Tuesday, May 15, 2007
Michael Shore, MEDC
Projects Expected to Involve $90 Million in New Investment
Governor Jennifer M. Granholm today announced plans for two major redevelopment projects attracting nearly $90 million in new investment and creation of up to 3,680 jobs. The former Steelcase industrial operation in Grand Rapids will be converted to a mixed-use commercial, residential and light industrial complex. In Holland, a surface parking lot will be the site of a new office building. The brownfield redevelopments will benefit from assistance provided by the Michigan Economic Development Corporation.
City of Grand Rapids Developer Ashley Capital will use a state brownfield tax credit of $5,425,368 to redevelop a 206.4-acre industrial property formerly owned by Steelcase located at 36th and 44th streets and Eastern Avenue. The project, to be undertaken in 12 phases, requires demolition of three obsolete factories, redevelopment of 15 industrial and support structures plus construction of a mixed-use retail, R&D and light industrial complex. The development will lead to creation of nearly 3,600 jobs.
The MEDC previously approved state and local tax capture valued at $12,661,770 to support the project, announced on March 13, which has been reduced to $7.6 million due to site plan revisions. The initial investment amount of $145 million has been scaled down to $80.6 million with an estimated 3,600 jobs created, instead of the 3,960 originally announced.
City of HollandState and local tax capture of $702,000 will support removal of an existing parking lot to make way for construction of a 37,500-square-foot office facility and 50 to 70 parking spaces. Total capital investment of up to $9 million is expected with creation of up to 90 jobs.
The Grand Rapids and Holland brownfields are two of six economic development projects Granholm announced today. In all, they are expected to create and retain a total of 5,420 Michigan jobs. Michigan brownfield programs provide incentives to invest in property that has been used for industrial, commercial or residential purposes and to keep that property in productive use or return it to a productive use. Brownfield incentives can be used for functionally obsolete, blighted, or contaminated property.
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