Business expansion, community improvement projects gain state approval
Tuesday, July 28, 2015
MEDC announces MSF approval of business expansion, two community improvement projects, and other actions
LANSING, Mich. – The Michigan Economic Development Corporation today announced Michigan Strategic Fund approval of a business expansion, two community improvement projects, and other actions expected to generate $83.3 million in new investments and create 510 jobs.
“Today’s projects, including a major Chinese automotive investment in Detroit and transformational projects in two of our downtowns in Albion and Royal Oak, will fuel new economic activity across Michigan, strengthen communities, and create well-paying jobs for our residents,” MEDC Chief Executive Officer Steve Arwood said.
The Michigan Strategic Fund approved the following items:
Michigan Business Development Program:
YFS Automotive Systems, Inc. is a Tier 1 supplier of fuel tanks and urea systems for automotive OEMs. The company was established in 1997 as ABC Group Fuel Systems, Inc. and was purchased in 2014 by Rongshi International, a Chinese-owned automotive supplier who Governor Snyder met with last November during his investment mission to China. The company plans to acquire approximately 30 acres of vacant industrial property in the city of Detroit to construct a 150,000 square-foot facility to design, test, and manufacture automotive fuel system components. The project will generate $26.9 million and create 160 new jobs, resulting in a $1.3 million Michigan Business Development Program performance-based grant. Michigan was chosen over a competing site in Ohio. The city of Detroit has offered support to the project in the form of property tax abatement. Individuals interested in career opportunities with YFS Automotive should visit www.YFSauto.com.
Michigan Community Revitalization Program:
Downtown Albion Hotel, LLC plans to construct a new four-story boutique hotel and conference center in downtown Albion. The project will encompass nearly an entire city block and redevelop approximately 1.25 acres of property located on 13 parcels. The 72-room hotel will offer a mix of standard rooms and extended stay suites. A 3,000 square foot conference center will be available for meetings, weddings, banquets and community events. The project will generate a total capital investment of more than $8.4 million and create 20 jobs, resulting in a $1 million Michigan Community Revitalization Program performance-based grant. The City of Albion Brownfield Redevelopment Authority has also received approval of $963,146 in local and school tax capture for brownfield alleviation, demolition, site preparation and infrastructure improvements at the site. Albion College will provide a loan in the amount of $4 million.
To watch a video on the Downtown Albion Hotel project, visit https://youtu.be/jP_0LYMvxOA.
Trailhead RO, LLC plans to create a new mixed-use development on N. Main Street in downtown Royal Oak. The project includes plans to replace an obsolete car dealership that has been vacant since 2008 and create a modern, mixed-use district that will include a 120-room Hyatt Place Hotel and a mixed-use building with apartments, retail and office space and a parking deck. The project will generate a total capital investment of $48 million and create 144 jobs, resulting in a $4.5 million Michigan Community Revitalization Program loan participation. The city of Royal Oak is supporting the project through up to $3 million in tax increment financing reimbursements.
Michigan Supplier Diversification Fund – Collateral Support Program:
Technical Training, Inc. (TTI), headquartered in Rochester Hills, is a global provider of training materials, research applications, consulting and staffing solutions for industries like automotive, pharmaceutical and cosmetics, financial services, telecommunications, industrial manufacturing, hospitality, and retail. Given the large amount of work performed for customers located outside of the US, TTI carries a high concentration of foreign accounts receivable that limits its ability to access working capital through conventional financing. With Michigan Strategic Fund approval, a collateral pledge of up to $4.99 million will be made to back a $10 million working capital line of credit from FirstMerit Bank. TTI anticipates adding 86 employees in Michigan within six months of the loan closing and an additional 100 employees in Michigan within two years of the loan closing.
In other action, MSF today terminated a High-Technology MEGA Tax Credit and amended a Battery/Battery Related Manufacturing Credit for Townsend Energy Solutions for the company’s advanced battery manufacturing facility in Wixom approved in 2011 and 2012, respectively. The company’s battery credit was reduced from $50 million to $30 million.
The estimated savings for the state as a result of these modifications is $26.3 million ($20 million for the battery credit change and $6.3 for the High-Tech MEGA credit termination). Additional changes include moving the project site from Wixom to Pontiac and requiring the company to establish programs or partnerships that benefit Pontiac school students.
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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