose I should buy a police scanner,
Well if you want to hear whats happening, wheres its happening, and whos involved thats a good idea. |
_________________
"If you like your current healthcare you can keep it, Period"!!
Barack Hussein Obama--- multiple times. |
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Wed Mar 17, 2010 7:49 pm |
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untanglingwebs
El Supremo
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Lori Dougovito
More: Bio, E-mail, News Team
FLINT (WJRT) -- (03/17/10) -- Tuesday, Rick Short shared the stage with Governor Jennifer Granholm as she announced millions of dollars in state tax credits for a business he wants to bring to Flint.
Today, word is out that he's a convicted felon and still on parole.
Early this afternoon, Short, who claims to be the CEO of RASCO, was taken into custody in Genesee County by Michigan Department of Corrections investigators and Michigan State Police.
State officials are not yet talking about what happened here or if they knew about his history and his past fraudulent financial dealings.
Related Content
Story: 'Green' company looks at Flint for headquarters
The governor yesterday joked with Short as she was announcing his company RASCO being awarded $9.1 million in tax credits.
"They have plans to hire 765 people directly, 71 in the first year with an $18.5 billion ... must be ($18.5) million investment, unless you're really going big," the governor said as she joked with Short.
Short said yesterday that he was proud to be part of the new, 21st-century Flint. He was raised in Flint, after all.
He did not mention that he also spent time in jail in the vehicle city stemming from incidents in Oakland and Genesee Counties.
According to Genesee County Prosecutor David Leyton and transcripts from a court hearing, the late 1990s, Short tried to remortgage his marital home while he and his wife were seperated. He did that in Oakland County, apparently signed her name and then cashed the $73,000 check in Genesee County.
After that, he spent time in prison for embezzling money from a business in Norton Shores in Muskegon County.
"All in all, you have three fraud-based convictions and a man who got $9 million in tax credits from the state of Michigan," Leyton said.
Short is on parole now, and according to a corrections spokesman, owes $96,000 in restitution and never reported that he was working again.
Dougovito personally spoke with Short several times yesterday and today. She says he denied he had been in prison yesterday. Today he admitted he had some legal issues in his past and had even scheduled an in-depth interview for tomorrow.
"It was a plea back in 1999. The original charges were forgery and uttering and publishing, and it was reduced to an attempt uttering and publishing. He defrauded a mortgage company," explained Leyton.
It's not clear if state officials knew his history. "It's not all that hard to find out this person's background. All we had to do was go on a computer and find it. So, I suspect someone didn't do their homework," guessed Leyton.
Statement from Flint Mayor Dayne Walling:
"Mr. Short met with my staff on a number of occasions beginning approximately 6 months ago. During these meetings Mr. Short shared his business model and expressed his interest in establishing his company's headquarters in the City of Flint. My staff provided basic information about tax incentives and doing business in Flint.
Because there has not been any direct action by the City of Flint, we had not yet performed our own background check or financial analysis of Mr. Short of RASCO, LLC. These two processes are performed during the final stage of our due diligence investigation into any potential economic development project seeking tax incentives from the city. As a result of not yet entering into this final stage of our investigation, we were unaware of Mr. Short's legal issues."
Dayne Walling
Mayor
City Of Flint
Statement from Gov. Jennifer Granholm's office:
"Governor Granholm was informed of the details surrounding Mr. Short and RASCO early this afternoon. She is disappointed, and the MEDC has been directed to review its procedures and processes to ensure that this does not happen again, which they are in the process of doing. The MEGA tax incentives have proven to be a great incentive for creating jobs, and it would be unfortunate if the program was in any way diminished by this incident.
"It bears noting and repeating that the state has lost nothing from yesterday's approval of the MEGA for RASCO, which is now on hold. There is no up-front cash involved in this award, and the state has not granted any funds to this company or any other MEGA awardee."
Statement by Greg Main, MEDC President and CEO, regarding RASCO, LLC:
Among 13 projects approved yesterday for tax credits by the Michigan Economic Growth Authority, one was awarded to RASCO (The Renewable and Sustainable Companies).
We have since been advised that a person identified by the company as "Principal & Chief Executive Officer," Richard (Rick) Short is currently on parole after being convicted and serving two years in prison for financial fraud.
We are advised that Mr. Short is under investigation for possible parole violations. It bears noting and repeating that the State has lost nothing from yesterday's approval of the MEGA for RASCO.
There is no upfront cash involved in this award and the State has not granted any funds to this company or any other MEGA awardee.
When a MEGA award is approved, the company and the state agree it will receive tax credits when it reaches investment and job creation or retention measures as spelled out in the agreement.
There is no cash involved as part of the MEGA award except an application fee paid by the company. The MEGA award is performance-based and costs the state nothing if the company fails to meet the terms of its agreement.
No one associated with the Michigan Economic Development Corporation and the Michigan Economic Growth Authority (MEGA) was aware of Mr. Short's personal history.
The MEDC conducts due diligence on all MEGA applications prior to submission for consideration by the MEGA board. Included in the company's MEGA application is a requirement for disclosure of any current, pending or expected legal action that may impact the company's ability to meet the obligations set forth in the MEGA agreement.
There was no disclosure by the company of Mr. Short's ongoing parole requirements and supervision.
In this light, we will add to the MEGA application a more explicit requirement of the company that it disclose any prior felony convictions by senior company executives.
In addition we will perform a background check of all company officers prior to any final MEGA award.
Needless to say we are embarrassed by this matter. We work hard to grow, expand and attract business in Michigan and are proud of our achievements. We are taking the anecessary steps to ensure situations such as this do not happen in the future.
(Copyright ©2010 WJRT-TV/DT. All Rights Reserved.) |
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Wed Mar 17, 2010 8:19 pm |
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