They're Staking Bets
On Detroit's Prosperity

JULIE EDGAR STAFF WRITER

T

housands of businesses
have called the city of De-
troit to inquire about lo-
cating in the
Empowerment Zone, an 18-
square mile area that has been
designated to receive millions of
dollars to attract businesses and
individuals.
At least one corporation has
already staked a claim, taking
advantage of low-interest fi-
nancing through the Michigan
Strategic Fund.
Ace-Tex Corp., owned and op-
erated by Irving and Martin Lak-

company was founded by the
Lakers' father Harry in 1946.
Irving Laker says the compa-
ny, which manufactures tack
rags, supplies linens and rents
uniforms that are lint-reduced,
has grown by 20 percent over the
last two years, primarily as a re-
sult of a strong auto market. Ace-
Tex exports its wiping cloths to
Mexico and Canada.
But the Laker brothers had
contemplated moving operations
out of state.
"We were wooed by many
states to bring a portion of our

&AV_

ACE-TEX CORPORATION
& THE CITY OF DETROIT
Break Ground In
THE EMPOWERMENT ZONE

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Irving and Marty Laker of Ace-Tex Corp.

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er, has already broken ground
near its current site off Warren
Avenue near 14th Street for a $3
million, 100,000-square-foot
building that will be home to Ace-
Tex's Mechanics Uniform Rental
Company.
They believe theirs is the first
company in the country to receive
financing via empowerment zone
tax exempt facility bond financ-
ing.
The $3 million in tax-exempt
bonds will result in a $5 million
investment in Detroit, says at-
torney Donald Wagner, whose
firm, Kramer Mellen P.C., han-
dled the financing transaction for
Ace-Tex. The company, which
has branches throughout the
country and employs 650 here in
Detroit, will add at least 100
more jobs by the time both phas-
es of construction are finished in
about two years, said Irving Lak-
er.
In the meantime, Ace-Tex will
pass its 50th year in the city. The

business to them. The view was
if we couldn't get the economics
that were best suited to us, there
was a possibility we'd take the
work into other regions. The em-
powerment zone came as an of-
fering from the city, and our
plant happened to be in the em-
powerment zone," Irving Laker
explained.
Comerica Bank is backing up
the project with letters of cred-
it.
`The fact that we're hiring peo-
ple in the empowerment zone
was helpful in attaining financ-
ing, and our ability to get people
trained and (bank) credits made
it attractive to stay in the city.
The program accelerated what
we might have done anyway,"
Mr. Laker continued.
Kate Levin of the Empower-
ment Zone Transition Office said
the city has not formally tracked
the number of businesses that
plan to take advantage of lower-
interest financing and tax abate-