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Monday, June 8, 2015
Nine companies to invest $146.3 million, create or retain 970 jobs
LANSING, Mich. – The Michigan Economic Development Corporation today announced Michigan Strategic Fund approval of business expansions, community improvement projects and an entrepreneurial biotech Request for Proposals that are expected to generate nearly $146.3 million in new investments that could create or retain 970 jobs. In addition, MSF approved a revised MEGA agreement with Ford Motor Company that encourages the company to invest an additional $3.1 billion in Michigan while capping the state’s liability on previously authorized tax credits.
“The Michigan Strategic Fund approved a wide range of projects today, including two major business expansions in metro Detroit and community revitalization projects around Michigan, as well as a revision to a MEGA agreement that will help us better manage state budgets for years to come, Gov. Rick Snyder said. “These actions will all promote greater economic opportunities for our businesses and residents. Today’s actions further demonstrate our commitment to Michigan’s comeback, leading to more jobs and better lives for our residents.”
The Michigan Strategic Fund approved a revised agreement with Ford Motor Company that caps the state’s liability for previously authorized job retention tax credits and provides incentives for Ford to double its investment in Michigan in the future. The MSF resolution, approved today, combines two previous MEGA agreements with the company and limits its potential tax credit claims to 40,200 retained jobs through the end of 2025. To receive the maximum credits, the agreement would require Ford to invest an additional $3.1 billion for a total of $6.2 billion since 2009. The company is also required to maintain a minimum of 17,400 full-time jobs, at least 8,900 of which must be salaried positions. As part of the agreement, the state’s obligations are capped and the company will provide periodic forecasts of its estimated tax credits to the state to assist the MSF and state of Michigan in budget planning. (NOTE TO EDITORS: Please see reaction of Michigan House and Senate Leaders appended to this release.)
Ferrous CAL Co., a newly-formed affiliate of Ferragon Corporation, is a leading provider of toll processing services for hot-rolled and cold-rolled steel with operations in Michigan, Ohio, Kentucky, and Mississippi. The company is establishing a new facility on an underutilized, largely vacant property on W. Jefferson Avenue in the city of Gibraltar. The completed project will generate a total capital investment of $50.2 million and create 100 jobs. As a result, the company has been awarded $6 million in Michigan Business Development Program incentive assistance. The MSF and Wayne County Brownfield Redevelopment Authority also approved an Act 381 Work Plan for local and school tax capture estimated to be worth $4,511,454. Incentive assistance will allow the company to alleviate brownfield conditions on the property and complete the project including demolition, lead and asbestos survey and abatement, site preparation and infrastructure improvements.
Marada Industries Inc. dba Cosma Body Assembly Michigan, a subsidiary of Magna International, Inc., design, develop, and manufacture automotive systems, assemblies, modules and components, and engineers and assembles complete vehicles, primarily for sale to the car and light truck OEMs. Magna operates 27 manufacturing facilities and 11 engineering, product development, and sales centers in Michigan, employing more than 10,000 people. The company plans to construct a new 150,000 square foot manufacturing facility on 32 acres to supply underbody structural components to a major OEM in the Charter Township of Lyon (Oakland County). The project will generate a total capital investment of more than $56 million and create 250 jobs, resulting in a $1.6 million Michigan Business Development Program performance-based grant. Michigan was chosen over competing sites in multiple locations. The Charter Township of Lyon has offered a staff, financial, or economic commitment to the project in the form of a property tax abatement related to the project. Individuals interested in career opportunities with Marada Industries should visit http://www.magna.com/careers.
Lofts on Alabama plans to redevelop an existing commercial building and construct a new building on Alabama Avenue in downtown Grand Rapids. The project will include demolition work, improvements and rehabilitation of the existing obsolete building, construction of a new three-story building on an adjacent site and infrastructure improvements to the sites. The final project will consist of 103 studio, one- and two-bedroom residential units as well as surface parking and a parking ramp. The project will generate a total capital investment of $20 million and create two jobs, resulting in a $3 million Michigan Community Revitalization Program loan participation at 2.5 percent interest and a term of seven years.
In addition, the City of Grand Rapids Brownfield Redevelopment Authority received MSF approval for $2,825,000 in local and school tax capture for demolition, asbestos abatement, site preparation, infrastructure improvements, construction of the parking ramp and contingency funds. The city of Grand Rapids will contribute approximately $1.2 million in local brownfield tax increment financing and a 10-year Obsolete Property Tax Abatement valued at $658,697.
Woodward and Erskine LLC plans to construct a five-story building for the Scott at Brush Park project in downtown Detroitthat will include retail, restaurant and residential space along with underground parking. The project will generate a total capital investment of more than $61.2 million and create 50 jobs, resulting in a $1.5 million Michigan Community Revitalization Program performance-based loan.
In addition, the City of Detroit Brownfield Redevelopment Authority received MSF approval for an amendment to a work plan submitted in 2006 for $7.2 million in demolition, infrastructure, lead and asbestos abatement and site preparation costs for an area that is no longer part of the project. The amended work plan approved today is $7,790,631 in local and school tax capture for infrastructure improvements related to construction of the underground parking and interest costs for the commercial loans on the project. The city of Detroit is supporting the project through its participation in the Brownfield Tax Increment Financing plan, as well as a 10-year Commercial Rehabilitation Act abatement valued at $5.8 million.
