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Tuesday, October 27, 2015
MEDC announces MSF approval of a business expansion and four community improvement projects
LANSING, Mich. – The Michigan Economic Development Corporation today announced Michigan Strategic Fund approval of a business expansion and four community improvement projects that are expected to generate more than $383 million in new investments and create 584 jobs.
“Today’s MSF actions demonstrate that Michigan’s economy continues to expand and diversify,” said MEDC Chief Executive Steve Arwood. “From northern Michigan to the state’s urban regions, these projects reflect the impact of economic development programs, the power of collaboration with private companies, and the promise of a thriving economy that elevates prospects for all Michigan residents.”
Arauco North America is a division of Arauco, a global leader in the development and production of sustainable forest products. Arauco North America is North America’s largest manufacturer of composite panels and particleboard and offers a diverse product line, serving the office furniture and construction industries. The company plans to establish a new particleboard facility in Grayling Township, investing $325 million by 2018 and creating 250 jobs. MSF today approved a 13-year Forest Products Processing Renaissance Zone valued approximately $909,639 per year in support of the project. Michigan was chosen over a competing site in South Carolina.
The project was a collaborative effort of several state agencies, including the Michigan Department of Agriculture, the Michigan Department of Natural Resources, the Michigan Department of Environmental Quality and the Michigan Department of Transportation.
Strand Theater Manager, LLC plans to historically redevelop the Strand Theater in downtown Pontiac into a theater and performing arts center, restaurant and food service facility, and an educational and community venue. The project is expected to attract new capital investment of $12 million and create 90 permanent full-time jobs at an average hourly rate of $18, resulting in a $4.5 million Michigan Community Revitalization Program performance-based loan. The theater is expected to draw more than 150,000 visitors per year, bringing significant foot traffic to the downtown area. The city of Pontiac has supported the project through $7.6 million in previous renovations to the theater and is providing a 12-year Obsolete Property Rehabilitation Tax Abatement.
Bridge and Turner, LLC plans to redevelop property on Bridge Street on the west side of Grand Rapids. The site included blighted, vacant buildings which have been demolished and the property will be redeveloped into two mixed-use buildings that will include space for New Holland Brewery. The project will generate a total capital investment of $25 million and create 219 jobs, resulting in a $2.5 million Michigan Community Revitalization Program performance-based loan.
In addition, the Grand Rapids Brownfield Redevelopment Authority received approval of $2,126,175 in local and school tax capture for the remediation of brownfield conditions at the site.
The Plaza Midtown, LLC project will historically renovate a former medical office building on Woodward Ave. in midtown Detroit into a mixed-use retail and residential building. The project will generate a total capital investment of $21.1 million and create 25 full-time jobs, resulting in a $3.5 million Michigan Community Revitalization Program performance-based equity investment and a brownfield MBT credit of $1 million. The city of Detroit is supporting the project with a 12-year Obsolete Property Rehabilitation Tax Abatement valued at $4.2 million.
The village of Sheridan was awarded $415,000 in Community Development Block Grant funds to remove a blighted, vacant structure that is in danger of collapsing and poses a significant risk to public safety. The project will include hazardous materials abatement, demolition of the structure, site cleanup and proper management of any contaminated soils. The vacant site will be seeded with grass and maintained by the Village until a future use can be determined.
The Michigan Strategic Fund also took the following actions:
Approval funding of $1 million over three years for the University of Michigan Institute for Research on Labor, Employment and the Economy to continue implementing and executing the Entrepreneurial Service Provider First Customer Program. The FCP is a statewide program, collaborating with statewide partners assisting start-ups and small companies diversifying into new industries to identify potential “first customers.” This program significantly supports company growth and formation, job creation and follow on funding in the form of investment and sales to customers.
Approval of a private activity bond financing authorizing resolution for up to $4.1 million for Packaging Specialties, Inc. in Romulus to acquire and re-locate into a larger facility. Upon completion of the project, the company plans to hire an additional 50 employees.
Authorization of bond financing for up to $4.59 million for the YMCA in Niles to refinance a conventional bridge loan which was used to refinance a prior private activity bond issuance.
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.
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