Michigan Strategic Fund approves community improvement projects, Travel Guide recommendation

Tuesday, August 25, 2015

MEDC announces MSF approval of incentives for four community improvement projects and recommendations for the official Pure Michigan Travel Guide

LANSING, Mich. – The Michigan Economic Development Corporation today announced Michigan Strategic Fund approval of incentives for four community improvement projects that are expected to generate more than $79.5 million in new investments and create 134 jobs in Michigan. In addition, MSF approved the official Pure Michigan Travel Guide recommendation and amendments to two contracts for tourism marketing and advertising services.

“Today’s MSF actions demonstrate our commitment to revitalizing Michigan communities and helping companies bring new job opportunities to Michigan residents,” said MEDC Chief Executive Officer Steve Arwood. “These projects will strengthen and further revitalize our downtowns and act as catalysts for viable residential neighborhoods.”

The MSF-approved projects include two in Grand Rapids, one in Detroit and one in East Lansing.

Michigan Community Revitalization Program/Brownfield work plan:

Casamira Detroit, LLC plans to redevelop Casamira Apartments, a 44-unit apartment building located on Delaware Street in the historic New Center district of Detroit. The completed project will include 29 market-rate apartments, 15 moderate-income units and a secured parking lot. The project is expected to generate a total capital investment of nearly $10.2 million and create two jobs, resulting in a $1 million Michigan Community Revitalization Program performance-based grant. The city of Detroit has committed $2.5 million in HOME funds and has approved an Obsolete Property Tax Abatement in support of the project. 

In addition, MSF approved $821,745 in local and school tax capture for the City of Detroit Brownfield Redevelopment Authority to alleviate brownfield conditions at the site.

Brownfield work plan:

The City of Grand Rapids Brownfield Redevelopment Authority was awarded $2,569,765 in local and school tax capture to redevelop 2.8 acres of property located on Clancy Ave. NE between Hastings St. NE, and Trowbridge St. NE for The Gatewayproject in the city of Grand Rapids. The project will consist of demolishing all existing buildings and construction of a three-story apartment building and a detached cottage-style home. The completed apartment building will include retail space, 86 residential market-rate apartments, and a two-level parking ramp. The project will generate a total capital investment of $18.7 million and create 60 permanent full-time jobs. A 12-year Neighborhood Enterprise Zone has been approved for a portion of the project.

Brownfield project amendments:

MSF approved an amendment to the Large Urban Development Area Project Brownfield Project for 20 Monroe Building Company LP in the city of Grand Rapids. Venue Tower, LLC has a current purchase agreement in place and plans to complete the project in two phases: Phase I is the Bobville Venue project, which includes construction of a two-story, 36,000 square foot building with adjacent outdoor space for concerts and festivals at the property located at 12 and 26 Monroe Ave. NW. Phase I will also include a 5,000 square feet addition to the existing historic building known as The B.O.B. Phase II was not part of the original project concept, but will include the construction of a new 12-story building adjacent to the entertainment area that will house approximately 96 market-rate apartments and amenities including a workout facility and club room. The project will generate a total capital investment of $30.7 million, an increase from the original investment, and create 67 full-time, permanent jobs. As a result, MSF approved a change in scope of the original project, added Venue Tower, LLC as qualified taxpayer, and extended time to complete the projects until December 14, 2018.

MSF approved an amendment to the City of East Lansing Brownfield Redevelopment Authority Act 381 Work Plan to allow for $3,668,065 in local and school tax capture to be used for additional improvements to 300 W. Grand River Dr. in East Lansing. An amendment to a previously approved Michigan Business Tax Credit and the additional tax increment financing will allow for a change of scope to the previously approved Holiday Townhouse project for the completion of Phase III, The Gateway, a four-story mixed-use building that will consist of retail, residential and multi-story parking deck. The project will generate an additional $8.5 million in capital investment, bringing the total capital investment to $20 million, and will create five jobs. 

The Michigan Strategic Fund authorized Travel Michigan to enter into a contract with Meredith Corporation for Midwest Living to produce, publish and distribute the official state of Michigan Travel Guide. MSF also approved contract amendments for McCann Erickson USA and Weber Shandwick for tourism marketing and advertising services as well as public relations efforts.

Pure Michigan is a brand representing business, talent and tourism initiatives across Michigan. These efforts are driven by the Michigan Economic Development Corporation, which serves as the state’s marketing arm and lead advocate for business growth, jobs and opportunity with a focus on helping grow Michigan’s economy.

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.