Friday, March 19, 2004
State Tax Credits Fuel Renewal of Two Sites, Creating 11 New Jobs
Governor Jennifer M. Granholm announced today that Single Business Tax (SBT) credits offered through the Michigan Economic Development Corporation (MEDC) will help turn two blighted Detroit properties into retail and housing developments. The projects will spur more than $15.7 million in private investment and create approximately 11 jobs.
"Brownfield tax credits continue to help Detroit transform some of its most blighted properties into centers of social and economic vitality," Granholm said. "Creating retail and residential opportunities in the city's core is essential to Detroit's future economic success."
In her 2004 State of the State address, Governor Granholm announced a focused, seven-point plan for economic growth. So far this year, the Governor and the MEDC have announced the creation or retention of approximately 4,882 jobs as a result of targeted assistance provided by the MEDC.
The $1.1 million in brownfield SBT credits announced today will benefit two projects:
Family Dollar Stores of Michigan, Inc. plans to construct a 10,000-square-foot store on contaminated and blighted property located in the 6300 block of West Vernor on the city's southwest side. A tax credit valued at $77,766 has been offered to help prepare the site for new construction. The developer plans to invest more than $777,662 to build the new store which is expected to create 11 new jobs. The city of Detroit, through its brownfield redevelopment authority, also supported the project through tax increment financing valued at $117,645.
Jefferson Park North, LLC plans to convert 557 parcels of largely tax reverted property into a new, 123-unit, single family home development. The property is bounded by Charlevoix, St. Jean and Lemay streets on Detroit's east side. The developer plans to invest $15 million in the project. The redevelopment will generate a new tax base for both the city and state, helping to stabilize property values of existing homes in the area.
"The power of the brownfield program to create jobs and investment cannot be overestimated," said MEDC President and CEO Don Jakeway. "Without these credits, these properties would continue to sit idle and diminishing the economic potential of the surrounding areas."
The Michigan Economic Development Corporation, a partnership between the state and local communities, promotes smart economic growth by developing strategies and providing services to create and retain good jobs and a high quality of life.