LANSING - Legislation to add jobs to Michigan was approved by the Senate Committee on Economic Development, Small Business and Regulatory Reform Wednesday, said state Sen. Cameron S. Brown, R-Fawn River Township.

Senate Bill 175 will allow distribution and warehousing facilities to take advantage of a 12-year property tax abatement similar to what is currently offered to industrial properties in Michigan.

"Senate Bill 175 is one step in the right direction," said Brown, sponsor of the legislation.  "We need to do everything in our power to make Michigan competitive so that companies want to set up shop and do business in our state, especially in our border communities.  There is no reason we should give away opportunities to Indiana and Ohio.  If they have a program to attract industry, we need to match it and exceed it."

As proposed by Brown, the bill would amend the Plant Rehabilitation and Industrial Development Districts Act to permit local units of government to extend property tax abatements to property used for "qualified commercial activity."

Brown decided to sponsor the bill after being approached by St. Joseph County Economic Development Corporation Executive Director Dave Allen regarding a lost opportunity.

St. Joseph County had an opportunity in 2003 to bid on a 400,000 square foot warehousing/distribution center that would have generated approximately 400 high paying jobs and would have resulted in a $15 million investment.

"Though property in White Pigeon was a finalist for this project, we ultimately lost out to a site in Kendallville, Ind. because of their ability to offer an abatement on a warehousing/distribution project," Allen said.  "Indiana offered a better long term incentive package anchored by their ability to abate a distribution/warehousing project."

To qualify, companies would have to meet the following criteria:

"We are losing high paying jobs that Michigan residents desperately need because we are not competitive," Brown said. "The people of Michigan need to be well served in this struggling economy and the Legislature has an obligation to provide leadership.  This proposal will help put jobs north of the Indiana, Ohio and Michigan state line and I hope the governor signs the bill."

Approved by the Senate Committee on Economic Development, Small Business and Regulatory Reform, SB 175 will now go before the full Senate for a vote.