LANSING — The Michigan Economic Development Corp. Tuesday announced Michigan Strategic Fund approval of support for business expansion projects that will result in $53.9 million in new business investment in Michigan and the creation of 130 new jobs in the state.
The MEDC also announced a $22.5 million investment in a new private equity fund that will provide growth funding for Michigan automotive suppliers.
The support for business projects were as follows:
* Fullerton Tool Co., founded in 1942 in Saginaw, manufactures solid carbide cutting tools for the medical, aerospace, automotive, power generation, heavy equipment, recreation, firearms and mold and die industries. The company is experiencing high demand for its products and plans to build its second Saginaw County plant in the Great Lakes Technology Park in Thomas Township. As a result, the company has been awarded a $400,000 Michigan Business Development Program performance-based grant. South Carolina, Tennessee and Kentucky all solicited Fullerton’s investment, but the company chose Michigan. Saginaw County provided 35 acres of shovel-ready property to support the project. Individuals interested in career opportunities with Fullerton Tool should visit www.fullertontool.com. Said Fullerton Tool president Patrick H. Curry: “The Fullerton West Facility will enhance our product offerings and allow us to continue the momentum of strong growth through diversification of product and customers.” Curry thanked the MEDC, the economic development agency Saginaw Future, the Saginaw County Economic Development Corp., Thomas Township and the city of Saginaw for their support.
* Canal Street Brewing Co., LLC (dba Founders Brewing Co.) began in Grand Rapids in 1997 as a small tap room and brewery. Today the company has increased its production by almost 50 times and its tap room sales by about 10 times. The company is expanding its property on Grandville Ave. SW in Grand Rapids, investing $40.4 million and creating 72 jobs. As a result, the company has been awarded a $250,000 Michigan Business Development Program performance-based grant. The City of Grand Rapids is offering support to the project in the form of property tax abatement. Individuals interested in positions with Founders Brewing Co. should visit http://foundersbrewing.com/jobs/. MSF also approved an amended Act 381 Brownfield work plan submitted by the Grand Rapids Brownfield Redevelopment Authority for school and local tax capture valued at $4,281,805 for demolition, site preparation, infrastructure improvements, and streetscaping for the project.
* Covisint Corp., founded in 2000 by the Detroit Three automakers as an online marketplace, and later acquired and then spun off by Compuware Corp., is a provider of cloud-based collaboration and information sharing systems. Covisint plans to lease space and establish a new headquarters in Southfield, investing up to $5.5 million and creating 50 jobs. As a result, the company has been awarded a $1.5 million Michigan Business Development Program performance-based grant. Michigan was chosen over competing sites in Texas and North Carolina. The City of Southfield has offered support to the project in the form of property tax abatement. Individuals interested in career opportunities with Covisint should visit www.mitalent.org.
Also, the MSF approved $22.5 million in loan funding under the MEDC Capital Conduit Program to Grow Michigan Holdings, LLLC, to be invested in Michigan Capital Partners, a new private equity fund. MCP, a collaboration of public and private funding, will be capitalized by a number of private investors from across the state to provide growth funding for Tier 2 and Tier 3 automotive and transportation suppliers with a presence in Michigan. The targeted private investment fund will total $125 million, creating more than $4.50 in private investment for each public dollar invested. It will make investments in companies with $20 million to $200 million in revenue in the transportation value chain: machining, forming, tool and die making, supply chain support and technology. Companies considered for the fund’s investments will be headquartered or have operations in Michigan with plans to expand their facilities and create new jobs in the state.
In addition, MSF approved an amendment to the Events Center Project bond authorizing resolution that was passed at the Sept. 17 board meeting. The amendment removes the bond rating requirement, allowing the bonds to be sold as unrated. MSF also approved an inducement resolution for issuance of $70 million in tax-exempt bonds to purchase the basement through the seventh floor of the Capitol View Building in Lansing to be used for Michigan Senate offices.
The Michigan Business Development Program provides grants, loans and other economic assistance to qualified businesses that make investments or create jobs in Michigan, with preference given to businesses that need additional assistance for deal-closing and for second stage gap financing.
The MSF considers a number of factors in making these awards, including: out-of-state competition, private investment in the project, business diversification opportunities, near-term job creation, wage and benefit levels of the new jobs, and net-positive return to the state. Business retention and retail projects are not eligible for consideration of these incentives.
For more on the MEDC and its initiatives, visit michiganbusiness.org. For Michigan travel news, updates and information, visit michigan.org. Michigan residents interested in seeking employment with any of Michigan’s growing companies should check mitalent.org, where more than 85,000 jobs are currently available in a variety of industries.