State OK's Aid For Projects Creating 568 New Jobs, $97M Investment

LANSING — The Michigan Economic Development Corp. Wednesday announced Michigan Strategic Fund approval of four business expansions and seven community revitalization projects in Southeast and West Michigan that will generate $97.4 million in private investment and create 568 jobs.

The MSF approved incentives for the following projects:

Michigan Business Development Program:

* CDK Global Inc. plans to expand its operations in downtown Detroit, leasing additional space, creating 100 jobs in data processing, hosting and related services. CDK is the former Dealer Services Division of Automatic Data Processing Inc. and is now an independent, publicly traded company. It bills itself as the largest provider of IT and digital marketing and advertising services to the auto industry, with clients in more than 100 countries. As a result of this expansion, the MSF awarded CDK a $1 million Michigan Business Development performance-based grant. In April 2013, the company was awarded a $1.5 million grant to establish the office in Detroit and create 150 jobs. As of May 2014, the company surpassed its initial milestone by adding 100 of the 150 jobs required under the incentive, and is on schedule to meet its hiring commitment and successfully collect the entire grant in the near future. Individuals interested in employment opportunities with CDK should visit www.CDKGlobal.com.

* Harman International Industries plans to consolidate six of its offices in the Detroit area and build a new complex in Novi, investing nearly $45 million and creating 150 new jobs. Harman, a manufacturer of audio and entertainment systems for the consumer, professional and automotive markets, operates its Harman Becker Automotive Systems Inc. subsidiary out of seven locations in Novi and Farmington Hills with no room to expand. As a result of this growth, the company has been awarded an $800,000 Michigan Business Development Program performance-based grant. Michigan was chosen over competing sites in other states including Illinois, California and Colorado. Novi plans to support the project in the form of property tax abatement. Individuals interested in career opportunities should visit jobs.harman.com.

* Nexthermal Corp. plans to expand its operations in Battle Creek, investing $2 million and creating 50 new jobs. Founded in 1991, Nexthermal offers electric heaters, heater based assemblies and engineering services worldwide. As a result of this expansion, the company has been awarded a $250,000 Michigan Business Development Program performance-based grant. Nexthermal chose Michigan over competing sites in Alabama, Oklahoma, Georgia, China and India. Battle Creek plans to offer support to the project in the form of an Industrial Facility Tax Exemption. For Information on Careers at Nexthermal visit this link or send resumes to jobs@nexthermal.com. To learn more about Nexthermal’s products and services, visit www.nexthermal.com.

* Sunrise Windows Ltd. plans to add manufacturing, office and showroom space to its location in Monroe County’s Bedford Township, creating 100 jobs and investing $5.1 million. Sunrise, established in Michigan in 1997, manufactures custom-made replacement windows, sliding doors and interior wood trim. Based on its expansion, Sunrise has been awarded a $350,000 Michigan Business Development Program performance-based grant. Michigan was chosen over a competing site in Ohio. Bedford Township is anticipating support of the project though a property tax abatement. For information on careers with Sunrise Windows, visit www.sunrisewindows.com.

Michigan Community Revitalization Program:

* 751 Griswold Detroit LLC plans to redevelop the former First State Bank Building into a mixed-use building in Detroit. The completed project will include restaurant space on the first and mezzanine levels, and office and tech incubator space on the second through fourth floors. The project will see the investment of nearly $4.5 million and create 70 full-time jobs, resulting in a $682,279 Michigan Community Revitalization Program performance-based grant. Detroit is supporting the project with a 12-year Obsolete Property Rehabilitation Tax abatement valued at $883,000.

* 1400 Wealthy LLC plans to construct two mixed-use, multi-story buildings at 1400 and 1415 Wealthy St. in Grand Rapids. The finished project at 1400 Wealthy will consist of a three-story building with 19 market-rate apartments and retail space on the ground floor. The site at 1415 Wealthy will include a four-story building with 16 residential units and retail space, as well as on-site parking. The project represents an investment of $5.5 million and create two full-time jobs, resulting in an $800,000 Michigan Community Revitalization Program performance-based grant. Also, the Grand Rapids Brownfield Redevelopment Authority will use local and school tax capture valued at $191,700 for demolition, site preparation and infrastructure improvements at the property.

* 5734 Woodward LLC plans to redevelop a three-story building at 5734 Woodward in Detroit. The completed project will include retail space on the first floor and residential units on the second and third floors. The façade of the building will be historically recreated to the original 1911 design and the rear portion of the site will be cleared and repaired for parking for the residents and retail patrons. The project represents an investment of nearly $1.6 million and will create 10 full-time jobs, resulting in a $240,625 Michigan Community Revitalization Program performance-based grant. The City of Detroit is offering support to the project with a Neighborhood Enterprise Zone tax abatement valued at $430,000.

* Artspace Projects Inc. plans to renovate two historic buildings and one non-historic building at 13615 Michigan Ave. in Dearborn. The project will convert the current Dearborn City Hall campus into a mixed-use arts campus that will include 53 affordable live-work residential spaces targeted to artists. The development will also create a variety of commercial spaces including artist studios, corridor galleries and a creative entrepreneurship center that will provide support services to the artists. The project represents an investment of $15.8 million and will create four full-time jobs, resulting in a $1 million Michigan Community Revitalization Program performance-based grant. Dearborn has approved $500,000 in HOME funds, a loan of up to $400,000 through the Downriver Community Conference Brownfield Consortium and a 20-year Payment in Lieu of Taxes valued at $1.3 million. The project is also receiving federal historic tax credits, federal low-income housing tax credits, and grants from the Ford Foundation and Severstal International.

* West Fort Street Properties LLC and the American Lightweight Materials Manufacturing Innovation Institute plan to redevelop a blighted and vacant building at 1400 Rosa Parks Boulevard in the Corktown area of Detroit into the new ALMMII research center. The project represents an investment of nearly $4.4 million and will create 30 jobs. As a result, the project has been awarded a $1 million Michigan Community Revitalization Program performance-based grant. Detroit plans to provide $180,000 in Community Development Block Grant funds to the project. The project is also leveraging more than $140 million through federal funds, state funds and non-government sources.

Community Development Block Grant:

* The City of Sturgis has been awarded $442,000 in Community Development Block Grant funds to be used toward job training for the Sturgis Molded Products expansion project in Sturgis. Sturgis Molded Products, a custom plastic injection molding company founded in 1966, is investing more than $3.3 million in the project, which will expand the company’s production capabilities and create up to 50 new full-time jobs. The company has agreed that at least 26 of the jobs will be held by low to moderate income persons. The City of Sturgis will provide support to the project through property tax abatement valued at $343,000. For information on careers with Sturgis Molded Products, visit http://www.smpco.com/jobs.aspx

Brownfield Work Plan:

* The Detroit Brownfield Redevelopment Authority will use local and state tax capture valued at $346,180 to redevelop the four-story building at 711 W. Alexandrine in Detroit. The building will be converted into 36 modern, market-rate residential units and will include retail space in the garden level. The project will generate a total capital investment of nearly $6.8 million and create two jobs. The City of Detroit is also supporting this project with an Obsolete Property Rehabilitation Act abatement valued at approximately $1.1 million.

For more on the MEDC and its initiatives, visit michiganbusiness.org. Michigan residents interested in seeking employment with any of Michigan’s growing companies should check mitalent.org, where more than 89,000 jobs are currently available in a variety of industries.

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