LANSING – Criticism of the Michigan Economic Development Corporation and the Michigan Economic Growth Authority could undermine the state’s efforts to attract new companies, the MEDC’s executive committee said in an open letter Tuesday to both the Legislature and press.

The MEDC “is not flawless, but it constantly strives to improve its programs, processes and economic development tools,” the 17 members of the board said.

“Throughout the MEDC’s existence, we have watched as Michigan has gained significant ground in its longstanding effort to establish new industries, retain older ones and set the state onto the path to a more stable and diversified economy. We cannot afford to lose that momentum,” the letter said.

The letter was issued during a time when the MEDC and MEGA have come under attack for issuing a tax credit to a fraudulent company – the head of which was arrested the day after the credit was issued. It has since been revoked, and the agency had to withstand a withering audit of its operations and tracking of its processes and successes.

Economists have differed before legislative committees on the MEDC’s effectiveness. The criticism has brought on discussions raised before that the MEDC should be scrapped in favor of cutting the state’s taxes to attract new business.

The letter was signed by the committee’s chair, Matthew Cullen of Rock Ventures, as well as Phil Power of The Center for Michigan, John Brown of Stryker Corporation, David Cole of the Center for Automotive Research, JoAnn Crary of Saginaw Future, Haifa Fakhouri of the Arab-American and Chaldean Council, Steven Hamp of Hamp Advisors, Paul Hillegonds of DTE Energy, George Jackson of the Detroit Economic Growth Corporation, Birgit Klohs of the Right Place, Tom Lewand of Bodman LLP, Irvin Reid, the president emeritus of Wayne State University, Sanford Ring of Hino Motors Manufacturing, Michael Staebler of Pepper Hamilton LLP and Todd Wyett of Versa Development. MEDC CEO Greg Main did not sign the letter.

Saying with all states fighting for new businesses and jobs across all different sectors, “political in-fighting is a clear warning to business that a state lacks a cohesive climate for economic development and a clear signal to invest elsewhere,” the letter argued.

The letter said the committee members would welcome the chance to work with lawmakers to strengthen the MEDC’s mission, while building consensus on economic policy. There will be differences on how best to drive economic policy, but the state needs to keep economic development from becoming a “partisan or ideological issue that creates unpredictability or instability in our state’s business climate.”

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