LANSING — The Michigan Economic Development Corp. announced Michigan Strategic Fund approval of business expansions, community improvement projects and an entrepreneurial biotech Request for Proposals that are expected to generate nearly $146.3 million in new investments that could create or retain 970 jobs.
In addition, MSF approved a revised MEGA agreement with Ford Motor Co. that encourages the company to invest an additional $3.1 billion in Michigan while capping the state’s liability on previously authorized tax credits.
The Michigan Strategic Fund and the Michigan Economic Development Corp. approved the Michigan Entrepreneurial Biotech Community Request for Proposals. The purpose of the RFP is to award a grant to a nonprofit organization that will create a consortium for the Michigan biotech and medical device industry and recommend that ownership of the Michigan Life Science and Innovation Center in Plymouth be transferred to the grantee.
Proposals must be submitted to the MSF electronically to firstname.lastname@example.org by Friday, Aug. 14 at 3 p.m. Proposals will not be accepted via U.S. mail or any other delivery method. Prospective bidders may submit questions regarding the RFP via email by Friday, June 26 at 3 p.m. to email@example.com. The MSF will not respond to questions that are not received by this date and time. In addition, questions that are phoned, faxed or sent through regular mail will not be accepted. Responses to all qualifying questions will be posted on Friday, July 10 by the close of business on the MSF’s website, http://www.michiganbusiness.org/public-notices-rfps/.
The full RFP will be available later this week at http://www.michiganbusiness.org/public-notices-rfps/.
The Michigan Strategic Fund approved the following items:
* A revised agreement with Ford that caps the state’s liability for previously authorized job retention tax credits and provides incentives for Ford to double its investment in Michigan in the future. The MSF resolution combines two previous MEGA agreements with the company and limits its potential tax credit claims to 40,200 retained jobs through the end of 2025. To receive the maximum credits, the agreement would require Ford to invest an additional $3.1 billion for a total of $6.2 billion since 2009. The company is also required to maintain a minimum of 17,400 full-time jobs, at least 8,900 of which must be salaried positions. As part of the agreement, the state’s obligations are capped and the company will provide periodic forecasts of its estimated tax credits to the state to assist the MSF and state of Michigan in budget planning.
* A $6 million Michigan Business Development Program incentive to Ferrous CAL Co., an affiliate of Ferragon Corp., a steel processor with operations in Michigan, Ohio, Kentucky, and Mississippi. The company is building a new $50.2 million plant on West Jefferson Avenue in Gibraltar that will create 100 jobs. The MSF and the Wayne County Brownfield Redevelopment Authority also approved an Act 381 Work Plan for local and school tax capture estimated to be worth $4,511,454. Incentive assistance will allow the company to alleviate brownfield conditions on the property and complete the project, including demolition, lead and asbestos survey and abatement, site preparation and infrastructure improvements.
* A $1.6 million Michigan Business Development Program performance-based grant to Marada Industries Inc., a subsidiary of the Canadian auto supplier Magna International Inc. that does business as Cosma Body Assembly Michigan. The company is an auto supplier and engineers and assembles complete vehicles, primarily for sale to auto manufacturers. The company plans to build a new 150,000-square-foot plant on 32 acres in Oakland County’s Lyon Township. The company will spend $56 million on the plant, which will create 250 jobs. Michigan was chosen over competing sites in multiple locations. Lyon Township is also giving the plant a property tax abatement, the value of which wasn’t immediately available. Individuals interested in career opportunities with Marada Industries should visit http://www.magna.com/careers.
* A $3 million Michigan Community Revitalization Program loan at 2.5 percent interest and a term of 7 years to the Lofts on Alabama, a project to redevelop an existing commercial building and construct a new building on Alabama Avenue in downtown Grand Rapids. The project will include demolition work, improvements and rehabilitation of the existing obsolete building, construction of a new three-story building on an adjacent site and infrastructure improvements to the sites. The final project will consist of 103 studio, one- and two-bedroom residential units as well as surface parking and a parking ramp. The project will generate a total capital investment of $20 million and create two jobs. In addition, the Grand Rapids Brownfield Redevelopment Authority received MSF approval for $2,825,000 in local and school tax capture for demolition, asbestos abatement, site preparation, infrastructure improvements, construction of the parking ramp and contingency funds. The city of Grand Rapids will contribute approximately $1.2 million in local brownfield tax increment financing and a 10-year Obsolete Property Tax Abatement valued at $658,697.
* A $1.5 million Michigan Community Revitalization Program performance based loan to Woodward and Erskine LLC, which plans to construct a five-story building for the Scott at Brush Park project in downtown Detroit that will include retail, restaurant and residential space along with underground parking. The project will generate a total capital investment of more than $61.2 million and create 50 jobs. In addition, the City of Detroit Brownfield Redevelopment Authority received MSF approval for an amendment to a work plan submitted in 2006 for $7.2 million in demolition, infrastructure, lead and asbestos abatement and site preparation costs for an area that is no longer part of the project. The amended work plan is $7,790,631 in local and school tax capture for infrastructure improvements related to construction of the underground parking and interest costs for the commercial loans on the project. The city of Detroit is supporting the project through its participation in the Brownfield Tax Increment Financing plan, as well as a 10-year Commercial Rehabilitation Act abatement valued at $5.8 million.
* $4,887,366 in local and school tax capture for the Southfield Brownfield Redevelopment Authority to redevelop 14 acres of property on Northwestern Highway in Southfield for the Dürr Systems Inc. consolidation project. Dürr, a global manufacturing and engineering firm, plans to consolidate its current locations in Auburn Hills, Wixom and Plymouth into a single metro Detroit campus that will serve as Dürr’s corporate headquarters. The tax increment revenue will be used to alleviate brownfield conditions at the site and for site preparation activities and infrastructure improvements. The project will generate a total capital investment of approximately $40 million and retain approximately 485 permanent full-time jobs. Southfield also approved a 10 year Commercial Rehabilitation Act district that has an estimated savings of $700,000 for the project. The Commercial Rehabilitation district includes a number of adjacent buildings to locally incentivize for future investment within this district.
* $2,645,110 in local and school tax capture for the Grand Rapids Brownfield Redevelopment Authority to redevelop the Waters Building in downtown Grand Rapids. The project involves a complete overhaul of the existing 117-year-old structure into a mixed-use building that will include office, retail, residential and hotel space. The tax increment revenue will be used for selective demolition, lead and asbestos abatement, site preparation and infrastructure improvements. The project will generate a total capital investment of $33.4 million and create 30 new jobs. The Grand Rapids Downtown Development Authority has pledged up to $1,481,127 from the local site remediation revolving fund and $70,000 in grants for access and streetscape improvements.
* $1,105,875 to the County of Ingham Brownfield Redevelopment Authority in local and school tax capture for the brownfield redevelopment of the Dart Bank headquarters renovation in Mason. The tax capture will be used to alleviate brownfield conditions at the site and demolish an existing vacant building as well as three existing Dart Bank buildings. The project will generate a total capital investment of $8 million and create six jobs. The Michigan Department of Environmental Quality is considering a $87,147 grant for environmental activities.
* $1 million in Community Development Block Grant funds to the city of Alma for job training needed for an expansion project at the Shiloh Die Cast Midwest LLC auto parts plant in Alma. The company will upgrade existing equipment and add new machinery and equipment for a new vehicle part production with a new vehicle program, investing a total of $16.5 million and creating 45 new jobs. The CDBG funds will provide financial assistance to facilitate employee onboarding, new equipment, tooling training, and technical training to operate and maintain the new equipment. The city of Alma will administer the grant funds for the company and provide staff resources in support of the project.