Governor Jennifer M. Granholm today announced a $1 million grant to the city of Traverse City for property acquisition and construction of a public parking facility needed to accommodate the expected expansion of Hagerty Insurance corporate offices in the city’s Old Town area. The project is expected to generate $7.7 million in capital investment and create 386 new jobs including up to 226 directly by the company.
“Hagerty’s decision to grow here is wonderful news for the Traverse City community,” Granholm said. “It means that a local family-owned business with a national and growing international reputation will stay and grow jobs here, opening doors of opportunity for hundreds more local working families.”
The grant is being made available by the Michigan Economic Development Corporation (MEDC) and the Michigan State Housing Development Authority with funds provided by the federal Community Development Block Grant program. Earlier this month, a state tax credit recommended by the MEDC and valued at $2.2 million over seven years helped win the company’s investment and new jobs for Michigan. The MEDC has provided up to $150,000 in Economic Development Job Training funds in addition to approval of an amended brownfield work plan allowing for $3.9 million in state and local tax capture to support the 410-space public parking facility. The city of Traverse City and the Grand Traverse County Brownfield Authority will provide $6.8 million toward the parking deck project.
“The CDBG program is a valuable resource making it possible for communities to support local business development and job growth,” MEDC President and CEO James C. Epolito said. “City and county officials are to be commended for their success in making this project a reality.”
Hagerty, the nation’s leading insurer of collector cars and wooden boats, has had its offices in Traverse City for more than 40 years.
“Hagerty has made a public commitment to the County of Grand Traverse, City of Traverse City, Old Town residents and business owners, to provide as many as 226 new jobs in our region. We are confident in our agreements with the county and city and are pleased the state of Michigan has awarded the benefit of a CDBG to the City parking deck,” Hagerty Group Chairman and CEO Kim Hagerty said.
“Without this significant support from the state of Michigan…one of our largest employers would not have the opportunity to expand and would be faced with the possibility of reducing their operations in our city,” Mayor Michael Estes said.
The MEDC is able to award approximately $40 million in federal CDBG funds each year. There are 1,655 local governments within the state eligible to apply for these funds. Projects are approved contingent upon compliance with state and federal requirements.
Addison Wheelock, chairman of the Grand Traverse County Board of Commissioners added, “The opportunity that this grant brings in keeping one of the largest employers in our community is tremendous and could not have been achieved without the state, county and city working together.”
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. For more information on MEDC initiatives and programs, visit the Web site at www.MichiganBusiness.org.