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The Michigan Economic Development Corporation today announced Michigan Strategic Fund approval of state incentives to five business expansions and four community improvement projects across the state
LANSING – The Michigan Economic Development Corporation today announced Michigan Strategic Fund approval of state incentives to five business expansions and four community improvement projects across the state that are expected to generate $173 million in new investments and add 1,119 new jobs in Michigan.
“These business expansions and community improvements demonstrate the growing optimism across Michigan among our business leaders and citizens,” said Governor Rick Snyder. “We’ve worked to better our state’s business climate and our efforts are bringing strong results. These new investments will strengthen our communities and fuel more and better jobs for our talented workforce.”
The MSF-approved projects include three in the metro Detroit region, another three in the corridor near Flint and Saginaw, two in West Michigan and one in Traverse City. The projects span industry sectors including auto suppliers in Marysville, Saginaw and Lake Orion, cereal production in Battle Creek, automation products near Holland and include a historic renovation in Detroit and community improvements in Fenton, Owosso and Traverse City.
MICHIGAN BUSINESS DEVELOPMENT PROGRAM:
SMR Automotive Systems, USA, Inc. is a Tier 1 automotive supplier of rear vision systems. The company plans to expand its facility in the City of Marysville by adding a paint line and new equipment and reconfiguring the existing space. The company also plans to purchase a 100,000 square foot warehouse in the City of Port Huron. SMR plans to invest $40 million and add 350 new jobs related to the projects, resulting in a $4 million Michigan Business Development Program performance-based grant. The City of Marysville is providing property tax abatements in support of the project.
J.R. Automation Technologies, LLC designs, manufactures and maintains specialized automated machinery around the world. Established in 1980, the company provided automated machinery to customers within the automotive industry. In 2008, the company expanded into new markets which now include consumer products, food processing, pharmaceutical, medical device and aeronautic industries. The company plans to expand existing operations in Olive Township and Holland Charter Township, creating 90 new jobs and investing up to $4.2 million. As a result of the expansion, J.R. Automation has been awarded a $300,000 Michigan Business Development Program performance-based grant. The townships have offered support in the form of 12-year property tax abatements.
Kay Screen Printing (d/b/a Kay Automotive Graphics) produces exterior graphics and trim parts for the North American automotive market. The company plans to construct a new facility in Orion Township, investing $12.9 million and creating 50 new jobs. As a result of the expansion, Kay Screen Printing has been awarded a $350,000 Michigan Business Development Program performance-based grant. Lake Orion Township is offering a 12-year property tax abatement valued at $731,000.
Post Foods dates back to 1895 as one of the early pioneers in the ready-to-eat breakfast cereal business when C.W. Post came to Michigan and formed the Postum Company. The company currently has manufacturing facilities in four locations: Battle Creek, MI; Jonesboro, AR; Modesto, CA; and Niagara, ON. This project would consolidate the manufacturing headquarters into the Battle Creek facility, relocating key leadership roles to Battle Creek and closing the Modesto facility. The company plans to invest $30 million and create 92 jobs, resulting in a $700,000 Michigan Business Development Program performance-based grant. The City of Battle Creek is offering support in the form of a property tax abatement.
COMMUNITY REVITALIZATION PROGRAM:
1212 Griswold Street LLC plans to renovate the historic 13-story Chamber of Commerce building, also formerly known as the Detroit Savings Bank Building, originally constructed in 1895 at 1212 Griswold Street in the City of Detroit. The building will be renovated into 56 residential apartments and commercial office space on floors one through five. The project will generate a total capital investment of approximately $37.6 million and create 120 new jobs. As a result, the project has been awarded a $6 million Michigan Community Revitalization Program loan. The City of Detroit is offering support to the project in the form of a 12-year Obsolete Property Rehabilitation tax abatement.
Corlin Builders, Inc. has been awarded an $880,000 Michigan Community Revitalization Program incentive to demolish an obsolete building located at 134 North Leroy in the City of Fenton and build a new, four-story mixed use development. The project will include first floor dining and retail space with 23 residential units on the top three floors. The project is expected to generate a total capital investment of approximately $5.2 million and create 75 full-time positions. The City of Fenton has provided direct funding to the project from the Fenton Downtown Development Authority in the amount of $1.2 million.
COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM:
The City of Owosso has been awarded $270,375 in CDBG funds for façade improvements for seven buildings located within the traditional downtown core of Owosso. The project is receiving private matching funds from the business owners totaling $83,728 and $6,397 from the City of Owosso.
BROWNFIELD WORK PLAN:
TBA Credit Union Redevelopment Project – The County of Grand Traverse Brownfield Redevelopment Authority will use school and local tax capture valued at $1,017,309 to demolish two buildings located on Front Street in the City of Traverse City. The project will include infrastructure improvements and preparation of the property for the construction of a new three-story headquarters for TBA Credit Union. The project is expected to generate a total capital investment of $7.3 million and create 17 permanent new jobs.
JOB RETENTION MBT TAX CREDIT AMENDMENT:
Nexteer Automotive Corporation MBT Retention Tax Credit amendment – Nexteer Automotive Corporation received an MBT Retention Tax Credit for 2,400 retained jobs at its Buena Vista Township facility in 2009. In October 2012 the credit was amended to allow for an additional 325 jobs related to new business for the years 2012 and 2013. The number of allowed jobs under the credit was set to revert back to 2,400 after 2013. Currently the company has the opportunity to locate new electric power steering and steering column manufacturing programs to the Buena Vista Township facility, requiring an estimated $36 million in new investment and 325 new jobs by December 2015. As a result of this growth, MSF approved an increase in the maximum allowance for retained jobs on Nexteer’s Job Retention MBT Tax Credit from 2,400 to 2,725 for the years 2014 through 2017.
“Today’s wide range of projects will all lead to greater economic opportunities for people across Michigan,” said MEDC President and CEO Michael A. Finney. “These projects will help strengthen and revitalize Michigan’s communities and help growing companies generate new job opportunities.”
Pure Michigan is a brand on the rise, representing business, talent and tourism initiatives across Michigan. These efforts are driven by the Michigan Economic Development Corporation, which serves as the state’s marketing arm and lead agency for business growth, jobs and opportunity with a focus on helping grow Michigan’s economy.
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.