The Michigan Economic Development Corporation today announced Michigan Strategic Fund approval of a $22.5 million investment in a new private equity fund that will provide growth funding for Michigan automotive suppliers...
LANSING, Mich. – The Michigan Economic Development Corporation today announced Michigan Strategic Fund approval of a $22.5 million investment in a new private equity fund that will provide growth funding for Michigan automotive suppliers well as two business expansion projects that will generate more than $45.9 million in new capital investment and create 72 jobs in Michigan.
“Today’s Strategic Fund actions will mean new support for expanding Michigan’s small businesses and greater economic opportunities for people across Michigan,” said MEDC President and CEO Michael A. Finney. “Our economic recovery is demonstrating increasing momentum thanks to our improved business climate and continued new job-creating investments. Today’s investments will fuel new economic activity that will show benefits across Michigan.”
MSF today approved $22.5 million in loan funding under the MEDC Capital Conduit Program to Grow Michigan Holdings, LLLC, to be invested in Michigan Capital Partners (MCP), a newly created private equity fund. MCP, a collaboration of public and private funding, will be capitalized by a number of private investors from across the state to provide growth funding for Tier 2 and Tier 3 automotive and transportation suppliers with a presence in Michigan. The targeted private investment fund will total $125 million, creating more than $4.50 in private investment for each public dollar invested. It will make investments in companies with $20-200 million in revenue in the transportation value chain: machining, forming, tool and die making, supply chain support and technology. Companies considered for the fund’s investments will be headquartered or have operations in Michigan with plans to expand their facilities and create new jobs in the state.
Canal Street Brewing Co., LLC (dba Founders Brewing Co.) began in Grand Rapids in 1997 as a small tap room and small beer production facility. Today the company has increased its production by almost 50 times and its tap room sales by about 10 times. The company is expanding its property on Grandville Ave. SW in the City of Grand Rapids, investing $40.4 million and creating 72 jobs. As a result, the company has been awarded a $250,000 Michigan Business Development Program performance-based grant. The City of Grand Rapids is offering support to the project in the form of property tax abatement. Individuals interested in positions with Founders Brewing Co. should visit http://foundersbrewing.com/jobs/.
In addition, MSF approved an amended Act 381 Brownfield work plan submitted by the City of Grand Rapids Brownfield Redevelopment Authority for school and local tax capture valued at $4,281,805 for demolition, site preparation, infrastructure improvements, and streetscaping for the project.
Covisint Corporation, founded in 2000 as a collaborative effort by several automotive OEMs, is a business-to-business cloud company that provides platforms for enterprises that must securely share, integrate and present trusted information to people and devices across networks of business partners and customers. In brief, Covisint provides a single entry point to securely and seamlessly connect trusted information to the right people and place at the right time. On October 31, 2014, the company was fully spun off from its parent, Compuware Corporation, and is looking to grow in markets outside of the auto industry. Covisint plans to lease space and establish a new headquarters in the City of Southfield, investing up to $5.5 million and creating 50 jobs. As a result, the company has been awarded a $1.5 million Michigan Business Development Program performance-based grant. Michigan was chosen over competing sites in Texas and North Carolina. The City of Southfield has offered support to the project in the form of property tax abatement. Individuals interested in career opportunities with Covisint should visit www.mitalent.org.
In addition, MSF approved an amendment to the Events Center Project bond authorizing resolution that was passed at the September 17 board meeting. The amendment removes the bond rating requirement, allowing the bonds to be sold as unrated. MSF also approved an inducement resolution for issuance of $70 million in tax-exempt bonds to purchase the basement through the seventh floor of the Capitol View Building in Lansing to be used for Michigan Senate offices.
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.