LANSING – Projects expected to generate more than $201 million in total investment and create up to 956 jobs in Michigan gained approval from the Michigan Strategic Fund, the Michigan Economic Development Corp. announced.
Approved by the MSF was aid to the following projects:
* Cosworth, the British manufacturer of automotive electronics and powertrain products, plans a $30 million plant in Shelby Township, which will create 50 jobs. The state is assisting with a $2.1 million Michigan Business Development Program performance-based loan. The plant will produce automotive cylinder heads, with design, development and manufacturing in a single building. The loan will be convertible to a grant based on job creation milestones. Michigan was chosen over a competing site in Indiana. The township will provide tax abatement in support of the project. For career opportunities with Cosworth, visit www.cosworth.com/careers.
* Flex N Gate Detroit LLC plans to build a new plant at the I-94 Industrial Park in Detroit to produce auto parts for Ford Motor Co. The company was founded in 1956 and based in Urbana, Ill. The new plant will generate a total capital investment of approximately $95 million and create up to 650 jobs with the ability to create up to 750 jobs in the future, resulting in a $3.5 million Michigan Business Development Program performance-based grant. Earlier, the Economic Development Corp. of Detroit approved the sale of 30 acres in the industrial park to Flex-N-Gate. The sale is the initial step in building the manufacturing plant on the site. The city is offering support to the project in the form of property tax abatement and a Renaissance Zone related to the project. Individuals interested in career opportunities with Flex N gate should visit http://jobs.flex-n-gate.com/jobs.
* The Charlotte Brownfield Redevelopment Authority received MSF approval of $943,800 in local and school tax capture for the Spartan Motors Inc. expansion project. Of that amount, $398,021 will come from state school tax capture and the remaining $548,779 will come from local tax capture. The completed project will consist of a manufacturing plant and storage site for new vehicles produced by Spartan Motors, a specialty vehicle manufacturer. The project will generate a total capital investment of more than $6.6 million and create 55 full-time jobs. The tax capture will assist with the alleviation of brownfield conditions at the site, including demolition of an existing building, site preparation and infrastructure improvements. Michigan was chosen over a competing site in Indiana. The project is also requesting $28,750 in tax increment financing from the Michigan Department of Environmental Quality, and has been authorized for $17,200 in Environmental Protection Agency assessment grant funds through the Lansing Regional Brownfields Coalition.
* Peregrine PNC LLC plans to redevelop the former PNC Bank building at 108 E. Michigan Ave. in Kalamazoo. The completed project will consist of market rate apartments, commercial space, a fitness center and parking. The project will generate a total capital investment of more than $5.2 million and create 50 full-time jobs, resulting in a $750,000 Michigan Community Revitalization Program performance-based grant. In addition, MSF approved $648,596 in local and school tax capture for the Kalamazoo Brownfield Redevelopment Authority to alleviate brownfield conditions at the site and prepare it for redevelopment.
* MSF also approved an amendment to a previous Michigan Business Tax credit and brownfield work plan for the Grand Rapids Brownfield Redevelopment Authority to make changes in scope to the 601 Bond project located at 610 Bond Ave. NW in downtown Grand Rapids. The amendment includes increasing the amount of local and school tax capture to $5,660,175; the MBT credit amount does not change. The project will be expanded to include a new, 16-story building that will include commercial space, residential units and a parking deck. The project will generate a total capital investment of $53.7 million and create one full-time job, with additional jobs expected in the future. The tax capture will be used to alleviate brownfield conditions at the site and prepare it for development. In addition, the project is requesting $10,000 from the Michigan Department of Environmental Quality in Tax Increment Financing assistance.
* The Port Huron Brownfield Redevelopment Authority received MSF approval for an amendment to a previous brownfield work plan and Michigan Business Tax credit to allow for scope changes to the Former Sperry’s Department Store project in downtown Port Huron. The amendment includes decreasing the amount of local and school tax capture to $285,619; the MBT credit amount does not change. The project will completely renovate the former Sperry’s Department Store into 12 small theaters on the first and third floors, and will include restaurant/lounge, office, and incubator space. The project will generate a total capital investment of nearly $10.2 million and create 50 full-time equivalent jobs. The city of Port Huron is offering a 12-year Obsolete Property Rehabilitation Act exemption on the property that is valued at $875,800.
* The city of Adrian was awarded $1.45 million in Community Development Block Grant funds for façade improvements to six buildings in downtown Adrian. The project will include substantial historic renovation of the exterior of the buildings and is expected to generate private investment of $558,533. MSF also awarded $30,000 in CDBG funds for the city to pay for a third party grant administrator. The city has contributed significant staff time to the project and will also waive all local permitting fees. The buildings are located at 110 E. Church St., 113 W. Maumee, 118 W. Maumee, 124 and 128 E. Monroe, 127-129 E. Maumee, and 150 N. Main.
In addition, MSF approved:
* Up to $3,164,500 in loan collateral in order to support $6.7 million in financing to be provided by Citizens Bank to Digital Terrain Inc., an IT company based in Livonia. The financing will allow Digital Terrain to expand into a new building in Farmington.
* A bond authorizing resolution for the issuance of up to $13,275,000 in private activity bonds by Detroit Renewable Energy LLC to improvements at the Greater Detroit Resource Recovery Facility, one of the largest waste-to-energy plants in the United States.
* A contract with Aviareps China for leisure and travel marketing representation services in China, including creating a strategy to attract more Chinese leisure visitors to Michigan, creating Chinese-language brochures, e-newsletters and managing Chinese social media accounts, working with tour operators to get more Michigan product in their catalogs and representing Michigan at key Chinese travel and tourism trade shows.
* An amendment to an Memorandum of Understanding between MEDC and the Detroit Metro Convention and Visitors Bureau (DMCVB) for an appropriation of $1 million to support efforts to attract national and multi-state events, conventions and conferences – and the out-of-state travelers they bring in – to Michigan. When considering where to hold a major event or conference, organizers often require a monetary guarantee from potential hosts to demonstrate financial capability and commitment to host such an event. Without access to capital to provide those commitments, Michigan communities are at a disadvantage when competing to land major events or conferences. The large special events fund provides access to that capital through a competitive process.
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.