March 14, 2006
MEDC Incentives Attract More than $51.2 Million in Private Investment
Governor Jennifer M. Granholm today announced two company expansions and four brownfield redevelopment projects are expected to create 1,006 new jobs and generate more than $51.2 million in private investment in communities throughout Michigan. The expansions and redevelopments are a result of assistance provided by the Michigan Economic Development Corporation (MEDC).
“The company expansions coupled with the downtown redevelopments will create good-paying jobs and fertile ground for further investment,” Granholm said. “These projects are strong indicators that manufacturers and developers are banking on Michigan’s economic success in the 21st century.”
The six projects announced today:
- The city of Detroit will use state and local tax capture valued at $352,846 to help redevelop a blighted, long-vacant historic structure next to the Bonstelle Theatre on the campus of Wayne State University. The developer, PPM Acquisitions LLC, will invest about $2.4 million to redevelop the turn-of-the-century former print shop into a 32,000-square-foot retail complex. The project is expected to create 23 new jobs.
- The city of Grand Rapids will partner with Fulton and Division LLC to redevelop a vacant site located near the Heartside neighborhood on the city’s south side. The developer will use state and local tax capture valued at $534,025 and invest about $14 million to help construct a new 10-story building that will house a hotel, condominium units, retail and office space. The project is expected to create 100 new jobs.
- The city of East Lansing will work with Holiday Townhouse LLC to redevelop the former Greyhound bus station in East Lansing. The developer will invest about $5.2 million and use more than $1.8 million in state and local tax capture to transform the property into a mixed-use development with 21 condominiums, 15 townhouses and nearly 9,000-square-feet of retail space. The new development, to be known as the West Village, is expected to create 40 new jobs.
- Marisa Industries Inc. will expand its manufacturing operations in Auburn Hills creating 372 new jobs, including 223 directly by the company. A Single Business Tax credit valued at more than $2.2 million over nine years convinced the company to invest $14.4 million in Michigan over a competing site in Kentucky. The city of Auburn Hills has proposed a six-year tax abatement valued at $36,000 for the first year to support the project. Marisa and its subsidiary BAE Industries Inc. supply and design metal stampings and mechanisms including seat, door and trunk latches for the auto industry.
- The city of Owosso will team with Robbins Loft LLC to redevelop the former Robbins Furniture store and warehouse using state and local tax capture valued at $312,573. The former furniture showroom building located on Main Street will be renovated to include retail and office space on the first two floors and deluxe loft apartments on the third floor. The former warehouse on Robbins Street will house apartments and a prospective health and fitness club. The $1.8 million project will create 29 new jobs.
- Surefil LLC will establish a new headquarters and manufacturing facility in Kentwood instead of a competing out-of-state location. The project will create 442 new jobs, including 278 directly by the company. A Single Business Tax credit valued at more than $3.7 million over 10 years helped win the company’s $6.2 million investment. The city of Kentwood has proposed a tax abatement valued at approximately $338,000 over 12 years to support the project. Surefil LLC is a newly-formed, privately-held contract manufacturer of personal care and medical products such as lotion, hand soap and shampoo.
“We are fortunate to have innovative economic development tools in Michigan,” MEDC President and CEO James Epolito said. “I commend the local governments for working with us to create the best possible business case to secure these expansions and redevelopment projects and the new jobs they will bring.”
In her 2006 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 69,000 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.
