LANSING — The Michigan Economic Development Corp. announced Michigan Strategic Fund approval of business expansions, community improvement projects and a Request for Proposals for the redesign of the official Travel Michigan website, Michigan.org.
The projects are expected to generate nearly $120.6 million in new investments and create 258 jobs in Michigan.
In addition, MSF approved a revised tax break agreement with Fiat Chrysler Automobiles that encourages the company to invest an additional $1 billion in Michigan while capping the state’s liability on previously authorized tax credits.
To view a video on today’s projects, visit this link.
The Michigan Strategic Fund approved the following items:
* The MSF approved a revised agreement with Chrysler Group LLC, now known as FCA US LLC, which caps the state’s liability for previously authorized job retention tax credits and provides incentives for FCA US to invest an additional $1 billion in Michigan in the future. The MSF resolution, approved today, reduces the term of the Global MEGA Tax Credit by two years, sets annual limits on the tax credit value that may be claimed in a given year, and provides stability and predictability for the timing of payments for annual Global MEGA tax credits throughout the life of the tax credit. As part of the agreement, 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. Media reports say the amendment caps the state’s liability under the tax break to about $1.9 billion through 2029.
* Rivian Automotive LLC received a $1.77 million performance-based grant under the MIchigan Business Development Program to establish a research and development center in Dearborn, investing nearly $29.5 million and creating 174 jobs. The company, which is focused on creating software to be used in next-generation vehicle design, chose Dearborn over competing sites in California and Florida. The city of Dearborn has offered support to the project in the form of property tax abatement. Individuals interested in career opportunities with Rivian should visit www.rivian.com.
* The Romulus Brownfield Redevelopment Authority received approval of $1,283,181 in local and school tax capture for non-environmental activities associated with an expansion at Packaging Specialties Inc. PackSpec is at capacity due to rapid growth and plans to renovate a building near its current location to consolidate operations under one roof. The project will generate a total capital investment of $5.6 million and create 50 jobs within the first two years, with an additional 20 jobs added within 10 years. Michigan was chosen over a competing site in Ohio. The tax capture will assist with lead and asbestos abatement activities and substantial exterior and interior demolition costs, as well as demolition costs related to upgrades to heating, electrical and plumbing. The city of Romulus has an Industrial Facilities Tax abatement agreement with the developer which will cap the actual local and school tax capture at $700,000. The project is also requesting $86,175 in tax increment financing for environmental activities from the Michigan Department of Environmental Quality.
* The city of Alpena has been awarded $891,591 in Community Development Block Grant funds for façade improvements needed for the Alpena Furniture and Flooring building and the Olde Owl restaurant in downtown Alpena. This funding will be part of a façade and housing grant agreement totaling $1,291,591, comprised of $891,591 from the MSF and $400,000 from the Michigan State Housing Development Authority. Alpena Furniture and Flooring is a long-standing retail operation in the city. The building will undergo historic renovations and interior improvements that will create 10 residential apartments in the building. The Olde Owl restaurant is also a longtime stakeholder in the city. The new owner plans to make major renovations to both the exterior and interior of the restaurant. The two projects are expected to generate a total private investment of more than $1 million.
* NOMI Developers LLC plans to rehabilitate and repurpose a distressed industrial building in the River’s Edge district located between the Kalamazoo River and downtown Kalamazoo. The completed project will consist of a mixed-use development with restaurant space and 47 residential units. The project will generate a total capital investment of nearly $4.5 million and create five full-time jobs, resulting in a $665,000 Michigan Community Revitalization Program performance-based grant. In addition, the Kalamazoo Brownfield Redevelopment Authority has received approval of $605,000 in local and school tax capture to alleviate brownfield conditions at the site and prepare it for development. The city of Kalamazoo is also providing a $250,000 loan from its Economic Initiative Fund.
* The Lansing Brownfield Redevelopment Authority received approval of $25,195,280 in local and school tax capture for the SkyVue on Michigan project in Lansing. The project will redevelop a former auto dealership on East Michigan Avenue into a viable, mixed-use development with 341 market-rate apartments, commercial space and a multi-level parking structure. The tax capture will alleviate brownfield conditions at the site and make it suitable for redevelopment. The project will be undertaken by Lansing Properties I, LLC and will generate a total capital investment of $80 million and create nine full-time jobs.
Also, the MEDC and Travel Michigan are seeking to re-launch the RFP bid for the rebuild of the Travel Michigan website, www.michigan.org, that the Michigan Strategic Fund board originally approved in March 2015. The purpose for the Request for Proposals was to locate a web design and development organization with a proven record of creating custom web solutions.
The new RFP timelines are as follows:
* Technical and price proposals must be submitted to the MSF electronically to firstname.lastname@example.org by Monday, Dec. 28 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 Wednesday, Dec. 2 by 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 Monday, Dec. 7, by close of business at www.michiganbusiness.org/public-notices-rfps.
Additional details about the RFP will be announced later this week, and the full RFP will be available at www.michiganbusiness.org/public-notices-rfps.
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 98,000 jobs are currently available in a variety of industries.