Michigan Launches Export Initiative to China

Below is an announcement from MEDC about an opportunity to increase exports:

Michigan consumer goods companies interested in reaching new customers in the fastest growing economy in the world will have an opportunity to take part in a new exporting pilot program offered through a partnership between the export services company Export Now and the Michigan Economic Development Corporation. 

The Pure Michigan Export Now pilot program will help consumer-product companies in the state sell their products directly to Chinese consumers via the world’s largest Internet-based sales platform. The program will be detailed in four informational forums taking place around the state in April.  

“Export Now’s unique combination of services further broadens the state’s Pure Michigan Business Connect program by reenergizing the focus on exporting and economic gardening,” said MEDC President and CEO Michael A. Finney. “This unique exporting program builds on Governor Rick Snyder’s mission to China last fall, where we met with government officials and business leaders to bring new job-creating investments here and open doors for Michigan businesses.” 

Export Now provides an end-to-end IT and logistics solution that enables Michigan companies to sell on China’s e-commerce platform, www.tmall.com, as easily as selling on similar and familiar U.S. e-commerce platforms at home. Michigan companies will be able to participate in the first-ever mass marketing of Michigan goods to China in a single place through the Pure Michigan department in the online store.

With support from MEDC and Export Now, the first 100 Michigan companies to sign up for the program will pay only $1,000 and use the service for one year, two-thirds less than the usual $3,000 charge. Michigan companies will ship goods on consignment to an Export Now depot in California, where shipments are consolidated and forwarded to Export Now’s Shanghai distribution center. All companies pay a transaction cost with each sale.  

“Today’s announcement opens up one of the world’s largest markets to Michigan’s food and agriculture businesses,” said Michigan Department of Agriculture and Rural Development Director Keith Creagh. “Our state’s high quality food and agriculture products are sought by Chinese consumers. This pilot program utilizes technology to provide a new innovative export opportunity for Michigan’s food and agriculture companies as they explore new markets.”  

Frank Lavin, CEO of Export Now, said that the partnership with the State of Michigan demonstrates the crucial role exports play in economic development.  

“New customers mean more sales and that translates into jobs,” Lavin said. “Through our unique e-commerce solution, we eliminate the challenges of language, culture and regulation that prevent many small businesses from entering new markets.” 

“We’re the first state in the country to be doing this,” Michigan Economic Development Corporation (MEDC) Senior Vice President of Business and Community Development Doug Smith said to host Carol Cain during a taping of CBS 62’s Michigan Matters. “From our standpoint, it’s an exciting way to test the Chinese market.”  

Visit here to learn more about Pure Michigan Export Now. Visit the links below to learn more about Carol Cain’s take on the program:

http://www.freep.com/article/20120401/COL24/204010443/Carol-Cain-Michigan-program-helps-small-businesses-sell-in-China 

http://detroit.cbslocal.com/2012/04/01/wanted-100-michigan-firms-with-china-dreams/ 

http://detroit.cbslocal.com/2012/03/31/snyders-china-plan-hits-paydirt/#.T3dlMGZycO0.email

New Sludge Tank

This picture shows the rebar going up for the walls of a new sludge storage tank at the Wastewater Treatment Facility (WWTF).  The approximately $3.5 million dollar WWTF construction contract was awarded to the low bidder--Meridian Contracting Services, LLC  of Alpena. 

The project is possible because of a low interest rate loan from the United States Department of Agriculture -- Rural Development (USDA-RD).  USDA-RD was able to offer the City a rate of 2.35 percent for 40 years.  Using provisions of the "Build America Bonds," the interest rate was reduced to 1.54 percent.

Also, the Michigan Economic Development Corporation (MEDC) provided a grant of $750,000 toward the WWTF project.

USDA Sewer Project in Full Swing

Here is a picture of renovation work in progress on the main building of Rogers City's Wastewater Treatment Facility (WWTF).  This project is made possible by the United States Department of Agriculture--Rural Development (USDA-RD),  a grant from the Michigan Economic Development Corporation (MEDC), and our customers in Rogers City.  Merridan Construction of Alpena is doing the renovation work.  

Thanks to USDA-RD, MEDC, and to you, our sanitary sewer customers in Rogers City.  Thanks also to Ray Hansen, Rob Kortman, and Josh Fleming at the WWTF:  "They deal with things scary to make Rogers City sanitary."

The purpose of the WWTF renovation project is to provide safe, environmentally responsible, and efficient sanitary sewer service to our customers for decades into the future.  If you want to learn more about the renovation of the WWTF, please contact me.

City Closes on Water and Sewer Loans

On August 11, 2010, Rogers City closed on two loans from the United States Department of Agriculture (USDA) Rural Development (RD) to make improvements to City water and sewer systems.  The water system loan is for $3,098,000.  These funds will pay for the work to replace 12% of the water main system, build a new water tower, and drill a replacement well.  The sewer system loan is for $3,771,000.  It will pay to rebuild the Wastewater Treatment Facility, install a new sewer lift station, and replace 4% of the sewer main system.  The loans are actually municipal revenue bonds.  Due to USDA-RD's low interest rate and due to provisions of the Build America Bonds Legislation, the effective interest rate for Rogers City's bonds is 1.55% for 40 years.  The bonds will be repaid from water and sewer fees to system customers.  A grant from the Michigan Economic Development Corporation (MEDC) in the amount of $750,000 will also be used to pay for sewer system work. 

While no one wants to pay increased water and sewer rates, the rate increase was necessary to keep the water and sewer systems working safely.  The new rate went into effect in April 2010.  The work will begin over the next two weeks and will last for over a year.

Along with the rate increase, there was a change in the billing practice.  Customers are now charged a base rate, regardless of the on/off status of their service or metered consumption.  This base rate ($38.25 per month) reflects the cost to be able to turn on/off your water service and dispose of your wastewater.  The largest part of the cost to operate the water and sewer systems is the infrastructure to deliver the water and sewer and safely process it.  There is now no charge to turn on or turn off service. 

The rate increase makes the average customer's bill (for water and sewer) approximately the same as the average customer in Cities throughout the State of Michigan. 

If you have questions about infrastructure, water and sewer service, rates, or the Revenue Bonds, please contact me.