November 15, 2005

State Brownfield Credits Open Door to New Private Investment, 40 Jobs

Governor Jennifer M. Granholm today announced two brownfield redevelopment projects in Detroit that will convert unused properties into modern residential space and create up to 40 new jobs. Redevelopment of the Eddystone Hotel and a corner of historic Brush Park in Detroit will involve more than $2 million in private investment. The projects are being assisted by state brownfield Single Business Tax credits approved by the Michigan Economic Development Corporation.

“We are turning eyesores into assets that create jobs and breathe new life into these communities,” Granholm said. “These developments represent the kind of investment that will attract future commerce and the jobs we need in these areas.”

The projects are:

• Boulder Developments LLC, Royal Oak, will use local and state tax capture valued at $1.1 million and a brownfield Single Business Tax credit worth $730,000 to revitalize four properties at the corner of John R and Canfield in northern Brush Park, east of Woodward Avenue. 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 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.

“Turning vacant structures into hubs of new residential and commercial activity is one of the best ways to leverage the state’s investment of taxpayer money,” MEDC President and CEO James Epolito said. “These projects will spark economic resurgence in and around their areas, creating new jobs and opportunity.”
 
The redevelopments are two of nine economic development projects the Governor announced today. In all, they are expected to create a total of 1,573 Michigan jobs. 
 
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.