Attendees at the news conference in Lansing, Mich., announcing the move sport celebratory T-shirts.
LANSING, Mich. - Google Inc. plans to open offices in the Ann Arbor area that will employ 1,000 people within five years, Gov. Jennifer Granholm and company officials said yesterday.
The Mountain View, Calif., company will use the facility to handle sales and operations for its AdWords online advertising division, which handles "pay-per-click" advertising to users of Google's Internet search engine.
Almost all of Google's revenues are from online advertising.
"Michigan has been Goog-
led," the governor said. "These are jobs that will keep our young people in Michigan."
David Fischer, Google's director of online sales and operations, said the locale makes sense for Google because of the talent pool in the area.
He defended the decision to build in the heart of the Rust Belt. "We don't get caught up in the conventional wisdom, and try to look at things with fresh eyes," he said at a news conference here yesterday.
Google's expansion is part of efforts to extend its lead over Yahoo! Inc. and Microsoft Corp.'s MSN.
Ann Arbor, a city of about 113,000 about 35 miles west of Detroit, is home of the University of Michigan and of a number of high-tech businesses.
Google co-founder Larry Page is a native of East Lansing, where he attended high school, and graduated from UM. Google has a small sales office in Southfield.
"We hope to establish as wonderful a home in Michigan for Google as I enjoyed while growing up," Mr. Page said in a statement.
The state offered Google $38 million in tax breaks over 20 years, should its employment reach 2,000. The Michigan Economic Growth Authority met yesterday morning and approved the incentives.
The Google operations will generate $2.2 billion in personal income for Michigan residents over 20 years at an average weekly wage of $913, the governor's office said in the statement.
Michigan officials learned of Google's efforts to find the new location a year ago, said Liz Boyd, a spokesman for Ms. Granholm. "At that point, Governor Granholm directed our economic development team to do whatever they could to bring those jobs to Michigan," she said.
Google is seeking resumes for the new jobs, McCormick said. The company hasn't decided if it will build or rent the facility, he said, and may opt for a temporary space in the interim. The operation should open by the end of the year, company spokesman Brandon McCormick said.