Tuesday, March 15, 2005
Michael Shore, MEDC
Redevelopment Projects Expected to Create 152 New Jobs
Governor Jennifer M. Granholm today announced that underutilized brownfield properties in seven Michigan communities will be transformed into housing and retail opportunities, creating up to 152 new jobs. The projects are expected to generate more than $112 million in private investment due to state and local brownfield tax capture incentives approved by the Michigan Economic Development Corporation.
"The first step in maintaining a strong economy in Michigan is to ensure we have healthy, vibrant cities," Granholm said. "Transforming these underused sites into wonderful places to live, work and do business will strengthen communities and make Michigan an economic powerhouse in the 21st century."
The projects in Alpena, Detroit, Grand Rapids, Ferndale, Kalamazoo, Norton Shores and Taylor are:
East Village LLC will use tax capture valued at $196,420 to prepare 25 parcels of blighted property for the construction of 23 new homes and the renovation of one home in southeast Detroit. The project is part of a larger effort spearheaded by the Jefferson Avenue Housing Development Corporation to revitalize a 23-block area bounded by Kercheval to the north and Jefferson Avenue to the south. The total investment in the project is approximately $6.3 million.
Parkland Investments Inc. will use a $1 million brownfield SBT credit and state and local tax capture valued at more than $1 million to redevelop the former West Middle School in the heart of downtown Grand Rapids into housing and commercial space. The developer will invest more than $12.5 million to renovate and restore the approximately 200,000-square-foot building located at 615 Turner NW into 130 condominium units with the possibility of additional commercial uses. The city of Grand Rapids has approved local tax capture valued at more than $618,000 to support the project.
United Building LLC in partnership with the city of Kalamazoo, Downtown Kalamazoo Inc. and Downtown Tomorrow Inc. will use tax capture valued at $70,000 to redevelop a three-block area in the city's northeast business district. The project includes redeveloping the historic United Electric Building on East Kalamazoo Avenue into office, restaurant and entertainment space. The developer will invest approximately $4.3 million in the project, which is expected to create 50 new jobs.
Developers Eastowne One, Eastowne Two and Eastowne Three LLC will utilize tax capture valued at more than $2 million to redevelop a former landfill site into residential, professional office and mixed retail use. Tenants using the retail space will include a sports medicine center, a home design center and a restaurant. In addition, approximately 86 residential units will be constructed. This project also received approval for a brownfield Single Business Tax credit from the MEDC valued at $4.1 million in December 2004. The developers will invest approximately $41 million in the project, which is expected to create 96 new jobs.
Princeton Properties will demolish the 128,000-square-foot vacant Source Club warehousing and retail building near Eureka Road and construct 204 attached single-family homes using tax capture valued at $1.95 million. Demolition on the site is expected to occur by November 2005 with the final project completed by 2009. Princeton Properties will invest approximately $38.8 million in the project.
The brownfield redevelopments are among 13 economic development projects the Governor announced today. In all, they are expected to create and retain a total of 7,120 Michigan jobs, including 3,196 directly by company expansions and redevelopments.
"Michigan brownfield redevelopment incentives are great tools to attract new growth and investment to our state," MEDC President and CEO Don Jakeway said. "These projects demonstrate that we are serious when we say we will make Michigan the best place in world to live and work."
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 31,464jobs 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.