November 14, 2006
November 14, 2006
Projects generate $186 million in capital investment
LANSING - Governor Jennifer M. Granholm today announced the Michigan Economic Development Corporation (MEDC) is helping a Michigan-born high-tech company expand in St. Joseph. The Michigan State Housing Development Authority (MSHDA) has joined MEDC in backing four brownfield redevelopment projects in Detroit, Buena Vista Township near Saginaw and Grand Rapids. The expansion and redevelopment projects are expected to create and retain a total of 271 jobs and involve more than $186 million in capital investment in the communities.
"From Detroit to Saint Joseph, communities across the state are reaping rewards from our economic plan," Granholm said. "These projects are further proof that Michigan is the best place in North America for businesses to invest, grow and create new jobs."
The 5 projects announced today:
- Edgewater Automation LLC, a supplier of custom automation equipment for assembly and testing for the medical, electronic, automotive, stored power, pharmaceutical and alternative energy industries, plans to invest $1.05 million to expand its operations in St. Joseph. The expansion is expected to create 97 new jobs, including 45 directly by the company. A high-tech Single Business Tax credit valued at $263,000 over five years helped convince the company to grow in Michigan instead of a competing site in Indiana. Cornerstone Alliance, the regional economic development agency for the Benton Harbor-Saint Joseph area, will provide the company with a $6,000 annual grant for three years to support the expansion. In 2001, the MEDC approved a Single Business Tax credit to help Edgewater Automation begin operations. Today, the company has grown to over $9 million in sales with 45 employees.
- @water Lofts LLC - A $9.7 million Brownfield SBT credit and state and local tax capture valued at more than $1 million will help transform a three-acre former industrial site east of the Renaissance Center in Detroit. The new neighborhood will be located on Atwater St between Rivard and Riopelle, just south of Jefferson in Detroit's East Riverfront District and The Tri-Centennial Park and Marina. Belmar Development Group will orchestrate the building of over 20,000 square feet of street-level retail space. Residential space will include a combination of over 212 lofts, town homes, and penthouses with an average of 1200 square feet. The project is expected to create over 100 new jobs and involve more than $119 million in capital investment.
- Spingarn Development LLC - A $5.1 million brownfield SBT credit and state and local tax capture valued at more than $5.5 million will be used to redevelop a 2.24-acre site on the Detroit Riverfront. The Watermark Detroit project will consist of a nine-story residential tower containing 111 condominium units including parking garages, two buildings with six "city" homes and two buildings containing 10 "marina" homes. The project will create four new jobs and involve more than $58 million in capital investment.
- Erwin Properties LLC will use $175,000 in state and local tax capture to support the demolition of a vacant bowling alley to support the construction of a new 3,000-square-foot retail/commercial development on Dixie Highway in Buena Vista Township. The five-acre site will also include housing adjacent to the commercial development. The mixed-use project is expected to create 10 new jobs and involve $1 million in private investment.
- Seventh Street Properties LLC will use state and local tax capture valued at more than $1.5 million to help transform a former furniture manufacturing facility in the city of Grand Rapids into a mixed-use development with 30 apartments and 49,500 square feet of retail space. The project will create 15 new jobs, retain 45 and include $7.9 million in capital investment.
"We are competing against 49 other states and countries around the globe for new investment and jobs," MEDC President and CEO James C. Epolito said. "Our strong business climate and outstanding workforce is enabling us to pull ahead of the competition."
"There is no state that can compete with Michigan when it comes to state agencies working together to improve our economic climate," MSHDA Executive Director Michael R. DeVos said. "We are excited to be a part of these redevelopment projects that bring both jobs and profitable growth to Michigan cities and towns."
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 160,000 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.
MSHDA is a quasi-state agency that provides financial and technical assistance through public and private partnerships to create and preserve safe and decent affordable housing, engage in community economic development activities, and address homeless issues. MSHDA's loans and operating expenses are financed through the sale of tax-exempt and taxable bonds and notes to private investors, not from state tax revenues. For more information on MSHDA programs and initiatives, visit the Web site at www.michigan.gov/mshda.
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