MSF approved $4,887,366 in local and school tax capture for the City of Southfield Brownfield Redevelopment Authority to redevelop 14 acres of property on Northwestern Highway in the city of Southfield for the Dürr Systems, Inc. consolidation project. Dürr, a global manufacturing and engineering firm, plans to consolidate its current locations in Auburn Hills, Wixom and Plymouth into a single metro Detroit campus that will serve as Dürr’s corporate headquarters. The tax increment revenue will be used to alleviate brownfield conditions at the site and for site preparation activities and infrastructure improvements. The project will act as a catalyst for future building improvements and expansions along the Northwestern Highway corridor, a highly visible area within the city that has potential for growth. The project will generate a total capital investment of approximately $40 million and retain approximately 485 permanent full-time jobs. The City of Southfield also approved a 10 year Commercial Rehabilitation Act district that has an estimated savings of $700,000 for the project. The Commercial Rehabilitation district includes a number of adjacent buildings to locally incentivize for future investment within this district.
MSF approved $2,645,110 in local and school tax capture for the City of Grand Rapids Brownfield Redevelopment Authority to redevelop the Waters Building in downtown Grand Rapids. The project involves a complete overhaul of the existing 117-year-old structure into a mixed-use building that will include office, retail, residential and hotel space. The tax increment revenue will be used for selective demolition, lead and asbestos abatement, site preparation and infrastructure improvements. The project will generate a total capital investment of $33.4 million and create 30 new jobs. The Grand Rapids Downtown Development Authority has pledged up to $1,481,127 from the local site remediation revolving fund and $70,000 in grants for access and streetscape improvements.
The County of Ingham Brownfield Redevelopment Authority received MSF approval of $1,105,875 in local and school tax capture for the brownfield redevelopment of the Dart Bank headquarters renovation in the city of Mason. The tax capture will be used to alleviate brownfield conditions at the site and demolish an existing vacant building as well as three existing Dart Bank buildings. The project will generate a total capital investment of $8 million and create six jobs. The Michigan Department of Environmental Quality is considering a $87,147 grant for environmental activities.
The city of Alma was awarded $1 million in Community Development Block Grant funds for job training needed for the Shiloh Die Cast Midwest, LLC expansion project in Alma. Through its subsidiaries, Shiloh Industries, Inc. is a global supplier of lightweighting and noise, vibration and harshness solutions to the automotive, commercial vehicle and other industrial markets. Shiloh Industries, Inc. has locations in North America, Europe and China and approximately 2,700 employees. The company will upgrade existing equipment and add new machinery and equipment for a new vehicle part production with a new vehicle program, investing a total of $16.5 million and creating 45 new jobs. The CDBG funds will provide the necessary financial assistance to facilitate employee onboarding, new equipment/tooling training, and necessary technical training to operate and maintain the new equipment. The city of Alma will administer the grant funds for the company and provide staff resources in support of the project.
The Michigan Strategic Fund and the Michigan Economic Development Corporation today approved the Michigan Entrepreneurial Biotech Community Request for Proposals. The purpose of the RFP is to award a grant to a nonprofit organization that will create a consortium for the Michigan biotech and medical device industry and recommend that ownership of the Michigan Life Science and Innovation Center in Plymouth be transferred to the grantee.
Proposals must be submitted to the MSF electronically to firstname.lastname@example.org by Friday, August 14 at 3 p.m. Proposals will not be accepted via U.S. mail or any other delivery method. Prospective bidders may submit questions regarding the RFP via email by Friday, June 26, 2015 at 3 p.m. to email@example.com.
The MSF will not respond to questions that are not received by this date and time. In addition, questions that are phoned, faxed or sent through regular mail will not be accepted. Responses to all qualifying questions will be posted on Friday, July 10 by close of business on the MSF’s website, http://www.michiganbusiness.org/public-notices-rfps/.
The full RFP will be available later this week at http://www.michiganbusiness.org/public-notices-rfps/.
“It is through the effort of public-private partnerships that today’s projects are taking place, and we’re pleased to support those collaborations,” said MEDC Chief Executive Officer Steve Arwood. “We compete against 49 other states for job-creating expansion projects like these. It is through resources such as the Michigan Business Development and Community Revitalization programs that we are able to drive community and economic development activity throughout Michigan.”
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Legislative leaders praise MSF-Ford Motor Company agreement:
Speaker of the House Kevin Cotter (R-Mt. Pleasant):
"This agreement is an important step forward for Michigan's rapidly recovering economy," said House Speaker Kevin Cotter, R-Mt. Pleasant. "It provides certainty for future state budgets, which allows us to plan ahead and keep state government running smoothly. It also puts a real cap on long-term liabilities, which protects Michigan's hard-working taxpayers and secures funding for other critical state programs. This plan will keep Michigan’s economic recovery going, not just today, but for years to come."
House Minority Leader Tim Greimel (D-Auburn Hills]:
“Ford Motor Co.’s decision to renegotiate its MEGA tax credits and to invest more than $3 billion in our state is great news for Michigan. Ford has proven the cynics wrong when they said corporations would never step up to do what’s right. Ford has also shown that it realizes that it can’t prosper at the expense of the state it has always called home. I thank the leaders of Ford for taking this important step, and I look forward to similar discussions with other major corporations around our state who want to be good corporate citizens.”
Senate Majority Leader Arlan Meekhof (R-Olive Twp.):
“I commend the Ford Motor Company for their willingness to increase transparency and investment in Michigan as a MEGA credit recipient. MEGA credits have presented both opportunities and challenges. The legislature continues to look at ways to maximize the benefits of these credits while at the same time mitigating the unintended impact on our budget. Ford’s proactive reinvestment in our state via the MEGA credit maximizes the positive impact this economic tool can have on our communities.”
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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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