The Michigan Economic Development Corporation today announced Michigan Strategic Fund approval of state incentives to three business expansions and three community improvement projects across the state...
LANSING, Mich. – The Michigan Economic Development Corporation today announced Michigan Strategic Fund approval of state incentives to three business expansions and three community improvement projects across the state that are expected to generate $49 million in new investments and add 775 new jobs in Michigan.
“These new investments across Michigan will strengthen our communities and fuel more and better jobs for our talented workforce,” said Gov. Rick Snyder. “The commitment of these companies to grow and create jobs here further reinforces Michigan's reputation as America's comeback state.”
The Michigan Strategic Fund approved incentives for the following projects:
Hirata Corporation of America, headquartered in Indianapolis with operations in the City of Wixom, is a subsidiary of Hirata Corporation of Japan. The company designs and manufactures advanced robotic production facilities, primarily for the automotive and semiconductor industries. The company plans to expand into a larger facility in Lyon Charter Township, investing up to $2 million and creating 39 new jobs. As a result, the project has been awarded a $200,000 Michigan Business Development Program performance-based grant. Michigan was chosen over competing sites in Indiana and Ontario. Lyon Charter Township as offered support to the project in the form of a 12-year property tax abatement valued at $50,000.
Molina Healthcare, Inc., headquartered in Long Beach, CA, provides health services to individuals and families who receive their health care through Medicaid, Medicare and other government funded programs. Molina Healthcare of Michigan, a subsidiary of Molina Healthcare, is headquartered in the City of Troy and began operating in Michigan in 2000. The company and its parent plan to expand in Troy as well as lease downtown office space in the City of Detroit. The expansion is expected to generate up to $20.3 million of investment and create 462 new jobs, resulting in a $2,296,000 Michigan Business Development Program performance-based grant. Michigan was chosen over competing sites in several other states. Both the cities of Detroit and Troy have offered local support toward the project. For information on positions with Molina, please visit http://www.molinahealthcare.com/careers
The Lofts on Michigan, LLC plans to demolish a vacant and obsolete building located at 740 and 756 Michigan Street in the City of Grand Rapids. The project includes the construction of a new four-story building that will include commercial/retail space on the first floor and 54 apartments on the upper three floors. The project will generate a total capital investment of approximately $15.2 million and generate 15 permanent jobs. As a result, the project has been awarded a $2.45 million Michigan Community Revitalization Program loan participation.
In addition, MSF approved an Act 381 Brownfield work plan submitted by the City of Grand Rapids Brownfield Redevelopment Authority for school and local tax capture valued at $3,151,225 to assist with demolition, site preparation and infrastructure improvements for the project.
600 Clancy Redevelopment Project – The City of Grand Rapids Brownfield Redevelopment Authority will use $1,376,375 in school and local tax capture to demolish 12 single family homes in the City of Grand Rapids and construct four residential buildings consisting of 66 rental units. The project will include asbestos abatement, site preparation activities and infrastructure improvements. The project is expected to generate a total capital investment of $8 million and create three full time jobs.
2700 Block of West Michigan Avenue Project – The City of Kalamazoo Brownfield Redevelopment Authority will use local and school tax capture valued at $1,403,604 to construct a new, five-story mixed use building consisting of retail, restaurant and office space as well as 40 four-bedroom apartments in the City of Kalamazoo. The project will include demolition of existing buildings, asbestos abatement, infrastructure improvements and site preparation activities. The project is expected to generate a total capital investment of $13.6 million and create 100 full-time equivalent jobs.
BASF Corporation is the North American affiliate of BASF AG of Ludwigshafen, Germany, one of the world’s leading chemical companies. In 2006, the Michigan Economic Growth Authority approved a Job Creation MBT Credit for the company to relocate a newly acquired business into its campus in the City of Wyandotte for a maximum of 175 new jobs. The company has seen growth in the area of structural and functional polymers, and plans to invest in upgrades and new equipment at its Wyandotte facility as well as its R&D facility in the City of Southfield. The project will generate a total capital investment of $3.5 million and create an additional 156 high-paying jobs. As a result of this growth, MSF approved an increase in the maximum allowance for new jobs from 175 to 331 and the addition of the City of Southfield as an eligible location to create jobs.
The Michigan Business Development Program provides grants, loans and other economic assistance to qualified businesses that make investments or create jobs in Michigan, with preference given to businesses that need additional assistance for deal-closing and for second stage gap financing.
The MSF considers a number of factors in making these awards, including: out-of-state competition, private investment in the project, business diversification opportunities, near-term job creation, wage and benefit levels of the new jobs, and net-positive return to the state. Business retention and retail projects are not eligible for consideration of these incentives.
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.