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Tuesday, June 28, 2016
Projects will generate nearly $85 million in capital investment, create 878 jobs
LANSING, Mich. – Nearly $85 million in new private investment with up to 878 jobs and an authorization to the city of Detroit to use incentives to further develop manufacturing and transportation districts are among the key projects approved today by the Michigan Strategic Fund.
“The commitment by these companies to grow and create jobs in Michigan will strengthen our communities and fuel more and better jobs for our talented workforce,” Gov. Rick Snyder said. “Today’s investments in Michigan and its people show that our efforts are making our state a desirable location for businesses to locate, grow and thrive.”
The Michigan Economic Development Corporation administers programs on behalf of MSF, and serves as the state’s marketing arm and lead advocate for business attraction.
At today’s meeting, the MSF board approved:
City of Detroit–Next Michigan Development Corporation (D-NMDC) – The city of Detroit has received MSF approval as the state’s seventh and final Next Michigan Development Corporation. In its role as a Next Michigan Development Corporation, D-NMDC will seek to attract eligible multi-modal businesses to key employment districts within the city, which have the greatest potential for growth in the industries of manufacturing, transportation, distribution and logistics. The NMDC designation grants the authority to offer tax incentives such as renaissance zones, real and personal property tax exemptions, and local development financing.
The FEV Group, founded in 1978 in Germany, is a powertrain and vehicle design engineering company that supplies the global transportation industry. The FEV Group founded FEV North America Inc. in 1985 in California, relocating to Michigan in 1988. FEV North America is a recognized leader in the design, analysis, and development testing of powertrain and vehicle systems for a broadly diversified group of markets, hybrid and electrical systems, engineered electronics solutions, and a supplier of advanced testing solutions, including full facility responsibility and both hardware and software capabilities.
Today, the company employs about 500 people in Auburn Hills. FEV plans to construct a new state-of-the-art facility that would house a tech center, engineering services and headquarters in the city of Auburn Hills, investing more than $27 million and creating approximately 250 additional jobs. As a result, the company has been awarded a $1.2 million Michigan Business Development Program performance-based grant.
Michigan was chosen over a competing site in South Carolina. The city of Auburn Hills is offering a property tax abatement in support of the project. Individuals interested in career opportunities with FEV should visit http://www.fev.com/careers/jobs-at-fev.html and select “USA.”
JR Automation Technologies, LLC, based in Holland, Mich. designs and manufactures world-class custom automated equipment. Established in 1980, the company provides automated machinery to a global customer base within a variety of industries, including automotive, medical, pharmaceutical, aerospace, construction, furniture, and food processing.
The company has experienced tremendous growth since 2009 and plans to acquire an additional facility near its current operations in Holland Charter Township, creating 250 new jobs and investing up to $5.6 million. As a result of the expansion, JR Automation has been awarded a $2.2 million Michigan Business Development Program performance-based grant. Michigan was chosen as a result of a national search. Holland Charter Township has offered support in the form of 12-year property tax abatement. Lakeshore Advantage played a key role in supporting the West Michigan-based company through the decision making process by catalyzing organizations and available resources to help the company grow in Holland. For career opportunities with JR Automation, visit http://www.jrauto.com/Careers.
The city of Hazel Park Brownfield Redevelopment Authority received MSF approval of $5,751,200 in local and school tax capture for the redevelopment of approximately 36 acres of land at the Hazel Park Raceway complex. Tri-County Commerce Center, LLC plans to construct a 575,000 square foot state-of-the-art building on the site that will be designed to serve industrial tenants. The project is expected to generate $36 million in total capital investment and create 175 full-time equivalent jobs. The tax capture will be used toward the alleviation of brownfield conditions at the site, including demolition activities, lead and asbestos abatement, site preparation, and infrastructure improvements.
River’s Edge Partners, LLC plans to convert a former steel fabrication plant and foundry located on E. Michigan Ave. in downtown Kalamazoo into office and collaborative work/incubator space. The completed project will include offices, retail space, a restaurant, fitness center, collaborative area, and an outdoor terrace facing Portage Creek. The project is expected to attract anchor tenants and technology companies, create incubator space and reinforce Kalamazoo’s position as a regional restaurant destination. The project will generate a total capital investment of $10.4 million and create 118 full-time equivalent jobs, resulting in a $750,000 Michigan Community Revitalization Program performance-based grant.
In addition, the City of Kalamazoo Brownfield Redevelopment Authority received MSF approval for $742,930 in local and school tax capture for the project. The funds will be used alleviate brownfield conditions at the site and prepare it for construction, including asbestos removal, demolition, site preparation activities and infrastructure improvements. The Michigan Department of Environmental Quality is also supporting the project with tax increment financing in the amount of $47,030, a grant in the amount of $191,750 and a loan in the amount of $193,935.
To view a video on the River’s Edge project, visit here:
The city of Adrian was awarded $2,866,446 in Community Development Block Grant funds for the Strongback Four Corners Redevelopment Project in downtown Adrian. Strongback Properties, LLC plans to redevelop three historic properties into commercial space, residential rental housing, and parking, bringing new vitality to the downtown area. The project is expected to generate more than $4.7 million in total capital investment and create eight to 10 full-time equivalent jobs.
MSF also approved $392,375 in local and school tax capture for the City of Adrian Brownfield Redevelopment Authority to alleviate brownfield conditions at the site and prepare it for redevelopment.
River Parc Place II, LLC plans to renovate and stabilize an existing four-story building located at 80 Washington Street in downtown Manistee into a mixed-use development. Originally constructed in 2006 as a residential condominium project, the building was never completed and is considered blighted by the city. Once completed, the building will consist of a mixed-use development with residential rental units and commercial space. The lakefront space will also be renovated to allow lake access boat slips for both public and private use by the local boating community. The project is expected to generate more than $4 million in total capital investment and create four full-time equivalent jobs, resulting in a $636,680 Michigan Community Revitalization Program performance-based grant.
In addition, the city of Manistee Brownfield Redevelopment Authority received MSF approval for $2,980,685 in local and school tax capture to be used toward alleviation of brownfield conditions at the site as well as six adjacent parcels and prepare them for redevelopment.
MSF also approved the following:
• Michigan Translational Research and Commercialization (MTRAC) Ag Bio Innovation Hub – $1 million in MTRAC funding to Michigan State University to serve as the MTRAC Ag Bio Innovation Hub supporting technology transfer from Michigan’s institutions of higher education, non-profit research centers and hospital systems for the commercialization of competitive edge ag bio technologies.
• Gatekeeper Business Incubator grant – $100,000 to Lawrence Technological University to provide support services and business advice to early stage technology companies in the Southfield/Troy area.
• Procurement Technical Assistance Center (PTAC) Program grant – $100,000 in funding to the Flint and Genesee Chamber of Commerce PTAC to provide government contracting support to businesses in the city of Flint.
• Private activity bond financing – Approval of an inducement resolution for private activity bond financing of up to $4.5 million for the construction of a new building and acquisition of equipment in Monitor Charter Township for the F.P. Horak Company/H & J Realty Co., LLC. The project is expected to create up to 71 jobs over a three-year period.
“We are moving forward with new business investment and community revitalization that will mean more and better jobs in our state,” MEDC CEO Steve Arwood said. “Gov. Snyder visited FEV Group in Germany during his European investment mission in April and made the case for the company to expand its automotive engineering services and headquarters presence in Michigan. The meeting paid off, and is resulting in excellent jobs for Michigan residents.”
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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