November 15, 2005

Community Redevelopment Projects Also Receive State Assistance

Governor Jennifer M. Granholm today announced three company expansions and six brownfield redevelopment projects that are expected to create and retain more than 1,579 jobs and generate more than $472.7 million in private investment, all as a result of assistance offered by the Michigan Economic Development Corporation (MEDC).
 
“Michigan is winning the fight to attract major company expansions and new jobs,” Granholm said. “The number and impact of these diverse projects will have positively impact businesses, workers and communities through out the state for many years to come.”
 
The nine projects announced today are:

• Cadillac Casting Inc. plans to acquire and continue operations at the Hayes Lemmerz International iron foundry in Cadillac, resulting in the retention of 713 jobs,  including 375 directly by the company. A state Single Business Tax credit valued at more than $2.7 helped convince Cadillac Castings to invest in Michigan. Cadillac Casting was formed specifically to purchase the existing ductile iron foundry from Hayes Lemmerz.  The foundry has been in operation since 1920 and supplies cast moldings primarily to the auto industry

• Cobra Sport Inc., a manufacturer of premium race-ready mini-moto cross motorcycles, will invest approximately $1.5 million to relocate its manufacturing facility to Hillsdale. The project is expected to create 132 jobs, including 70 directly by the company. An SBT credit valued at more than $386,000 helped convince the company to invest in Michigan over a competing site in Ohio. The city of Hillsdale is considering a local tax abatement valued at $20,000 over 12 years to support the project.

• Hemlock Semiconductor plans a two-phase, $327 million expansion at its operations in Hemlock. The project is expected to create 463 jobs, including 150 directly by the company. An SBT credit valued at more than $5.1 million helped convince the advanced manufacturer of components for the semiconductor industry to expand in Michigan instead of at a competing location in Kentucky. Thomas Township and the city of Saginaw are considering local tax abatements totaling more than $54 million to support the project.
 
• Federated Properties LLC will use a $4.3 million brownfield SBT credit million to redevelop a former car dealership located in Traverse City’s west side into a 170,000 square-foot mixed-use development. The developer will invest more than $43.9 million to demolish an existing structure and prepare the property for construction of the new development to include 25,000 square feet of retail space, 15,000 office and 130,000 residential. The project is expected to create 150 new jobs.

• Icon on Bond LLC will use local and state tax capture of $1.5 million with its own investment of $55.6 million to transform a former contaminated foundry site in Grand Rapids into two nine-story residential towers with a total of 236 apartments or condos each incorporating two levels of parking. 

• 33 Library LLC will use a state tax credit valued at $1.3 million and local and state tax capture valued at $757,000 in addition to its own investment of $13 million to renovate and convert the eight-story former YMCA building in Grand Rapids to 50 condominium units with on-site parking, outdoor garden, fitness center and pool.

• Boulder Developments LLC will use local and state tax capture valued at $1.1 million to revitalize four properties at the corner of John R and Canfield in northern Brush Park, east of Woodward Avenue in Detroit. The former Melrose Hotel will be converted to 30 condominiums with an adjacent building to be used for heated parking. A third building will be turned into a commercial strip, creating 20 jobs. A vacant parcel may be used for apartments, mini-storage or parking. The city has designated the area a Neighborhood Enterprise Zone which offers significant local tax savings to the developer.

• Eddystone Development LLC will use $948,500 in local and state tax capture and a $641,603 brownfield Single Business Tax credit to transform the former Eddystone Hotel in Detroit into 60 one- and two-bedroom loft-style condos and  street-level commercial space accessible from Park Avenue, just north of I-75 in midtown Detroit. The $6.4 million project is expected to create 20 new jobs. The city is expected to designate the area a Neighborhood Enterprise Zone.

• VJL Real Estate LLC will use a tax credit valued at $1.3 million to support construction of a 246,000-square-foot refrigerator/freezer warehouse for Lipari Foods, adjacent to the company’s current warehouse operations in Warren. An obsolete, 15,000-square-foot structure will be torn down in preparation for the new building. The city of Warren will support the project through local tax increment financing up to $250,000 for demolition and site preparation.

“Michigan’s well-equipped arsenal of economic development tools, a highly trained workforce and strong community collaboration made these projects possible,” MEDC President and CEO James Epolito said. “Without the steps we have taken to create a business friendly environment, Michigan would lose jobs like these to other states.”

In her 2005 State of the State address, Granholm emphasized the importance of making Michigan a global economic powerhouse in the 21st century. Since January 2005 the Governor and the MEDC have announced the creation or retention of more than 64,000 jobs as a result of targeted assistance provided by the MEDC.
 
The Michigan Economic Development Corporation, a partnership between the state and local communities, promotes smart economic growth by developing strategies and providing services to create and retain good jobs and a high quality of life. For more information on the MEDC’s initiatives and programs, visit the Web site at www.michigan.org.