Tuesday, August 23, 2005
Michael Shore, MEDC
Redevelopments to Spur $70.6 Million in Investment, Create 318 Jobs
Governor Jennifer M. Granholm today announced the state will help transform vacant downtown sites in Detroit and East Lansing into new housing, retail, commercial and office developments, creating up to 318 new jobs. The projects are expected to generate more than $70.6 million in private investment due to state and local brownfield tax capture incentives approved by the Michigan Economic Development Corporation.
"These rehabilitation projects in Detroit and East Lansing are creating investment and job opportunities using properties once thought too costly to redevelop," Granholm said. "These investments are key to our ongoing effort to revitalize our community cores and create truly cool cities statewide."
The city of Detroit will utilize state and local tax capture valued at $8.1 million to help redevelop the Argonaut building in Detroit's New Center area to accommodate housing, commercial and retail opportunities. Developer Orton Development, Inc./Midway Corporate Plaza LLC will invest $67 million to restore and rehabilitate the historic 11-story building to include 275 one- and two-bedroom lofts, 84,000 square feet of office space and about 15,000 square feet of retail shops and parking facilities for up to 800 vehicles. This project was also approved for a brownfield Single Business tax credit valued at $5.6 million in January 2005.
The city of East Lansing will work with developer Corey Partnership LLC to demolish a vacant structure located at the northeast corner of Bailey Street and East Grand River and rebuild a new, four-story building with the help of tax capture valued at $514,000. The new building will house 27 one- and two-bedroom apartment units and about 4,575 square feet of retail space. Corey Partnership will invest approximately $3.6 million in the project, which is expected to create 10 new jobs. The East Lansing Downtown Development Authority will also contribute $132,000 towards the redevelopment of the site. The project also received a brownfield Single Business Tax credit earlier this month valued at $300,000. The project is one of three private sector development efforts that are part of the Michigan's Cool Cities project for East Lansing.
The brownfield redevelopments are among three economic development projects the Governor announced today. In all, they are expected to create a total of 494 Michigan jobs.
"Brownfield incentives turn a negative into a positive by helping defray the cost of redeveloping these often-challenged sites." MEDC President and CEO Don Jakeway said. "Without them, many of these properties would sit vacant for years to come."
In her 2005 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 60,000 jobs as a result of targeted assistance provided by the MEDC.
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.