July 15, 2004 - - Governor Jennifer M. Granholm today announced $2,712,872 in state-funded strategic transportation investments that will leverage more than $600 million in private sector development, create 415 new jobs, and retain 302 jobs.
MDOT's Transportation Economic Development Fund (TEDF) will work with local governments to provide a total of $3,707,448 in transportation-related investments for five road projects that will help provide Michigan jobs and fuel economic growth.
"These targeted projects are essential to job creation and growing Michigan's economy," Granholm said. "We are very pleased to partner with local governments and industry to invest state transportation dollars where they yield a great return."
Funded through MDOT's Transportation Economic Development Fund, the improvements include resurfacing, reconstruction, widening, road alignment and other upgrades considered crucial to economic development. The TEDF was enacted by the Michigan Legislature in 1987 to assist in the funding of highway, road, and street projects necessary to support economic growth. The Category A or "Target Industries Program" is specifically aimed at providing transportation improvements that encourage private investment in Michigan that creates or retains jobs.
MDOT collaborated with the Michigan Economic Development Corporation (MEDC) to select five transportation improvement projects in Delta, Menominee, Monroe, Montmorency, and Wayne counties. The improvements will help accommodate increased traffic and provide more efficient commercial routes for five new and expanding private firms. Combined, these firms will invest $640 million and will result in 415 new and 302 retained jobs for the state of
Michigan.
"Businesses large and small need a solid transportation network to succeed," said State Transportation Director Gloria J. Jeff. "MDOT is proud to partner with private industry and state and local agencies to invest in strategic road improvements that will pay off for years to come."
The TEDF will fund $2,712,872 of the $3,707,448 in work. Local matches will total $994,576 (27%) of the transportation project costs.
"For every state transportation dollar spent on these public road improvements, the private sector is investing $236. The TEDF is clearly one of our most effective tools for growing Michigan's economy," said Director Jeff.
APPROVED TEDF PROJECTS BY COUNTY
Delta County
The Delta County Road Commission will widen and reconstruct approximately seven miles of County Road 511 from three miles south of US-2 to the Halquist Stone development site. Halquist Stone quarries and finishes high quality stone used in commercial, structural and landscaping applications. Reconstruction of the seal coat road will allow for unrestricted loading during seasonal weight restrictions. The company’s $1.1 million investment will result in the creation of 30 new jobs. The proposed cost of transportation improvements is $1,118,500, including $658,500 in state TEDF funds and $460,000 (41%) from the Delta County Road Commission.
Menominee County
The city of Menominee will reconstruct and make safety improvements on 34th Avenue between US-41 and 11th Street in order to support a $2 million investment by the L.E. Jones Company. L.E. Jones is the sole certified supplier of heavy duty exhaust valve inserts for Cummins and the sole supplier for intake and exhaust valve inserts for Caterpillar. They also supply valve seat inserts to 100 additional companies, as well as 100% of the American aircraft market. L.E. Jones will add 25 new employees at their facility by 2005. The proposed cost of transportation improvements is $101,068, including $64,068 in state TEDF funds and $30,000 (37%) from the city of Menominee and the L.E. Jones Company.
Monroe County
The Monroe County Road Commission will perform major repairs on Ann Arbor Road between Hatter and Cone Roads in support of the recently announced expansion of Global Engine
Manufacturing Alliance, LLC. The project will include concrete replacement, joint repairs,
surface grinding, and shoulder paving. Global Engine Manufacturing Alliance, LLC was formed by DaimlerChrysler Corporation, Hyundai Motor America and Mitsubishi Motors North America for the purpose of jointly producing in-line 4-cylinder gasoline engines to be used in future generations of vehicles of the three partners. This project involves the second phase of
development of a joint manufacturing facility to produce 2.4L, 2.0L, and 1.8L 4-cylinder
aluminum engines. The expansion will focus on additional capacity for the manufacture of
product for the NAFTA region and the engines will be installed in DaimlerChrysler, Hyundai and Mitsubishi vehicles. Global Engine Manufacturing Alliance, LLC will invest an additional $323,000 million and create 300 more jobs by 2005. Their decision to expand at this location was based, in part, on the recent and proposed transportation improvements in the immediate area of their facility. The proposed cost of transportation improvements is $1,268,680 including $1,014,994 in state TEDF funds and $453,736(20%) from Monroe County Road Commission.
Montmorency County
The village of Hillman, in cooperation with the Montmorency County Road Commission, will upgrade Carrier Road to all-season status from County Road 451 to the east boundary of the Agricultural Renaissance zone, approximately 1200 feet east of Industrial Drive. This work, which is in support of two developments, will include a new aggregate base course, ditching, and new bituminous pavement.
Sunrise Aquaculture, LCC will operate a high tech "recirculating agriculture" facility to produce 1,200,000 pounds of yellow perch per year. The plant will use waste heat from Hillman Power Company’s wood fired electric generating plant to heat the well water and plant. The perch will be sold to restaurant and grocery outlets throughout the mid-west. Sunrise Aquaculture will invest over 8 million dollars in the new facility, creating 30 jobs by 2006 and will be the anchor project for a 40-acre "Agricultural Renaissance Zone," which require all-season access.
Precision Millworks Inc. produces premium kiln-dried Aspen, Ash & Base Wood Architectural Moldings and Millwork. Since completing a new plant and drying kilns in the Hillman Industrial Park in late 2002, the company has steadily increased production and will be expanding at their current location. The company will also open a new 3.1 million dollar facility on Carrier Road in order to meet demand and allow them to process higher value hardwoods like Oak and Maple, which take longer to dry and require more capacity. Precision Millworks plans to create 30 new jobs by 2006.
The proposed cost of transportation improvements is $193,300 including $153,840 in state TEDF funds and $38,460 (20%) from the Village of Hillman.
Wayne County
MDOT's Metro Region will perform major repairs on Fort Street, in the city of Detroit in support of Marathon Ashland Petroleum LLC expansion plans. Marathon Ashland Petroleum, LLC refines, transports, and markets approximately 965,000 barrels of petroleum products per day. The Detroit refinery refines 74,000 barrels of oil per day. Products produced include gasoline, diesel fuel, jet fuel, propane, and asphalt. The expansion project will increase plant output and comply with the new environmental regulations. Without these improvements, the facility will face closure. The Marathon Ashland refinery is the only operating refinery in Michigan. The proposed expansion will increase the refinery output to 100,000 barrels of oil per day. However, conditions on the adjacent roadways are currently insufficient to accommodate the existing and proposed traffic generated by the expansion. Marathon Ashland will invest nearly $303 million in the facility and retain 302 employees.
The proposed project is the first phase of work necessary to accommodate this facility. Work in this phase will consist of the reconstruction of crossovers in front of the Marathon Ashland facility, adjust drainage structures, spot repairs, pavement milling, and resurfacing of Fort Street/M-85 between Schaefer and Oakwood in the City of Detroit. The proposed cost of transportation improvements is $1,026,900 including $821,520 in state TEDF funds and $205,380 (20%) in MDOT Metro Region funds.
Team MDOT and You: Working together to move Michigan forward
|