La-Z-Boy announced in January that it planned to build a $50 million global headquarters in Monroe after threatening to build elsewhere unless the taxpayers of Michigan pony up and that’s exactly what the state did through its “failed” (MEDC) Michigan Economic Development Corp.
The company’s third-quarter profit soars! Michigan-based La-Z-Boy said Tuesday its operating income was up 37 percent in the fiscal 2013 third quarter, to $23.3 million, compared with $17 million in the same quarter of 2012. The company ended the quarter with $112 million in cash and equivalents. Net income attributable was $17.1 million, or $0.32 per diluted share, which included $0.04 relating to gains on the sale of investments and a related tax benefit.
The company was courted by Ohio and other Michigan cities to relocate, but chose to stay in Monroe after the (MEDC) Michigan Economic Development Corp. offered up to 12.7 million in help to build its new headquarters. La-Z-Boy has been located in Monroe since its founding in 1927.
La-Z-Boy Awarded $3.7 Million “Plus” from the Michigan Strategic Fund
Furniture maker plans to build a new world headquarters in Monroe after state approval this week on a $3.7 million incentive package. This “taxpayer funded” package could be worth $12.7 million over nine years when the package’s grants and tax breaks are combined and that is contingent on La-Z-Boy adding “50” jobs.
Dan Swallow, director of economic and community development for Monroe, said the two grants and the tax abatement were paramount to keeping La-Z-Boy fully committing to staying in Monroe. The company had stated it would remain in Monroe if everything could be worked out, but if it couldn’t, it might be forced to go to another county or state.