Tuesday, December 18, 2007
Bridget Beckman, MEDC
Companies Investing more than $550 million to grow in state
Governor Jennifer M. Granholm today announced that the Michigan Economic Development Corporation (MEDC) is helping six companies grow in Michigan and is backing eight community redevelopment projects in Detroit and Dearborn. Combined, the projects are expected to create 2,851 jobs and involve more than $550.8 million in new capital investment in the state.
“Our comprehensive economic plan is setting the stage for new job-creating investments,” Granholm said. “As businesses choose Michigan, they send a message that this is a great place for other companies to invest and create jobs, too.”
The 14 projects announced today:
- ProQuest LLC – Acquired by Cambridge Information Group (CIG) in 2007,ProQuest is a digital repository and provider of scholarly documents from all over the world. CIG plans to grow the ProQuest business which includes building a new data center at ProQuest’s existing site in Ann Arbor. The $19 million project is expected to create 809 new jobs, including 303 directly by the company. A state tax credit valued at $10 million over 10 years helped CIG choose Michigan over a competing site in Maryland. The city of Ann Arbor has proposed to support the project through a local property tax abatement valued at $1.2 million.
- Danotek Motion Technologies– Thetechnology developer and manufacturer of Permanent Magnet Generators, Power Control Electronics and Brushless Motors for power generation industries and advance automotive applications plans to expand its operation and relocate to Pittsfield Township. The new expanded facility would accommodate the manufacture of up to 3 Mega Watt variable speed PM generators for use with wind turbines, CHP (combined heat and power) as well as brushless steering system for electric vehicle application. The new location would allow Danotek to support a fast growing renewable energy market. The project is expected to generate $7.8 million in private investment and 313 new jobs, including 141 directly by the company. A $2.3 million state tax credit helped convince the company to stay and grow in Michigan over competing states. Pittsfield Township is expected to propose local property tax abatement valued at $41,600 over seven years to support the project.
- Accuri Cytometers – The Ann Arbor-based cell analysis tools company is planning to invest $2 million to expand its ScioTownship operations to commercialize its new products. The project is expected to create 215 new jobs, including 88 directly by the company. A state tax credit valued at more than $1.4 million over 10 years convinced the company to expand in Michigan over a competing site in Colorado. Scio Township has approved support of the project with a local property tax abatement valued at $12,800 over a minimum of eight years.
- MS Automotive LLC– The subsidiary of Germany-based Maschinenfabrik Spaichingen GmbH plans to invest more than $21.8 million in a new, custom-built North American headquarters and manufacturing facility in Fowlerville. The project is expected to create 244 new Michigan jobs, including 106 directly by the company. A state tax credit valued at $883,000 over seven years helped convince the company to expand in Michigan over a competing site in Tennessee. The City of Fowlerville is considering a 12-year abatement valued at $1.3 million to support the project.
- Unified Brands Inc. – The manufacturer of restaurant equipment plans to relocate its Arizona operations to its Weidman (Broomfield Twp.) facility. The expansion will generate $6.7 million in investment by Unified Brands and create 327 new Michigan jobs, including 158 directly by the company. A state tax credit valued at more than $1.3 million over seven years helped win the company’s investment over a competing site in another state. Broomfield Township has approved a 12-year abatement valued at approximately $6.7 million to support the project.
- Dow Chemical Company– The company plans to invest over $100 million to expand its Michigan Operations Manufacturing Site in Midland for production of a new automotive filter. The expansion is expected to create 55 new jobs. A state brownfield tax credit valued at $10 million helped convince the company to invest and create jobs in Michigan. The city of Midland will provide additional support through a 12-year abatement worth $4.5 million. The automotive filter project is subject to final approval by the Dow board of directors.
- Argonaut Campus Developer LLC –The College for Creative Studies (CCS) will use a $10 million state brownfield tax credit and state and local tax capture valued at $11.2 million to transform the Argonaut Building located at 485 West Milwaukee Ave. in Detroit’s New Center into a mixed-use campus for art and design education. General Motors will donate the Argonaut Building to CCS for the redevelopment, which will house CCS’s new graduate programs, programs for middle and high school students, dormitory facilities for 261 students and studios. The development will include retail and office space for non-profit organizations and an incubator/accelerator for start-up businesses in design and creative industries. The project is expected to generate capital investment in excess of $120 million and create 200 new jobs.
