Community projects, huge Fiat Chrysler expansions get state aid

LANSING—Three community revitalization projects expected to generate a total investment of $131 million and create 293 jobs in Michigan have received support from the Michigan Strategic Fund, the Michigan Economic Development Corp. announced.

The Albert Kahn redevelopment project plans to renovate the vacant, historic Albert Kahn office building in the New Center area of Detroit. When completed, the project will include 190 mixed-income residential units, retail space and surface parking. The project is expected to generate a total capital investment of $69.2 million and create five full-time equivalent jobs, and will serve to reactivate a historically significant property in an emerging commercial and residential district of the city. The Detroit Brownfield Redevelopment Authority today received MSF approval of $2,967,675 in local and school tax capture for the remediation of brownfield conditions at the site.

The Cambria @ The Ashton redevelopment project plans to construct a new infill building and renovate an existing building located at 600 W. Lafayette Blvd. and a redevelop a vacant lot located at 659 Howard St. in Detroit. The new building will include retail space, a 154-room hotel and a parking structure. The existing building will be renovated into office, retail, restaurant and hotel amenity space. The two buildings will be connected via a skyway and the project will also include revitalized sidewalks and right-of-way improvements. When completed, the project is expected to generate a total capital investment of $47 million and create 265 jobs, and will revitalize an underutilized, historic resource in Detroit and provide affordable office space in the central business district. The Detroit Brownfield Redevelopment Authority today received MSF approval of $8,448,739 in local and school tax capture for remediation of brownfield conditions at the site. The project is a joint venture between the Means Group, Inc., Koucar Management and the Holdwick Development Group, LLC.

The Kalamazoo Creamery LDHA LP has been awarded $2,555,047 by the MSF to purchase tax exempt bonds and provide performance-based loan support for its mixed-use project that will construct a new 59,420-square-foot, three-story building on a vacant brownfield site near downtown Kalamazoo. The property was formerly the home of the Klovergold Creamery, which delivered dairy products to the Kalamazoo community from the 1950s through the 1980s.  It is anticipated that the finished project will be LEED certified and include 10,500 square feet of commercial space, including a YWCA Children’s Center, with the remaining 48,920 square feet dedicated to the creation of 48 new mixed-income apartments. The project will provide housing, commercial and childcare facilities in the Edison Neighborhood, and will bring density and walkability to a currently vacant property near downtown Kalamazoo. The City of Kalamazoo Brownfield Redevelopment Authority also received MSF approval of local and school tax capture of $280,018 for the remediation of brownfield conditions at the site. The project is expected to result in a total capital investment of nearly $14.7 million and create 23 new jobs.

The MSF also approved a package of incentives for an  investment by Fiat Chrysler that will generate a total private investment of $4.5 billion and create 6,433 jobs in Michigan. The incentives include a $10 million Michigan Business Development Program performance-based grant, tax capture for up to 10 years valued at up to $99 million, and tax exemptions valued at up to $31.5 million. To read more about the project, visit here.

In addition, MSF approved a one-year extension and $350,000 grant award to the Michigan Translational Research and Commercialization (MTRAC) Advanced Materials Innovation Hub at Michigan Technological University to help promote and stimulate additional growth throughout the state. To learn more, visit here.

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