Detroit’s west side will see a new Meijer store and Grand Rapids will be getting a new urban market with support from tax incentives approved the Michigan Economic Growth Authority Tuesday.
MEGA also approved tax incentives for brownfield redevelopment projects in Kalamazoo and Dexter, for a total of four brownfield projects expected to generate $73 million in new investment and up to 403 direct jobs.
“Today’s brownfield redevelopment projects further our efforts to improve our communities by repurposing blighted, contaminated or functionally obsolete properties across the state,” said Michael A. Finney, president and CEO of the Michigan Economic Development Corp. “These incentives will help upgrade aged facilities, improve property values and bring new jobs to our communities.”
The MEGA board today approved brownfield work plans and incentives for the following Michigan projects:
* 2810 Baker Road Brownfield Redevelopment Project — The Washtenaw County Brownfield Redevelopment Authority will use local and school tax capture valued at $240,000 to demolish a light industrial complex in the Village of Dexter. The developer will construct a 53,081 square-foot building for the Dexter Wellness Center on the site. The project is expected to generate $9 million in new investment and create approximately 50 permanent full-time jobs.
* Grand Rapids Urban Market Holdings — The Grand Rapids Brownfield Redevelopment Authority will use school and local tax capture valued at $4,720,882 to demolish six vacant buildings in Grand Rapids and build a new 130,000-square-foot urban market. The market will include an outdoor seasonal farmers’ market, a year-round indoor space for vendors, restaurants and other food services, educational space, food processing and production space and a rooftop greenhouse. The project is expected to generate $31 million in new investment and create up to full-time 270 jobs.
* Redford High School Redevelopment Project – An MBT Brownfield credit valued at up to $3.3 million and local and school tax capture valued at $6,568,525 will support the redevelopment of the former Redford High School, at 21431 W. Grand River Ave., near McNichols Road, in Detroit. The project includes the demolition of the existing million-square-foot school complex and the construction of a new Meijer store with full retail, grocery, garden center and fuel service station. The project is expected to generate $22 million in new investment and create up to 83 permanent full-time jobs.
* The Exchange Project — An MBT brownfield credit valued at $3,183,746 will support the redevelopment of a surface parking lot into an eight-story mixed-use development that will include residential, office, commercial and retail space in Kalamazoo. The project is expected to generate $28.8 million in new investment and create approximately 210 permanent full-time jobs.
For the year to date, the MEGA board has approved 124 brownfield redevelopment projects with projected new investment of more than $785.7 million. It has also approved agreements to assist the expansion of 50 companies that are projected to invest approximately $1.27 billion and create or retain approximately 14,039 direct jobs.
The MEGA may, under statute, provide a refundable tax credit against the Michigan Business Tax to companies expanding or relocating their operations in Michigan. The MEGA board is also empowered under statute to award Brownfield Redevelopment tax credits to support new business expansion projects on property that is contaminated, blighted or functionally obsolete.
Effective Oct. 1, the $100 million Michigan Business Development and Michigan Community Revitalization Programs replaced the state’s previous MEGA, Brownfield and Historic tax credit programs that were features of the Michigan Business Tax that was eliminated under business tax restructuring legislation approved by the state Legislature and signed into law by Gov. Rick Snyder in May.
The MEDC, a public-private partnership serving as the state’s marketing arm and lead agency for business, talent and jobs, focuses on helping grow Michigan’s economy. For more on the MEDC and its initiatives, visit: www.MichiganAdvantage.org.
Source: WWJ Newsradio 95