EAST LANSING, Mich.-Michigan State University FCU's move of its headquarters to a brand new, off-campus facility freed up enough space at the university to attract an IBM global delivery center, a development that is likely to generate, both directly and indirectly, about 1,500 jobs in the area.
The new center is the first of its kind in the United States, though similar hubs do exist in other parts of the world.
Shortly after its opening, about 100 people will man the new software development center and many of those new workers could come from the East Lansing area. But before the hiring process even begins, the center's very creation is likely to perk up the local economy, which, like the rest of the state, is in dire straits.
"Say, for instance, they bring in their core group that develops the center and it's 25 people. Twenty-five people move to Lansing, 25 people buy houses, 25 people get integrated into the community; that's a very positive development," said MSU FCU VP-Marketing Joyce Banish. "Other groups that want to work with that high-tech business will move here. Activity really breeds activity."
The $1.6-billion MSU FCU had no prior relationship with IBM. Banish credited the development to MSU FCU's involvement Lansing Economic Area Partnership, as well as work on the parts of the university's president and the governor's office. When MSU FCU announced its intention to vacate all office space but its on-campus branch, a tug of war broke out over the precious real estate.
"Space on-campus is a premium; different departments thought it may be a good spot to be," Banish said. "[This] really answers the quandary of what we were going to do with that space. When you think of all the uses possible, this really is the highest and best."
Though the university owns the land, MSU FCU owns the building into which IBM will move and will receive rent payments.
MSU students will also benefit from the deal as IBM has pledged to work with the university's computer engineering school and may offer grants and internships. "The possibilities are really quite endless I think," Banish added.
No timetable for a move-in has been established, but IBM architects are already on the job re-designing the building's interior to suit the company's needs. "They are anxious to get this done," she said.
