Tuesday, April 19, 2005
Michael Shore, MEDC
$142 million Private Investment Expected to Create Nearly 900 Jobs
Governor Jennifer M. Granholm today announced that problem properties in Ann Arbor and Detroit will be transformed into new housing, retail, commercial and office space, creating more than 882 new jobs. The projects, assisted with $8.5 million in brownfield Single Business Tax credits from the Michigan Economic Development Corporation, are expected to generate more than $142 million in private investment.
"Michigan's economic strength depends on the health and vitality of our cities," Granholm said. "Creating cool cities means bringing new jobs to the hearts of our communities, increasing the quality of life for residents and perpetuating future job creation."
The projects are:
Strathmore Development Company, through affiliate Lowertown Development Group, LLC will use a tax credit valued at $4.5 million to revitalize an underutilized and environmentally contaminated 6.4-acre site in Ann Arbor's historic Lower Town. The new development, to be known as Broadway Village at Lower Town, will house a mix of commercial and residential space including 145 apartments, medical offices, pubs and restaurants. It will also include a hotel, athletic club and a 640-space parking structure. Existing buildings on the property will be demolished to make way for the new development. Lowertown will invest $92.2 million in the project, which is expected to create more than 582 new jobs.
Kennedy Square, LLC (also known as Redico) will invest $50 million in the first new high-rise, multi-tenant office building in downtown Detroit in several years. A tax credit valued at $4 million will facilitate the construction of a new 10-story office building in Kennedy Square to replace an underutilized underground parking garage. It will provide office space to attract and retain new tenants in the city and include pedestrian-level retail and commercial space. Located near the Compuware Building, the new development is expected to create 300 new jobs, and will house a total of 1,300 workers. Detroit is a proud and active participant in the Michigan Cool Cities Initiative.
The Ann Arbor and Detroit brownfield projects are among five economic development projects the Governor announced today. In all, they are expected to create and retain a total of 4,111 Michigan jobs, including 2,517 directly by company expansions and redevelopments.
"Michigan's brownfield redevelopment incentives are helping to transform the heart of our communities into magnets for new investment and growth," MEDC President and CEO Don Jakeway said. "Alleviating contamination and blight in two of our major cities can only enhance the state's ability to attract good-paying jobs and a high-quality workforce."
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 35,697 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.