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Tuesday, February 25, 2014
The MEDC today announced MSF approval of projects that in total will generate $362 million in new capital investment and create 1,444 new jobs in Michigan.
LANSING, Mich. – The Michigan Economic Development Corporation today announced Michigan Strategic Fund approval of economic development and community revitalization projects that in total will generate $362 million in new capital investment and create 1,444 new jobs in Michigan.
“These projects cover a broad range of industries and technologies and assure very strong economic opportunities for Michigan businesses and citizens,” said Gov. Rick Snyder. “These new investments in our state will strengthen Michigan’s role in advanced science, improve our communities, and fuel more and better jobs for our talented workforce.”
The Facility for Rare Isotope Beams to be built on the campus of Michigan State University received Michigan Strategic Fund approval of an inducement resolution for issuance of up to $100 million in private activity bonds for the community share of the project. The project involves more than $600 million in direct investment, mainly from the federal government. The proposed facility will consist of approximately 220,160 square feet of a newly constructed building to adjoin the existing National Superconducting Cyclotron Laboratory.
The total civil construction cost is estimated to be $165 million. MSU estimates that in the next 10 years, approximately 400 new full-time jobs will be created. When construction of the facility begins, an estimated 5,000 one-year construction jobs will be created.
Eberspaecher North America, Inc., an automotive supplier specializing in automotive exhaust systems, has been operating in Michigan since 2000 and is part of the Eberspaecher Group based in Esslingen am Neckar, Germany. Eberspaecher plans initially to expand its manufacturing capacity in the City of Brighton from 110,000 square feet to over 300,000 square feet. When combined with other investments in Michigan, the project will generate a total capital investment of $122 million and create 545 new jobs, resulting in a $4.5 million Michigan Business Development Program performance-based grant. The City of Brighton is considering support of the project in the form of a property tax abatement. The Michigan Department of Transportation is also considering support of the project in the form of a Transportation Economic Development Fund grant.
Kalitta Air, LLC, a Federal Aviation Administration certified provider of aircraft maintenance, repair and overhaul services plans to construct a new 80,000 square foot airplane hangar. This hangar will be built in addition to Kalitta Air’s current operations at the Wurtsmith Airport in Oscoda Charter Township. The project involves a total capital investment of up to $9.7 million and the creation of 200 jobs, resulting in a $2 million Michigan Business Development Program performance-based grant. Oscoda Charter Township has offered tax increment financing at an estimated value of $1.6 million over 15 years.
TD Ameritrade Holding Corporation (NYSE: AMTD), based in Omaha, Neb., provides online brokerage services. The company plans to open a new technology center focused on advanced technology and innovation in the City of Ann Arbor. The project is expected to generate up to $3 million in total capital investment and create up to 50 new jobs over time, resulting in a $500,000 Michigan Business Development Program performance-based grant. Michigan was chosen over competing sites in New Jersey, Nebraska and Illinois. Ann Arbor SPARK has offered support to the project in the form of talent recruitment assistance.
Ashley Owner, LLC is part of Princeton Domino Investments LLC and Lamont Street Partners. Ashley Owner plans to renovate the vacant, historic Milner Hotel at 1526 Centre Street in the City of Detroit. The renovated building will include 61 apartments, 5,200 square feet of commercial office space and two retail units. The project is anticipated to generate $8.2 million total capital investment and create 25 full-time jobs. As a result, the project is receiving a $1 million Michigan Community Revitalization Program performance-based grant. The City of Detroit Brownfield Redevelopment Authority also received approval for state school tax capture valued at $482,075.
Midland DTH LLC, a single-purpose entity organized by SSP Associates, Inc., is proposing a mixed-use, five story redevelopment located at 102-128 East Main Street and 108 Ashman Street in the City of Midland. The new 65,000 square-foot building will include extended-stay hotel suites, apartments, a restaurant, office space and an underground parking garage. The project is anticipated to generate $23 million in total capital investment and create 46 full-time jobs, resulting in a $4.8 million Michigan Community Revitalization Program performance-based loan. The City of Midland also received approval of local and school tax capture valued at $4.65 million.
Strathmore Apartments Limited Dividend Housing Association, LLC (in coordination with McCormack Baron Salazar and Midtown Detroit, Inc.) plans to historically renovate the former Strathmore Hotel located at 70 West Alexandrine in the City of Detroit. The project will convert the vacant, blighted eight-story building into 129 apartments with 2,000 square feet of retail space on the first floor. The project is expected to generate $28.4 million in total capital investment and create three jobs. As a result, the project will receive $3.5 million in Michigan Community Revitalization Program performance-based equity contribution.
MSF also approved $7,600,176 in Downtown Infrastructure Grant (DIG) program funds to 14 Michigan communities for public infrastructure improvements. The communities will provide a total of $2,715,620 in matching funds. Details of the grants will be announced on Friday, Feb. 28.
AVL Powertrain Engineering, Inc. Job Creation MBT Credit Amendment – AVL, a 60-year-old powertrain consulting company based in Austria, established its North American operation in 1994 in Southeast Michigan. In 2006 the company received a High Technology/High Wage Job Creation MBT Credit to expand its Plymouth Township operations. The company was also awarded a High Technology Job Creation MBT Credit in 2009 to expand its facility in Ann Arbor. The company is considering an expansion project with the potential for up to 100 new jobs at its Plymouth Township and Ann Arbor locations. As a result of this growth, MSF approved an increase in the total new qualified jobs by 100 for the years 2015 through 2017.
McLaren Performance Technologies, Inc. MEGA Job Creation Tax Credit amendment – McLaren Performance Technologies, Inc., a division of global manufacturing company Linamar Corporation, received a high technology/high wage MEGA Job Creation Tax Credit for 34 jobs to expand in the City of Livonia in 2009. McLaren has collected its credit through 2012 and has reached the ceiling of 34 qualified new jobs. Currently the company plans to consolidate its sales office in Southfield and engineering center in Livonia to create a Sales and Engineering Center on the existing property in Livonia. The consolidation will result in the creation of 75 new jobs and create a state of the art technology and sales center to support Linamar and McLaren customers. As a result of this growth, MSF approved an increase in the maximum allowance for new qualified jobs on McLaren’s MEGA credit by 75 from 34 to 109 for the years 2015 through 2019. For employment information with McLaren, visit http://www.linamar.com/careers.
Michigan residents interested in seeking employment with any of Michigan’s growing companies should check mitalent.org, where more than 60,000 jobs are available in a variety of industries.
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.
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