Thousands of Resources. Ready to help.
Tuesday, August 22, 2017
More than $561 million in new investment. 1,500 jobs, and two community revitalization projects among key projects approved by MSF
More than $561 million in new investment with 1,500 jobs and two community revitalization projects are among the key projects approved by the Michigan Strategic Fund, Gov. Rick Snyder announced Tuesday (August 22).
The projects include investments by Lear Corporation, LG Electronics and Penske Logistics that will generate a total of $158.8 million capital investments and create 1,130 jobs.
“The commitment by these global companies to grow and create jobs in Michigan will strengthen our communities by providing more and better jobs for our talented workforce,” Snyder said. “These employers could have grown anywhere but chose to invest in Michigan’s future. Professional trades and high-skilled jobs keep growing here, which is why we need to remain committed to career development and closing the skills gap.”
MSF today approved the appointment of Michigan Economic Development Corporation CEO Jeff Mason to the American Center for Mobility’s board of directors. In 2016, MSF approved resolutions that helped establish the Willow Run Arsenal of Democracy Landholdings Limited Partnership toward finalizing the acquisition of land at Willow Run, and facilitate the design, construction costs and operations for the completion of Phase I of the connected and automated vehicle facility to be developed and operated by the American Center for Mobility. Per the by-laws of the ACM, the MSF is entitled to designate two members to the ACM board of directors and Mason will assume one of the two positions.
Lear Corporation, founded in 1917 in Detroit and currently headquartered in Southfield, is a manufacturer of complete seating and electrical systems for automobiles. The company needs to expand to add machinery and equipment for the production of seating systems for full-size trucks, and plans to construct a new 156,000-square-foot facility at the Buick City campus in the city of Flint. The project is expected to generate total investment of $29.2 million and create 435 jobs, resulting in a $4.35 million Michigan Business Development Program performance-based grant. Michigan was chosen over competing locations, including Mexico. The city of Flint has offered property tax abatement in support of the project. Individuals interested in careers with Lear should visit http://www.lear.com/site/careers.
In addition, MSF approved a $300,000 one-time grant to the Evergreen Community Development Initiative for its literacy center in the city of Flint. Intended to support talent development, the center will house a complete virtual library computer lab and dedicated literacy coaches with a defined curriculum to increase adult literacy rates and job readiness. The funds were provided to MSF by the Michigan Department of Treasury through a memorandum of understanding.
LG Electronics is an electronics company operating throughout the world, with four business units: home entertainment, mobile communications, home appliance & air solutions, and vehicle components. The company has opportunities for growth within the electric vehicle market, and LG Electronics Vehicle Components USA plans to establish a new, 250,000-square-foot assembly and center of excellence facility in the city of Hazel Park. LG will also expand its engineering and design facility in the city of Troy. The project is expected to generate capital investment of $25 million and create 292 jobs, resulting in a $2.92 million Michigan Business Development Program performance-based grant. Michigan was chosen over competing sites in the Midwest and China. The cities of Hazel Park and Troy will provide assistance in finding candidates for the new positions. For information on careers with LG US, visit http://www.lg.com/us/careers.
Penske Logistics plans to open a new 606,000-square-foot distribution center in the city of Romulus creating 403 jobs. Penske Logistics and developer InSite Real Estate LLC will be investing a combined $98.5 million in the facility. As a result, Penske Logistics has been awarded a $2.5 million Michigan Business Development Program performance-based grant. Michigan was chosen over multiple sites in the Midwest. The city of Romulus and Detroit Region Aerotropolis will consider a 10-year property tax abatement in support of the project. Headquartered in Reading, Pa., Penske Logistics provides dedicated carriage, distribution management, lead logistics, freight brokerage, and supply chain consulting solutions to market-leading companies around the globe. Visit www.penskelogistics.com to learn more.
Looney Moon LLC plans to completely rehabilitate property located at 204 East Grand River Avenue in the Old Town district of the city of Lansing into a mixed-use development that will include retail, commercial, and residential space. The building is the last to be renovated on the 200 block in Old Town and is expected to create a prominent entry point into the district, bringing new vibrancy, increased density, and more economic activity to the area. The project is expected to generate a total capital investment of nearly $1.7 million and create 20 full-time equivalent jobs. As a result, the project has been awarded a $300,000 Michigan Community Revitalization Program performance-based grant.
The Revival Commons Redevelopment Project will redevelop 53.7 acres of contaminated property located at the former Tecumseh Products site in the city of Tecumseh. The completed project will consist of a mixed-use development that will include industrial, office and retail space. Located within walking distance of downtown Tecumseh, the new development will bring an underutilized property back to productive use and is expected to generate increased foot traffic and economic activity in the downtown area. The City of Tecumseh Brownfield Redevelopment Authority today received MSF approval of $1,447,584 in local and school tax capture for the alleviation of brownfield conditions at the site.
MSF approved an increase to the State Essential Services Assessment Exemption to support Ford Motor Company’s expansion at its Livonia Transmission Plant. Announced in May, the expansion will add a new transmission to its lineup. The project will generate additional investment by Ford of $350 million, resulting in an increase from $1.2 billion to $1.55 billion to the company’s SESA exemption. The company evaluated locations in neighboring states as well as Mexico for the expansion. Allowing Ford to claim the additional investment under its existing SESA exemption will ensure that the project moves forward in Michigan.
MSF also approved the University Technology and Commercialization Program Request for Proposals in the amount of $2.8 million. The purpose of the RFP is to solicit proposals from applicants that have received prior MSF funding and require additional funding to continue the programs. The UTACP, originally approved by MSF in 2011, was established to invest in university-business partnerships focused on mentors, interns, collaboration, commercialization, economic growth and job creation.
“Today’s projects, including major business expansions and community revitalization projects in Tecumseh and Lansing, will fuel new economic activity across Michigan, strengthen communities, and create well-paying jobs for our residents,” MEDC CEO Mason said. “These projects will serve as catalysts for additional investment around the state.”
To contact a business development specialist, click here or call 1.888.522.0103.