Gov. Whitmer announces transportation economic development grant that will support 2,200 new jobs in DetroitContact: Brian Armstrong, MDOT Office of Economic Development, 517-335-2636 Agency: Transportation
January 18, 2021 -- The Michigan Department of Transportation (MDOT) has awarded a state transportation economic development grant that will support 2,200 new jobs in the city of Detroit. The grant will help fund infrastructure improvements related to General Motors' (GM) Factory ZERO plant that straddles the Detroit-Hamtramck border.
"General Motors appreciates the support from MDOT and the City of Detroit for these much-needed road improvements," said Jim Quick, plant director at Factory ZERO, Detroit-Hamtramck Assembly Center. "Factory ZERO is an important piece of our journey to an all-electric future and these road improvements will greatly help our employees and the community as we prepare to build electric trucks and the Cruise Origin."
"This is good news for our families, our businesses, and our economy as a whole. Every Michigander deserves to drive on our roads safely, without blowing a tire or cracking a windshield, and this partnership with GM will help us reach that goal while creating good jobs for Michigan workers," said Gov. Gretchen Whitmer. "I am pleased that we were able to work with this long-standing company and the City of Detroit on the road improvements necessary to support GM's Factory ZERO, and I will continue working with everyone who wants to create Michigan jobs and improve our state's infrastructure. Let's get to work."
"This strategic investment from the state will help the city upgrade the road infrastructure around GM's Detroit-Hamtramck assembly plant, which will create 2,200 new jobs at a plant that was once expected to close. Instead, it will produce the vehicles of the future and provide tremendous opportunity for hundreds more Detroiters to join our city's growing middle class. I'm deeply appreciative to the state and GM for their commitment to this project and their investment in our city," said Detroit Mayor Mike Duggan.
GM designs, builds, and sells cars, trucks, crossovers, and automobile parts worldwide. Its core brands include Chevrolet, Buick, GMC and Cadillac. GM recently announced that 40 percent of its U.S. entries will be battery electric vehicles by the end of 2025. Factory ZERO is a key part of GM's transition to electric vehicles and will be the launchpad for GM's multi-brand electric vehicle strategy. The company's largest investment in any plant in its history, GM is investing $2.2 billion in Factory ZERO, reconfiguring it to an all-electric vehicle assembly plant.
GM chose its Detroit-Hamtramck Assembly Center as the location for the center of its electric vehicle strategy, but the surrounding infrastructure was a concern. The roads around the plant are all in poor condition and have reached the end of their service life. GM was concerned that the poor condition of the roads could provide a problem with their just-in-time manufacturing processes. The company was also concerned with the possibility of receiving damaged parts and potential damage to delivery trucks.
Work funded in part with this grant will involve rebuilding and repaving with concrete Mt. Elliott Street from Conant Street to Harper Avenue, Conant Street from Mt. Elliott Street north to the city limit just south of Miller Street, Hamtramck Drive from E. Grand Boulevard north to the Detroit city limit, and E. Grand Boulevard from Trombly Street to Hamtramck Drive.
The total project cost is $11,686,313. The TEDF Category A share of the project is $6,000,000, with the City of Detroit providing $5,686,313 in matching funds. Total participating building costs are $9,109,051. The City of Detroit will provide $2,577,262 for non-building project-related costs. In addition, the City of Detroit will provide $1,262,060 for non-participating work costs for rebuilding sidewalks.
Enacted in 1987 and reauthorized in 1993, the TEDF helps finance highway, road and street projects that are critical to the movement of people and products, and getting workers to their jobs, materials to growers and manufacturers, and finished goods to consumers.
TEDF "Category A" or "Targeted Industries Program" grants provide state funding for public roadway improvements that allow road agencies to respond quickly to the transportation needs of expanding companies and eliminate inadequate roadways as an obstacle to private investment and job creation. Eligible road agencies include MDOT, county road commissions, cities and villages. More information about the program is available online at www.Michigan.gov/TEDF.