LANSING — The Michigan Economic Development Corp. announced Michigan Strategic Fund approval of a business expansion, two community improvement projects, and other actions expected to generate $83.3 million in new investments and create 510 jobs.
The MSF approved the following items:
Michigan Business Development Program:
* YFS Automotive Systems Inc. received a $1.3 million Michigan Business Development Program performance-based grant to buy 30 acres of vacant industrial land in Detroit to build a 150,000-square-foot plant to design, test and build automotive fuel system components. The project will generate $26.9 million in investment and create 160 new jobs. YFS is a supplier of fuel tanks and urea systems for automakers. The company was established in 1997 as ABC Group Fuel Systems, Inc. and was purchased in 2014 by
Rongshi International, a Chinese-owned automotive supplier who Gov. Rick Snyder met with last November during his investment mission to China. Michigan was chosen over a competing site in Ohio. The city of Detroit has offered support to the project in the form of property tax abatement. Individuals interested in career opportunities with YFS Automotive should visit www.YFSauto.com.
Michigan Community Revitalization Program:
* Downtown Albion Hotel LLC received a $1 million Community
Revitalization Program performance-based grant to help construct a new four-story boutique hotel and conference center in downtown Albion. The project will encompass nearly an entire city block and redevelop approximately 1.25 acres of property located on 13 parcels. The 72-room hotel will offer a mix of standard rooms and extended stay suites. A 3,000 square foot conference center will be available for meetings, weddings, banquets and community events. The project will generate a total capital investment of more than $8.4 million and create 20 jobs. The Albion Brownfield Redevelopment Authority has also received approval of $963,146 in local and school tax capture for brownfield alleviation, demolition, site preparation and infrastructure improvements at the site.
Albion College will provide a loan in the amount of $4 million. To watch a video on the Downtown Albion Hotel project, visit
* Trailhead RO LLC received a $4.5 million Michigan Community
Revitalization Program loan participation to create a new mixed-use
development on North Main Street in downtown Royal Oak. The project includes plans to replace an obsolete car dealership that has been vacant since 2008 and create a modern, mixed-use district that will include a 120-room Hyatt Place Hotel and a mixed-use building with apartments, retail and office space and a parking deck. The project will generate a total capital investment of $48 million and create 144 jobs. The city of Royal Oak is supporting the project through up to $3 million in tax increment financing reimbursements.
Michigan Supplier Diversification Fund – Collateral Support Program:
* Rochester Hills-based Technical Training Inc. is a global provider of training materials, research applications, consulting and staffing solutions for industries like automotive, pharmaceutical and cosmetics, financial services, telecommunications, industrial manufacturing, hospitality, and retail. Given the large amount of work performed for customers located outside the United States, TTI carries a high concentration of foreign accounts
receivable that limits its ability to access working capital through
conventional financing. With Michigan Strategic Fund approval, a collateral pledge of up to $4.99 million will be made to back a $10 million working capital line of credit from FirstMerit Bank. TTI anticipates adding 86 employees in Michigan within six months of the loan closing and an additional 100 employees in Michigan within two years of the loan closing.
In other action, MSF said it terminated a High-Technology MEGA Tax Credit and amended a Battery/Battery Related Manufacturing Credit for Townsend Energy Solutions for the company’s advanced battery manufacturing plant in Wixom approved in 2011 and 2012, respectively. The company’s battery credit was reduced from $50,000 to $30,000.
The estimated savings for the state as a result of these modifications is $26.3 million ($20 million for the battery credit change and $6.3 for the High-Tech MEGA credit termination). Additional changes include moving the project site from Wixom to Pontiac and requiring the company to establish programs or partnerships that benefit Pontiac school students.
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 95,000 jobs are currently available in a variety of industries.