Why Site Preparation Makes Sense as Public Investment

Part of economic development is finding places where all kinds of businesses can thrive. Some businesses thrive in a downtown Main Street or a rehabilitated brownfield; others need an undeveloped site with good access to roads, power and other infrastructure.  

Communities that can attract major developments benefit through well-paid jobs, capital investment and tax revenue. Communities can establish broad local buy-in and agreement over the locations and industries where development is welcome through careful planning efforts. That reduces risk for project developers by removing a source of potential delay, and risk for communities that their desired projects will choose to locate elsewhere – since many site selection processes are intensely competitive. 

Recognizing the benefits of business attraction, many of Michigan’s peer states have invested in site preparation in recent years, purchasing infrastructure upgrades such as sewer connections, power lines and roads that benefit both the local community and the site’s competitiveness. In the Great Lakes region alone, Illinois designated $200 million in 2025, while Ohio set aside $350 million and Pennsylvania allocated $400 million in 2024.  

Michigan has a lot of high-quality sites, but not all of them have high-quality infrastructure. Funding for site preparation can support improvements that make Michigan's best business locations more attractive and draw investment and jobs to our state. The MI Sites program from the Michigan Economic Development Corporation (MEDC) is identifying some of the most promising sites in the state to better compete for projects and laying groundwork for public investment through its companion program, Michigan Ready Sites. 

The benefit of major investments 

The MEDC’s mission is to achieve long-term economic prosperity for Michiganders, in part by competing for and winning projects that support job growth and leverage Michigan’s assets. Major business developments are an important aspect of the strategy, because the jobs created, capital invested and tax revenue contributed into a community have multiplier effects on regional economic activity across future years and decades. 

These effects have been studied extensively by the U.S. Bureau of Economic Analysis, stretching back to the 1970s and resulting in a Regional Input-Output Modeling System (RIMS II). Most estimates of overall economic impact from a major investment rely on this or similar well-established models such as REMI. They capture the ripple effects that can include: 

• increased wages due to a hotter local labor market 

• increased demand at local small businesses and suppliers 

• increased services through local government, such as fire, police or parks 

Increased tax revenue can be especially valuable for communities who want to maintain or improve services without raising taxes on residents. 

The first step: community buy-in 

MI Sites is a community-first effort that empowers local leaders while requiring explicit community support and alignment so investments are landed with broad local buy-in. Sites that enter the MI Sites pathway to improved readiness often attract larger, higher-impact projects because developers value the reduced timeline and risk. The benefits for communities are tangible: higher success rates in winning competitive projects, better-aligned infrastructure investments and the capacity to market shovel-ready sites to a global audience. 

Community support is identified through several common pathways. Creation of the community's master plan, zoning decisions and letters of support from local elected officials all provide avenues to designate possible sites for development and build consensus around a community’s approach. To see these for your own community, look at the master plan or other documents produced by your planning commission. 

The competitive site selection process 

Any company contemplating a major investment will consider several possible places to put their resources. In choosing a site, they are looking at the economics of any incentive package, but also at the risks of delay. Will they be able to proceed on their desired timeline, and ready to operate on time? The winning site will most likely be the one that gives a company the highest level of confidence. 

Site preparation involves removing risks by eliminating unknowns and sources of delay. By fully documenting the site’s condition, any environmental issues, utility access and community support, the site becomes more marketable. Answering questions in advance demonstrates competence and good faith. It can also make the public engagement process faster; if a community is already discussing what kinds of investment they would welcome, conversations can happen more quickly and comfortably for all involved. 

Advance infrastructure improvements can also improve a site’s competitiveness, and often present side benefits for nearby residents. For example, extending sewer or public water service to a site can allow neighbors to move off septic tanks or well water, or make new housing developments feasible. 

How other states are competing 

Many states have invested in major site readiness programs, including several of Michigan’s peer states in the Great Lakes region: 

• Illinois: In June 2025, Illinois included “a historic $500 million investment in site readiness to revitalize vacant sites in the state to attract new business and job opportunities” as part of its FY 2026 budget. $300 million was set aside for a “Surplus to Success” program to prepare idle state-owned properties for private development, while the remaining $200 million was dedicated to expanding existing site readiness and business attraction efforts. 

• Ohio: In the state’s 2024-2025 budget, the All Ohio Future Fund offered a “$750 million investment to support local communities with site-readiness and preparation to attract economic development projects.” All available funds were awarded as of July 25, 2025. 

• Pennsylvania: In its 2024-2025 budget, Pennsylvania made a $400 million investment in the Pennsylvania Strategic Investments to Enhance Sites (PA SITES) program to “build more shovel-ready industrial sites across the Commonwealth — helping attract businesses, investment, and good-paying jobs.” 

How Michigan is competing 

Gov. Whitmer’s executive budget recommendation, released in February 2026, proposes investments to create good-paying jobs, continue to grow and diversify Michigan’s economy and build stronger, more vibrant communities. One of these proposed investments is $150 million to invest in public infrastructure and prepare sites in Michigan for future development or redevelopment, creating a statewide inventory of development-ready sites to attract investment and create jobs. 

Through the MI Sites program and other past site evaluation efforts, the MEDC has developed a rich dataset of prospective site development needs and opportunities and has built relationships with communities to understand their preferences and desires. State funding will address the needs with the highest expected value, laying the groundwork for major investments and long-term prosperity.