Tuesday, March 15, 2005
Michael Shore, MEDC
Community Redevelopment Projects Also Receive State Assistance
Governor Jennifer M. Granholm today announced four company expansions and nine brownfield redevelopment projects that are expected to create and retain more than 7,120 jobs and generate more than $558 million in private investment, all as a result of assistance offered by the Michigan Economic Development Corporation (MEDC).
"This is the largest number of economic development projects I have announced in one day since becoming governor," Granholm said. "The number and impact of these diverse projects will have positive repercussions in the form of good jobs for Michigan workers for many years to come."
The expansions and brownfield redevelopments are among 13 economic development projects the Governor announced today. In all, they are expected to create and retain a total of 7,120 Michigan jobs, including 3,196 directly by company expansions and redevelopments.
The 13 projects announced today are expected to create and retain 3,196 jobs directly with an additional 3,924 indirect jobs resulting from increased economic activity associated with the company expansions and redevelopments, according to an economic analysis provided by the University of Michigan.
Assay Designs Inc. plans to invest $18 million to expand its operations in Pittsfield Township, resulting in the creation of 238 new jobs including 86 directly by the company. A state Single Business Tax credit valued at more than $765,000 helped convince the Ann Arbor-based company to expand in Michigan instead of a competing location in Ohio. Assay Designs manufactures and markets specialized products including detection kits and recombinant proteins and antibodies for use by pharmaceutical companies and researchers to investigate the mechanisms of disease. Pittsfield Township has approved tax abatements valued at approximately $632,000 to support the project.
Faurecia, a leading Tier One global auto supplier will invest approximately $40 million to expand in Sterling Heights over a competing site in Ohio. The project is expected to create 942 jobs, including 448 directly by the France-based company. An SBT credit valued at more than $6.3 million helped convince the auto interior component manufacturer to stay and grow in Michigan. The city of Sterling Heights is considering a local tax abatement valued at approximately $4.2 million over 12 years to support the project.
Kennedy Acquisition Inc. d/b/a Emerald Graphics Corp. plans a two-phase, $9 million expansion at sites in Cascade Township and Kentwood. The project is expected to create 719 jobs, including 347 directly by the company. An SBT credit valued at more than $3.1 million helped convince the Kentwood-based manufacturer of plastic molded and painted products to expand in Michigan instead of at a competing location in Texas. Cascade Township and the city of Kentwood are considering local tax abatements totaling more than $202,000 to support the project.
SBC Michigan plans to consolidate operations at its existing facilities in Detroit and Southfield, retaining up to 2,140 jobs including 930 directly by the company. An SBT credit valued at more than $18 million convinced the company to invest $3.7 million to upgrade seven of its existing Michigan network centers as opposed to moving them to competing locations outside the state.
Alpena Marc LLC will use tax capture valued at more than $765,000 to help renovate a portion of the former Fletcher Paper Mill complex in Alpena into the National Oceanic and Atmospheric Administration offices and marine operations center. The existing structure will be redeveloped into offices, research facilities, an interactive museum and residential quarters for visiting scientists and marine biologists. The museum is expected to attract 80,000 visitors annually. Alpena Marc will invest approximately $4 million in the project, which is expected to create and retain seven jobs.
Detroit Diesel Corporation and the Freightliner LLC Group plan to invest more than $275 million to transform the 65-year-old Redford Township plant into a "manufacturing mall" to produce a range of commercial vehicle components for the North American market. The company was awarded more than $13 million in brownfield incentives today to remove obsolete buildings and utilities in preparation for the multi-phased redevelopment. In February 2005, an incentive package including an SBT credit valued at approximately $9.1 million as well as $143,000 in Economic Development Job Training funding was offered to convince the company to expand in Michigan over a competing site in South Carolina. The entire project is expected to create and retain a total of 2,928 Michigan jobs.
East Village LLC will use tax capture valued at $196,420 to prepare 25 parcels of blighted property for the construction of 23 new homes and the renovation of one home in southeast Detroit. The project is part of a larger effort spearheaded by the Jefferson Avenue Housing Development Corporation to revitalize a 23-block area bounded by Kercheval to the north and Jefferson Avenue to the south. The total investment in the project is approximately $6.3 million.
Parkland Investments Inc. will use a $1 million brownfield SBT credit and state and local tax capture valued at more than $1 million to redevelop the former West Middle School in the heart of downtown Grand Rapids into housing and commercial space. The developer will invest more than $12.5 million to renovate and restore the approximately 200,000-square-foot building located at 615 Turner NW into 130 condominium units with the possibility of additional commercial uses. The city of Grand Rapids has approved local tax capture valued at more than $618,000 to support the project.
United Building LLC in partnership with the city of Kalamazoo, Downtown Kalamazoo Inc. and Downtown Tomorrow Inc. will use tax capture valued at $70,000 to redevelop a three-block area in the city's northeast business district. The project includes redeveloping the historic United Electric Building on East Kalamazoo Avenue into office, restaurant and entertainment space. The developer will invest approximately $4.3 million in the project, which is expected to create 50 new jobs.
Developers Eastowne One, Eastowne Two and Eastowne Three LLC will utilize tax capture valued at more than $2 million to redevelop a former landfill site into residential, professional office and mixed retail use. Tenants using the retail space will include a sports medicine center, a home design center and a restaurant. In addition, approximately 86 residential units will be constructed. This project also received approval for a brownfield Single Business Tax credit from the MEDC valued at $4.1 million in December 2004. The developers will invest approximately $41 million in the project, which is expected to create 96 new jobs.
Princeton Properties will demolish the 128,000-square-foot vacant Source Club warehousing and retail building near Eureka Road and construct 204 attached single-family homes using tax capture valued at $1.95 million. Demolition on the site is expected to occur by November 2005 with the final project completed by 2009. Princeton Properties will invest approximately $38.8 million in the project.
"These types of projects are the reason why Michigan was recently named #2 in the nation for new corporate facilities and expansions by Site Selection magazine," MEDC President and CEO Don Jakeway said. "The MEDC has been able to effectively encourage these developments by working closely with companies and our local economic development partners."
In her 2005 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 31,464jobs 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.