Projects will generate $158 million in investment, create 668 jobs
LANSING, Mich. – The Michigan Economic Development Corporation today announced Michigan Strategic Fund approval of business expansions and community improvement projects and an entrepreneurial support request for proposal that are expected to generate more than $158 million in new investments and create 668 jobs.
“Helping businesses grow and locate in Michigan, transforming two of our urban downtown areas, and increasing economic activity at one of the state’s major ports will create more and better jobs and build upon our Great Lakes State quality of life,” Gov. Rick Snyder said.
Carhartt, Inc., founded in Detroit in 1889, is a garment manufacturer best known for work clothes such as jackets, coats, overalls, coveralls, vests and more. The company plans to expand its headquarters in Dearborn, investing nearly $18.6 million and creating 215 jobs. As a result, the company has been awarded a $1.35 million Michigan Business Development Program performance-based grant. Michigan was chosen over competing sites on the East and West Coasts where top-tier talent related to the garment industry is more readily available. Dearborn has offered support to the project in the form of an eight-year property tax abatement. For information on careers with Carhartt, visit www.carhartt.com/content/carhartt-careers. To watch a video on Carhartt, visit here: www.youtube.com/watch?v=fcrgf_qWCeY.
NEAPCO Drivelines, LLC was originally the New England Auto Parts Corporation of Hartford, Conn. and the trademark NEAPCO was adopted in 1924. The company was a supplier of universal joints and shafts to the farm equipment market in the 1930s, and today supplies to OEM manufacturers and the worldwide automotive industry. NEAPCO plans to expand its driveline operations in Van Buren Township and also expand its headquarters in the metro Detroit area, investing $57.7 million and creating 167 jobs. As a result, the company has been awarded a $1.5 million Michigan Business Development Program performance-based grant. Michigan was chosen over a competing site in Mexico. In support of the project, Automation Alley is providing a Foundation Level membership. To learn about career opportunities with NEAPCO, visit www.neapco.com/index.php/careers.
Valiant Corporation (together with its global affiliates and subsidiaries, the Valiant-TMS Group of Companies or Valiant-TMS) is a leading full-service provider of automated production systems, tooling, and specialized machines for a broad range of transportation related end markets including automotive, aerospace & defense, and construction & forestry equipment.
Founded in 1959 in Windsor, Canada, the Valiant-TMS Group of Companies currently employ approximately 1,400 team members in 23 facilities in 14 countries around the globe. The company, through its subsidiary Valiant International, Inc., has been operating an Advanced Technology Engineering Center in Troy since 1983. Valiant TMS has entered into a purchase agreement for a facility in Auburn Hills. This 187,000 square foot facility will provide the company with much needed technical, assembly and training capacity to support future growth in North America. The closing of this acquisition will take place on March 31, 2016 with occupancy planned for the second quarter of 2016.
The project will generate a capital investment of nearly $32.7 million and create 223 jobs over a three year period beginning in spring 2016, resulting in a $2.3 million Michigan Business Development Program performance-based grant. Auburn Hills has also offered support to the project in the form of an eight-year property tax abatement. Individuals interested in career opportunities with Valiant International should visit www.valiantcorp.com/careers_en.html.
HM Ventures Group 6, LLC plans to renovate the vacant, historic Wurlitzer Building located on Broadway in the heart of downtown Detroit into a mixed-use boutique hotel. The completed project will include 106 hotel rooms, a street level café, restaurant, retail and meeting space, and a rooftop bar. The project will generate a total capital investment of nearly $22.3 million and create 48 permanent full-time jobs, resulting in a $3.5 million Michigan Community Revitalization Program performance-based loan.
In addition, MSF approved $1.76 million in local and school tax capture to the Detroit Brownfield Redevelopment Authority to alleviate brownfield conditions and prepare the site for redevelopment. Invest Detroit has committed an $8 million in New Market Tax Credit (NMTC) allocation, and Chase Bank is providing an additional $1 million in NMTC allocation to the project. The project will also generate $2.6 million in federal historic tax credits. To view a video on the Wurlitzer project, visit here: www.youtube.com/watch?v=KTzbikid1Ig.
OMH, LLC plans to renovate the vacant, historic Rowe building in downtown Grand Rapids into a mixed-use building that will include retail and residential space that will include sublevel parking. The project is expected to serve as a catalyst in the revitalization of the north side of the downtown. The project will generate total capital investment of nearly $26.9 million and create 15 full-time jobs, resulting in a $5.4 million Michigan Community Revitalization Program performance-based loan.
MSF also approved $2.58 million in local and school tax capture to the Grand Rapids Brownfield Redevelopment Authority for brownfield alleviation, site preparation and infrastructure improvements for the project. Grand Rapids is supporting the project through Brownfield Tax Increment Financing totaling $1.25 million in a Downtown Development Authority Areaway Grant, a Streetscape Grant, and Building Reuse and Improvement Grant funding totaling $120,000, and a 12-year Neighborhood Enterprise Zone with an estimated value of approximately $1.8 million. To watch a video on the Rowe project, visit here: www.youtube.com/watch?v=-nYkvrZ72KE&feature=youtu.be.
The Michigan Strategic Fund approved up to $3 million from its Investment Fund for the Port of Monroe for brownfield related expenses including dredging and other port-related improvements. The improvements are required to increase accessibility and efficiency at the Port, leading to fewer cargo delays, reduced wear and tear on regional roadways, and will increase the opportunity to identify new trade routes.
In addition, the Monroe Brownfield Redevelopment Authority submitted an Act 381 Brownfield Work Plan for the approval of $3.64 million in local and school tax capture for brownfield activities related to the project. The tax income revenue captured as a result of the Work Plan approval will be used to repay the Investment Fund.
The MSF and MEDC also approved a continuation of the First Customer Program request for proposals in the amount of $1 million over three years. The purpose of the RFP is to award a grant to a nonprofit organization or university for the continued implementation and execution of the program that is currently run by the University of Michigan Institute for Research on Labor, Employment and the Economy. The program provides support services to assist companies and institutions in commercializing competitive edge technologies, building successful, innovative businesses with the potential for high-growth and job retention and promoting a culture of entrepreneurship in Michigan.
Proposals must be submitted to the MSF electronically to firstname.lastname@example.org by Friday, Oct. 16 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 Tuesday, Sept. 29 at 3 p.m. to email@example.com. The MSF will not respond to questions that are not received by the above 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 Tuesday, Oct. 6 by close of business on the MSF’s website, www.michiganbusiness.org/public-notices-rfps/.
The full RFP will be available later this week at www.michiganbusiness.org/public-notices-rfps/.
MSF also approved the following:
“Today’s MSF actions offer further evidence of our commitment to help companies grow and generate new job opportunities for Michiganders,” said MEDC Chief Executive Officer Steve Arwood. “It is through the effort of public-private partnerships that today’s projects are taking place, and we’re pleased to support those collaborations.”
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.