Kellogg Lab and Heritage Hill Property Transformation Get Brownfield Aid

State backs Kellogg expansion in Battle Creek, new mixed-use development in Grand Rapids

Governor Jennifer M. Granholm today announced the Michigan Economic Development Corporation (MEDC) is backing an expansion of theW. K. Kellogg Institute for Food & Nutritional Researchin Battle Creek and a new mixed-use commercial and residential development in Grand Rapids. The projects are expected to generate more than $58 million in capital investment in the two communities.   

“Vibrant and strong cities are magnets for attracting and retaining workers in Michigan,” Granholm said. “Revitalizing these properties creates the catalyst for new investment, job creation and renewed commercial activity.”

Brownfield projects announced in 2007 led to creation of more than 8,900 jobs and generated $2.3 billion private investment in 43 projects around the state. The projects announced today:

State and local tax capture valued at $1.3 million will support the expansion of the W. K. Kellogg Institute for Food & Nutrition Research in Battle Creek by nearly 160,000 square feet. Last month the facility was granted a 10-year Agricultural Processing Renaissance Zone as part of an incentive package approved for Kellogg by the city of Battle Creek and the MEDC. The benefits of the Zone include a ten year (seven-year full and three-year partial) exemption from property taxes on building and equipment located within the zone. The $54 million expansion - $40 million for the facility expansion and $14 million for equipment - will include additional office space, additional pilot plant space for testing new food products prior to full-scale production, and additional parking.

Developer Stratus Properties LLC will use $333,750 in local and school capture and private investment of $4.5 million to strip out, completely renovate and build two stories of residential space on top of the 52-year-old Park Professional Building at 345 State Street S.E. in Grand Rapids’ Heritage Hill district. In addition, the existing parking deck will be updated. The mixed-use project, now called Heritage View Place, will house 20,000 square feet of office space and 14 condominiums and is expected to create up to 40 new jobs.The Michigan State Housing Development Authority (MSHDA) is supporting the project.  

“The incentives we offer are designed to help communities restore underutilized properties into usable assets,” MEDC President and CEO James C. Epolito said. “Both of these projects will create a flow of positive economic and commercial activity leading to more of the same.”

The projects are among seven economic development projects the governor announced today. In all, they are expected to create a total of 2,225 jobs. Michigan brownfield programs provide incentives to invest in property that has been used for industrial, commercial or residential purposes and to keep that property in productive use or return it to a productive use. Brownfield incentives can be used for functionally obsolete, blighted, or contaminated property.

“MSHDA and MEDC have developed a very effective working relationship, and we are proud to collaborate with MEDC on these brownfield redevelopment projects.” MSHDA Executive Director Michael DeVos said. “The jobs created and retained through these projects will have a positive impact on the state, and help restore Michigan’s economy.”

In her 2008 State of the State address, Granholm emphasized the importance of creating opportunity in the changing world of the 21st century. Since January 2005 the governor and MEDC have announced the creation or retention of more than 220,000 jobs as a result of targeted assistance provided by the MEDC.

MSHDA is a quasi-state agency that provides financial and technical assistance through public and private partnerships to create and preserve safe and decent affordable housing, engage in community economic development activities, and address homeless issues. MSHDA's loans and operating expenses are financed through the sale of tax-exempt and taxable bonds and notes to private investors, not from state tax revenues. For more information on MSHDA programs and initiatives, visit the Web site at www.michigan.gov/mshda .

About Michigan Economic Development Corporation (MEDC)

The Michigan Economic Development Corporation is the state’s marketing arm and lead advocate for business development, job awareness and community development with the focus on growing Michigan’s economy. For more information on the MEDC and our initiatives, visit www.MichiganBusiness.org. For Pure Michigan® tourism information, your trip begins at www.michigan.org. Join the conversation on: Facebook Instagram LinkedIn, and Twitter.