.State officials said the 15-year, tax-free designation is expected to retain 390 jobs, create 43 new jobs and spur $35 million in private investment by Keebler.

"Renaissance Zones have proven to be an excellent tool for economic development in Michigan," Michigan Economic Development Corp. president and chief executive officer Doug Rothwell.

Keebler is a wholly-owned subsidiary of the Kellogg Co. The Grand Rapids plant processes and produces toaster pastries and cookies.

Before the agricultural processing renaissance zone was discussed, Kellogg had planned to close the plant to cut costs when the company acquired Keebler in March 2001.

The zones are designated as tax-free for eligible agricultural processing companies that plan to build a new facility or significantly improve an existing facility within the zone. Dan Wyant, director of the state Department of Agriculture, says the plant purchases more than $12 million of Michigan agricultural commodities, including flour, sugar and fruit fillings, annually.