The Michigan Economic Development Corporation announced The Michigan Strategic Funds approval of two business expansion projects and six community revitalization projects that will generate more than $463 million in new capital investment and create 1,804 jobs in Michigan.
“Today’s actions mean good-paying jobs for Michigan families,” said Governor Rick Snyder. “These new investments in our state will strengthen our communities, spur new commercial investment in our cities and fuel new opportunities for our talented workforce.”
Michigan Business Development Program:
Brose New Boston, Inc. (a part of the Brose Group) is a leading manufacturer of electric motors and mechatronic systems for vehicle doors, lift gates and seat structures. Brose North American Headquarters is located in Auburn Hills with two plants in Warren and New Boston – Huron Charter Township. Due to new business, Brose will grow its Huron Charter Township, City of Warren and City of Auburn Hills facilities, investing up to $97.6 million and creating 475 jobs. As a result, the company has been awarded a $4.25 million Michigan Business Development Program performance-based grant. Michigan was chosen for this business over competing sites, including Mexico. Huron Charter Township is offering support to the project in the form of a 12-year property tax abatement valued at $3.5 million. Individuals interested in positions with Brose should visit www.brose.com.
The Paslin Company, based in Warren, designs, assembles, and integrates robotic assembly lines for Tier 1 and OEM automotive companies. The company plans to construct a new facility in Shelby Township and expand its three current facilities in the City of Warren, investing more than $20.6 million and creating 224 new jobs. As a result, the company has been awarded a $1.7 million Michigan Business Development Program performance-based grant. Michigan was chosen over competing sites in Alabama, Tennessee and Washington. The City of Warren and Shelby Township are offering support to the project in the form of property tax abatements. To learn about career opportunities with the Paslin Company, visit www.paslin.com
Community Development Block Grants:
MSF approved $12.5 million in Community Development Block Grant funds for the City of Coldwater for infrastructure improvements, land acquisition, workforce development and on-the-job training for the Clemens Food Group pork processing facility. The 550,000 square-foot Clemens Food Group pork processing facility will be located in Coldwater Township and is expected to generate up to $255.7 million in private investment. It is projected to create 810 jobs, 644 of which will be supported by the CDBG funding. The City of Coldwater and Coldwater Township collaborated on a land transfer agreement that will allow the City of Coldwater to contribute $4.5 million toward the project for infrastructure improvements at the site, including water and sewer main extensions and a new municipal electric overhead distribution line. That support, along with today’s MSF CDBG approval, is part of an overall package of local and state support that will total $55 million. This also includes nearly $16 million in tax savings as a result of the recently approved personal property tax reform. To watch a video about the Clemens Food Group project, visit https://www.youtube.com/watch?v=uzKKw7pcccA.
MSF awarded $1.9 million in Community Development Block Grant funds to the Charter Township of Watervliet (Berrien County) for the Lane Automotive Inc. expansion project. Lane Automotive, a supplier of performance parts and accessories for race cars, hot rods, trucks, and off-road vehicles, has outgrown its current facility and plans to expand operations at its current facility. The CDBG funds will be used toward on-the-job training for 138 new employees at the new site. The company has agreed that at least 70 of the positions will be held by individuals with low to moderate incomes. Michigan was chosen over competing sites in Tennessee and Indiana. Watervliet Charter Township will reduce permitting fees of up to $10,000 for the project.
Outfield Partners, LLC plans to develop, construct and manage the residential development located in the outfield of Cooley Law School Stadium in the City of Lansing. The project will include food and event space on the first floor that will be leased by the Lansing Lugnuts and 84 residential units on the upper three floors. The project is expected to generate a total capital investment of $11.2 million and create three jobs, resulting in a $2,455,000 Michigan Community Revitalization Program performance-based equity investment.
In addition, the City of Lansing Brownfield Redevelopment Authority has submitted an Act 381 Work Plan for local and school tax capture valued at $3,503,973 to be used toward demolition, site preparation and infrastructure improvements for the project.
The City of Battle Creek Brownfield Redevelopment Authority will use local and school tax capture valued at $892,740 to redevelop property located on Angell Street and Grand Trunk Avenue in the City of Battle Creek for the ReConserve of Michigan, Inc. project. ReConserve of Michigan, a recycler of bakery and cereal grain by-products, will install processing equipment, grain bins and a rail spur that will go into a building specially designed to accommodate loading and unloading of rail cars. The tax capture will go toward partial and whole building demolition, lead and asbestos abatement and site preparation. The project is expected to generate a total capital investment of $8 million and create nine full-time jobs.
TC 555 Michigan LLC plans to redevelop the properties on the northern two corners of Michigan Street and Union Avenue in the City of Grand Rapids. The project will include the demolition of an existing vacant building and the construction of a new three-story, mixed-use building with retail space on the first floor and eight market-rate apartments on the second and third floors. The adjacent site will include the construction of a new four-story, mixed-use structure with ground floor retail space and an additional 16 residential units. The project is expected to generate a total capital investment of nearly $7.4 million and create 15 full-time jobs. As a result, the project has been awarded a $1 million Michigan Community Revitalization Program performance-based grant.
In addition, MSF approved local and school tax capture valued at $465,750 for the City of Grand Rapids Brownfield Redevelopment Authority to alleviate brownfield conditions at the site and for demolition of the existing building, site preparation and infrastructure improvements.
The City of East Lansing Brownfield Redevelopment Authority will use local and school tax capture valued at $1,858,668 for the redevelopment of property on Trowbridge Road in the City of East Lansing for the Trowbridge Village, LLC project. The project will redevelop an unattractive, contaminated parcel by rehabilitating the existing building and constructing a new four-story, mixed-use building with retail space and 57 residential units. The project is expected to create 114 new full-time jobs and retain 52 current jobs. The total capital investment is expected to be $17.1 million.
Y Site, LLC plans to construct a new, four-story mixed-use development located on Lenawee and Townsend Streets at the site of the former YMCA in the City of Lansing. The project will include demolition of the vacant and contaminated former YMCA building and a small commercial building and construct a new building consisting of retail space and 156 residential apartments. The project will generate a total capital investment of nearly $23 million and expected to create 25 jobs. As a result, the project has been awarded a $3 million Michigan Community Revitalization Program performance-based equity investment.
In addition, MSF approved an amendment to a previously approved Brownfield Small MBT Credit for the project that will allow the City of Lansing Brownfield Redevelopment Authority to extend its work plan for an additional three years in order to complete the additional activities.
MSF also approved bond authorizing resolutions for the following projects:
The Cascade PACE, Inc. – $4 million of private activity bond financing for the Program of All-Inclusive Care for the Elderly project, Charter Township of Blackman (Jackson County)
Detroit Renewable Energy LLC – Private activity bond financing not to exceed $20,035,000 for the Greater Detroit Resource Recovery Facility, City of Detroit
BMT Aerospace – $2.6 million in private activity bond financing to refinance outstanding bonds issued in 2007 for the BMT Aerospace Facility in the City of Fraser
Senate Office Building – $70 million in tax-exempt bond financing for the purchase of the basement through the seventh floor of the Capitol View Building in Lansing to be used for Michigan Senate offices.