Tuesday, December 19, 2006
Michael Shore, MEDC
Projects Involve $950 Million in Capital Investment
Governor Jennifer M. Granholm today announced the Michigan Economic Development Corporation (MEDC) is helping mortgage processor LenderLive Network Inc. expand in Troy and is also backing 11 redevelopment projects in Detroit, Benton Harbor, Grand Rapids and Kalamazoo with support from the Michigan State Housing Development Authority. In all, the projects are expected to create 2,317 new Michigan jobs and involve more than $950 million in capital investment.
"We are continuing to work to create jobs and grow Michigan's economy, and these projects are another great signal that our work is beginning to pay dividends," Granholm said. "These new jobs and investments will help to strengthen these communities and continue to make Michigan a place people want to live and do business."
The 12 projects announced today:
- LenderLive Network Inc.will invest $7.4 million to expand its current facility in Troy with the addition of a 30,000-square-foot data and operations center over the next five years. The project will create 847 new jobs, including 350 directly by the company. A state tax credit valued at more than $4 million over six years helped convince the company to choose Michigan over other potential sites in Colorado, Florida and Texas. To support the expansion, the city of Troy has proposed a package of incentives estimated at $20,000 including a jobs fair for the company, paying all occupancy permit fees and providing community center memberships for new company employees in addition to tenant improvements to the site.
- Griswold ~ Capital Park– Developers 150 Michigan Ave LLC and Griswold Capital Park LLC will use a $3.6 million state brownfield tax credit to redevelop a site at the northwest corner of Michigan Avenue and Griswold in Detroit's Central Business District. The 13-story mixed-use development will include 80 condos built on top of a planned 500-space parking ramp. Total investment is estimated at $47.3 million and will result in creation of 12 jobs.
- Book Tower –Northeast Commercial Services Corporation will use a$3.5 million state tax credit and state and local tax capture valued at $4.7 million for a project contributing to the revitalization of Washington Boulevard in Detroit. The 13-story Book Building and the 36-story Book Tower, dating from 1918 and 1925 respectively and now functionally obsolete, will be redeveloped into a mix of 175 condos and 108,000 square feet of commercial office space. The first two floors of both building will be converted to an atrium, fitness facility and restaurant. A total of 140 jobs will be created on private sector investment of $35 million.
- Studio One/Wayne State –Brownfield incentives including $7.5 million in state and local tax capture and a $1.9 millionstate brownfield tax credit will be used by developer Studio One Apartments LLC to redevelop a former industrial site in Detroit bounded by Woodward Avenue, Canfield, Cass and Forest at the south edge of the Wayne State University campus and across from the Detroit Medical Center. The project includes a five-story building with retail space, 130 apartments and an 800-space parking ramp. Studio One will invest $19.5 million in the project, which is expected to create 65 new jobs. In addition, Wayne State University will invest approximately $11 million to construct the parking ramp.
- Fox Creek –Far East Side Development LLC will use brownfield incentives including $55 million in state and local tax capture and a $3.7 millionstate brownfield tax credit toward a massive reclamation of a largely vacant and tax-reverted 140-acre area in Detroit bordered by Kercheval, Eastlawn, East Jefferson and Alter to include a mix of 700 residential units and commercial development. The project is expected to result in creation of three jobs and private investment of $40.6 million.
- Uniroyal –A $10 million Brownfield SBT credit and state and local tax capture valued at more than $121.4 million will be used by Bettis/Betters Development LLC to transform the 43-acre former Uniroyal industrial site in Detroit on E. Jefferson Avenue at the foot of the Belle Isle Bridge into a neighborhood ringed with four-to-six story residential developments comprising more than 1,000 condos, town homes and apartments. The project will involve approximately $506 million in capital investment and create 1,000 jobs.
- 1200 6th Street – The city of Detroit will use $18.9 million in state and local tax capture to demolish the former State of Michigan office building at 6th and Howard to make way for a new five- or six-story office building, parking structure and auxiliary building, all to be leased to the Federal Bureau of Investigation. The proposed redevelopment will involve $100 million investment in the site by a developer to be determined by the federal General Services Administration.
- Grand Van Dyke – The city of Detroit will use $2.1 million in state and local tax capture to redevelop the Foodtown Plaza site at 7811 Gratiot Avenue into a new neighborhood shopping area with grocery store, retail space and parking. The project is expected to create 100 jobs and involve $9 million in capital investment.
- Jefferson Village– With the commercial portion of the "Shops at Jefferson Village" project completed earlier, the city of Detroit will use $3.5 million in state and local tax capture to continue development, including 325 residential units, to be preceded by infrastructure improvements including a new seawall and/or levee system. Private sector investment as a direct result of removing the project area from any future floodplain map revisions is estimated at $81.2 million.
- Harbor Shores Community Redevelopment Inc. -A $9.2 million state brownfield tax credit will be used to construct a hotel/water park and new housing in Benton Harbor as part of the Harbor Shores project. Existing buildings will be demolished and environmental contamination will be addressed to make way for the 90,000-square-foot hotel/water park and 102 single-family and residential town homes. This portion of the project is expected to involve approximately $100 million in capital investment and create 118 new jobs. In October, state and local tax capture of $95.3 million was approved for the Harbor Shores project, which will also include a golf course and other commercial/retail and recreational opportunities. The overall project is expected to involve more than $500 million in private investment and create 2,000 new jobs in the Benton Harbor/St. Joseph area when completed.
- City of Grand Rapids- State and local tax capture valued at $406,200 will help BSG Group LLC demolish an obsolete building located at 818 Butterworth St. and construct new corporate offices, a production center and retail showroom to be used by BSG Group and Eastern Floral. The developer will invest $2 million in the project, with is expected to create up to 12 new jobs.
- City of Kalamazoo - State and local tax capture valued at $69,700 will be used by Kalwards LLC to transform the former Neil's Automotive building on 167 E. Kalamazoo Ave. into new commercial and retail use. The developer will invest more than $2.3 million to make building and infrastructure improvements. The project is expected to create up to 20 new jobs.
"These projects cap a very successful year for Michigan," MEDC President and CEO James C. Epolito said."Winning the LenderLive expansion against stiff out-of-state competition and securing these quality-of-life-changing redevelopments says a lot about our commitment to create world-class communities that help businesses and residents thrive."
In her 2006 State of the State address, Granholm emphasized the importance of making Michigan a global economic powerhouse in the 21st century. Since January 2005, the governor and the MEDC have announced the creation or retention of more than 164,000 jobs as a result of targeted assistance provided by the MEDC.
"The partnership between MEDC and MSHDA has been extremely successful this year," MSHDA Executive Director Michael R. DeVos said. "The incredible number of jobs and the massive amounts of capital investment positively impacts everyone in the entire state as well as the cities, towns and villages where they live."
The Michigan Economic Development Corporation, a partnership between the state and local communities, promotes smart economic growth by developing strategies and providing services to create and retain good jobs and a high quality of life.
MSHDA is a quasi-state agency that provides financial and technical assistance through public and private partnerships to create and preserve safe and decent affordable housing, engage in community economic development activities, and address homeless issues. MSHDA's loans and operating expenses are financed through the sale of tax-exempt and taxable bonds and notes to private investors, not from state tax revenues. For more information on MSHDA programs and initiatives, visit the Web site at www.michigan.gov/mshda.
For more information on the MEDC's MEGA (Michigan Economic Growth& Authority) program, click here.
For more information on the MEDC's brownfield incentives, click here.
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