Monday, August 01, 2005
Michael Shore, MEDC
Expansion and Redevelopment Projects Spur $158 Million in Private Investment
Governor Jennifer M. Granholm today announced one company expansion and five brownfield redevelopment projects across the state that will create and retain up to 2,939 new jobs and attract more than $158 million in private investment. Incentives from the Michigan Economic Development Corporation were instrumental in helping to launch the projects.
"Each of these projects means more jobs and stronger economies for Michigan communities," Granholm said. "This is the type of growth we need to remain a global competitor in the 21st century economy."
- 1234 Michigan LLC will use tax capture valued at $592,000 to transform the former U.S. Army Armory site located near Fuller Avenue and Michigan Street in Grand Rapids into a two-story multi-tenant medical office building. The developer will invest $6.6 million to demolish the existing structures and construct the 40,350-square-foot building and underground parking facility. The project is expected to create up to 80 new jobs.
- Big Sky Development will invest $6.9 million to transform the former Wohlert manufacturing plant in Lansing to accommodate a U.S. Storage Depot facility and additional commercial office space. The redevelopment is expected to create up to 30 new jobs as a result of state and local brownfield tax capture valued at approximately $435,000. U.S. Storage Depot specializes in climate-controlled storage units. Founded in 1982, the company has established seven Michigan locations.
- The Downtown Muskegon Development Corporation will use tax capture valued at more than $4.5 million to prepare the 23-acre site of the former Muskegon Mall downtown for redevelopment. The city, a Michigan Main Street community, plans to convert the site into a mixed-use complex that will include new housing, office, retail, restaurant and entertainment space. Several buildings that made up the mall have been demolished, and the five buildings remaining will be renovated. The city has begun preliminary engineering to establish pedestrian-friendly streetscapes and underground utilities. Approximately 16 acres will be available for the new buildings and parking. The project is expected to create more than 200 new jobs.
- Fairmont Square Investors LLC will use tax capture valued at more than $1.7 million to help renovate the former site of the Mary Free Bed Hospital in Grand Rapids' East Hills Neighborhood, a 2004 Cool Cities designee, into a mixed-use commercial and residential development. The developer will invest approximately $11 million to restore the existing structure that will house offices for the Inner City Christian Federation. New buildings will be constructed on the site including approximately 30 condominiums and additional office/retail space. The project is expected to create up to 35 new jobs.
- Michigan Street Development LLC will use a $7.5 million brownfield SBT credit and state and local tax capture valued at more than $10.5 million to demolish existing buildings and clean up a contaminated site across from Spectrum Health and the Van Andel Institute in Grand Rapids. The developer will invest $120 million to construct four new buildings that will provide 700,000 square feet of life science research and technology space and help anchor the city's emerging life sciences corridor. A 2,300-space parking deck co-owned by Spectrum Health, Van Andel Institute and Michigan Street Development LLC will be included. The project is expected to create more than 2,000 new jobs.
- Tiara Yachts, a division of S2 Yachts, will invest $14 million to expand at its existing facility in Holland, where it currently has 640 employees. The project will create 594 new jobs, including 400 directly by the company. An incentive package that included a Single Business Tax credit valued at more than $4.7 million over 13 years and an Economic Development Job Training grant worth up to $200,000 helped win the project. The city of Holland has proposed local tax abatements totaling approximately $2.1 million over 12 years to further support the project.
Economic incentives like brownfield and job creation tax credits are key tools to the continuous improvement of Michigan's economy," MEDC President and CEO Don Jakeway said. "These projects will be a catalyst for further job creation in these communities."
In her 2005 State of the State address, Granholm emphasized the importance of making Michigan a global economic powerhouse in the 21st century. In the past 12 months the Governor and the MEDC announced the creation or retention of more than 57,013 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.