- FRBD LLC– The developer will use a $1.3 million state brownfield tax credit to convert the historic Federal Reserve Buildinglocated at 160 W. Fort St. in Detroit’s Central Business District into 84 one and two-bedroom apartments with retail and commercial space. The project is expected to generate more than $20.2 million in capital investment and create 12 new jobs.
- Gardenview Estates– A state brownfield tax credit valued at $3.9 million will support Norstar Development USA in the initial stage of a multi-phase residential and mixed-use redevelopment of the former Herman Gardens Public Housing Complex at the corner of Joy Rd. and the Southfield Fwy. in northwest Detroit. The first 186 rental units will be completed in three phases over the next four to five years. This phase of the project supported by the brownfield credit is expected to generate more than $42.3 million in capital investment and create five jobs. The overall plan approved by the Detroit Housing Commission is a $227.2 million mixed-use, mixed-income development consisting of 920 residential units, commercial/retail space, a central park and the recently completed NFL Boys and Girls Club.
- Piquette Square and Southwest Housing Solutions– The developers will use a $1.7 million state brownfield tax credit to redevelop an industrial site on Piquette St. in Detroit that once housed the Studebaker Manufacturing Facility and the Detroit Artillery Armory. The project involves construction of a four-story building with 150 supportive housing units for homeless veterans and retail and commercial space. The project is expected to generate $20 million in capital investment and create 22 new jobs.
- Tireman & Epworth Properties– The city of Detroit will utilize state and local tax capture valued at $753,000 to support the redevelopment of 7.3 acres at the corner of Tireman and Epworth streets in northwest Detroit.The project includes the demolition of two blighted buildings, the renovation of two viable ones and the removal of debris and contaminated soil to make way for the expansion of Parts Galore, an auto parts salvage business. The site will also house a new towing company to support its parent company’s operations throughout southeast Michigan. The project will generate $1.97 million in capital investment and create up to 25 new jobs.
- Urban Development Company LLC –The developer will use a state brownfield tax credit valued at $1.5 million to transform the former Globe Trading Building and Detroit Dry Docks Engine Works on Atwater St. in Detroit north of the marina in Tri Centennial State Park into a mixed-use development with 64 new loft condos, 28 loft apartments, retail/commercial space and indoor parking. The Michigan Department of Natural Resources has proposed locating a visitor’s center for the park in the building. The project is expected to generate $17 million in capital investment and create up to 75 new jobs.
- NorthWoodward Garden Block Development– A state brownfield tax credit valued at $2.2 million will help the development group revitalize a blighted block on the west side of Woodward between Mack and Warren in Detroit. The project involves the restoration of the Garden Theatre and the BlueMoon Building. The theater will be returned to its original use and the Blue Moon will house a new restaurant. A new, three-story building will be constructed with retail and commercial space. Plans also call for a 300-space parking garage. The project will generate $28.7 million in capital investment and create more than 200 new jobs.
- Dearborn Village Partners– A state brownfield tax credit valued at $9.1 million and state and local tax capture worth $46 million will support a multi-phased mixed-use development across 12 sites along Michigan Ave. between Howard and Military streets in Dearborn. The project will completely renovate one city block in the city’s downtown and involve the construction of mixed-use retail and housing, including two 10-story mid-rise condos and a tri-level 881-space parking deck. The project is expected to generate $125 million in capital investment and create 350 new jobs. The West Dearborn Downtown Development Authority is assisting the project with $42.5 million in tax capture for public infrastructure activities.
“Successful economic development depends on great teamwork,” MEDC President and CEO James C. Epolito said.“All of these projects are the result of solid state and local collaboration with our economic development partners around the state.”
In her 2007 State of the State address, Granholm emphasized the importance of making Michigan a global economic powerhouse in the 21st century. Since January 2005, the governor and the MEDC have announced the creation or retention of more than 211,000 jobs as a result of targeted assistance provided by the MEDC.
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. For more information on the MEDC’s initiatives and programs, visit the Web site at www.MichiganBusiness.org
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