©2016 Michigan Economic Development Corporation

Business expansions, community improvement projects, MEGA amendment, Travel Michigan website RFP gain state approval

Tuesday, November 24, 2015

Kathy Achtenberg

Projects will invest $120.6 million, create 258 jobs 

LANSING, Mich. – The Michigan Economic Development Corporation today announced Michigan Strategic Fund approval of business expansions, community improvement projects and a Request for Proposals for the redesign of the official Travel Michigan website, Michigan.org. The projects are expected to generate nearly $120.6 million in new investments and create 258 jobs in Michigan. In addition, MSF approved a revised MEGA agreement with FCA US LLC that encourages the company to invest an additional $1 billion in Michigan while capping the state’s liability on previously authorized tax credits.

“The Michigan Strategic Fund approved a wide range of projects today, including two business expansions in metro Detroit and community revitalization projects around Michigan, as well as a revision to a MEGA agreement that will help us better manage state budgets for years to come,” Gov. Rick Snyder said. “These projects will all promote greater economic opportunities for our businesses and residents. Today’s actions further demonstrate our commitment to Michigan’s comeback, leading to more jobs and better lives for our residents.”

To view a video on today’s projects, visit here: https://www.youtube.com/watch?v=m1yvXEwr5bQ. The Michigan Strategic Fund also approved the following items:

FCA US LLC MEGA agreement:
The Michigan Strategic Fund approved a revised agreement with Chrysler Group, LLC, now known as FCA US LLC, which caps the state's liability for previously authorized job retention tax credits and provides incentives for FCA US to invest an additional $1 billion in Michigan in the future. The MSF resolution, approved today, reduces the term of the Global MEGA Tax Credit by two years, sets annual limits on the tax credit value that may be claimed in a given year, and provides stability and predictability for the timing of payments for annual Global MEGA tax credits throughout the life of the tax credit. As part of the agreement, the company will provide periodic forecasts of its estimated tax credits to the state to assist the MSF and state of Michigan in budget planning.

Rivian Automotive, LLC,
established in 2009, is an automotive design company focused on creating software to be used in next-generation vehicle design. The company plans to establish a research and development center in the city of Dearborn, investing nearly $29.5 million and creating 174 jobs. As a result, the company has been awarded a $1.77 million Michigan Business Development Program performance-based grant. Michigan was chosen over competing sites in California and Florida. The city of Dearborn has offered support to the project in the form of property tax abatement. Individuals interested in career opportunities with Rivian should visit www.rivian.com.

The City of Romulus Brownfield Redevelopment Authority received approval of $1,283,181 in local and school tax capture for non-environmental activities associated with the Packaging Specialties, Inc. (PackSpec) expansion in Romulus. PackSpec is at capacity due to rapid growth and plans to renovate a building near its current facility to consolidate its operations under one roof. The project will generate a total capital investment of $5.6 million and create 50 jobs within the first two years, with an additional 20 jobs added within 10 years. Michigan was chosen over a competing site in Ohio. The tax capture will assist with lead and asbestos abatement activities and substantial exterior and interior demolition costs, as well as demolition costs related to upgrades to heating, electrical and plumbing. The city of Romulus has an Industrial Facilities Tax abatement agreement with the developer which will cap the actual local and school tax capture at $700,000. The project is also requesting $86,175 in tax increment financing for environmental activities from the Michigan Department of Environmental Quality.

The city of Alpena has been awarded $891,591 in Community Development Block Grant funds for façade improvements needed for the Alpena Furniture and Flooring building and the Old Owl restaurant in downtown Alpena. This funding will be part of a façade/housing grant agreement in the amount of $1,291,591, comprised of $891,591 from the MSF and $400,000 from the Michigan State Housing Development Authority. Alpena Furniture and Flooring is a long-standing retail operation in the city. The building will undergo historic renovations and interior improvements that will create 10 residential apartments in the building. The Olde Owl restaurant is also a longtime stakeholder in the city. The new owner plans to make major renovations to both the exterior and interior of the restaurant. The two projects are expected to generate a total private investment of more than $1 million.

NOMI Developers LLC plans to rehabilitate and repurpose a distressed industrial building in the River’s Edge district located between the Kalamazoo River and downtown Kalamazoo. The completed project will consist of a mixed-use development with restaurant space and 47 residential units. The project will generate a total capital investment of nearly $4.5 million and create five full-time jobs, resulting in a $665,000 Michigan Community Revitalization Program performance-based grant.

In addition, the City of Kalamazoo Brownfield Redevelopment Authority has received approval of $605,000 in local and school tax capture to alleviate brownfield conditions at the site and prepare it for development. The city of Kalamazoo is also providing a $250,000 loan from its Economic Initiative Fund.

The City of Lansing Brownfield Redevelopment Authority has received approval of $25,195,280 in local and school tax capture for the SkyVue on Michigan project in Lansing. The project will redevelop a former auto dealership on E. Michigan Avenue into a viable, mixed-use development with 341 market-rate apartments, commercial space and a multi-level parking structure. The tax capture will alleviate brownfield conditions at the site and make it suitable for redevelopment. The project will be undertaken by Lansing Properties I, LLC and will generate a total capital investment of $80 million and create nine full-time jobs.

“It is through the effort of public-private partnerships that today’s projects are taking place, and we’re pleased to support those collaborations,” said MEDC Chief Executive Officer Steve Arwood. “We compete against 49 other states for job-creating expansion projects like these. It is through resources such as the Michigan Business Development and Community Revitalization programs that we are able to drive community and economic development activity throughout Michigan.”

Michigan.org Website Rebuild Request for Proposals
MEDC and Travel Michigan are seeking to re-launch the RFP bid for the rebuild of the Travel Michigan website, www.michigan.org, that the Michigan Strategic Fund board originally approved in March 2015. The purpose for the Request for Proposals was to locate a web design and development organization with a proven record of creating custom web solutions. The new RFP timelines are as follows:

Technical and price proposals must be submitted to the MSF electronically to contractsandgrants@michigan.org by Monday, December 28, 2015 at 3:00 p.m. Proposals will not be accepted via U.S. mail or any other delivery method. Prospective bidders may submit questions regarding the RFP via email by Wednesday, December 2, 2015 by 3:00 p.m. to contractsandgrants@michigan.org. The MSF will not respond to questions that are not received by this date and time. In addition, questions that are phoned, faxed or sent through regular mail will not be accepted. Responses to all qualifying questions will be posted on Monday, December 7 2015 by close of business on the MSF’s website, http://www.michiganbusiness.org/public-notices-rfps/.

Additional details about the RFP will be announced later this week, and the full RFP will be available here: http://www.michiganbusiness.org/public-notices-rfps/.

Pure Michigan is a brand representing business, talent and tourism initiatives across Michigan. These efforts are driven by the Michigan Economic Development Corporation, which serves as the state’s marketing arm and lead advocate for business growth, jobs and opportunity with a focus on helping grow Michigan’s economy.

For more on the MEDC and its initiatives, visit MichiganBusiness.org. For Michigan travel news, updates and information, visit michigan.org. Michigan residents interested in seeking employment with any of Michigan’s growing companies should check mitalent.org, where more than 97,000 jobs are currently available in a variety of industries.

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