Four business incentives, funding for infrastructure improvements, a community development project, a Request for Proposals to launch Michigan’s Innovation to Manufacturing Statewide Program and more gained approval from the Michigan Strategic Fund, the Michigan Economic Development Corporation announced today.
The projects are expected to generate more than $1.5 billion in total investment, create 907 jobs and retain an additional 245 jobs in Michigan.
“The Michigan Strategic Fund approved a wide range of actions today, including tech projects in Flint and Ann Arbor that will further elevate Michigan’s high-tech industry and major investments by two automakers that demonstrate high-level commitment to Michigan’s economic future,” said Gov. Rick Snyder. “The new entrepreneurial support program was something I called for in my 2016 State of the State address and will provide assistance to Michigan’s early stage companies and increase growth opportunities in Michigan.”
Approved today by the Michigan Strategic Fund:
Duo Security, Inc., with locations in Michigan, California, London, and Texas, is a leader in providing secure, two-factor phone-based login authentication technology. The company plans to expand its existing operations in the city of Ann Arbor, investing more than $2 million and creating up to 300 sales, engineering and product development jobs over the next three years. As a result of this expansion, the project has been awarded a $2.5 million Michigan Business Development Program performance-based grant. Duo Security established its Ann Arbor technology facility in 2009. Citing the flourishing technology environment, attractive business climate, and highly qualified talent pool, the company chose to expand in Ann Arbor over competing sites in California, London, and Texas. Ann Arbor SPARK is providing support to the project in the form of hosting talent events to help recruit new hires. Individuals interested in employment opportunities with Duo Technology should visit here: https://duo.com/about/careers. To view a video on Duo, visit here: https://www.youtube.com/watch?v=r1JrOoQ92B8&feature=youtu.be.
iSource Worldwide, LLC d/b/a PrintSites™ (“iSource”) based in Fenton, Michigan is a highly skilled software development and services company with an expertise in eCommerce applications. The company has developed and brought to market the cloud-based web-to-print solution known as PrintSites. iSource is experiencing rapid growth, is at capacity in its current location in Fenton and plans to relocate its headquarters into the historic Dryden building in downtown Flint, investing, in coordination with SkyPoint Ventures, LLC, $2.65 million and creating up to 100 jobs. As a result, the project has been awarded a $500,000 Michigan Business Development program (“MBDP”) performance-based grant and $2.5 million MBDP performance-based loan. iSource chose Michigan over competing sites in California, Arizona and Illinois, citing a desire to participate in Flint’s revival and to serve as a catalyst for other technology projects moving to Flint. The Flint and Genesee Chamber of Commerce has offered staff time, employee parking assistance and other municipal incentives in support of the project. To learn about career opportunities, visit www.printsites.com and contact email@example.com.
Ford Motor Company will make a $1.4 billion capital investment and add 500 new jobs in its Livonia Transmission Plant, refitting the expansive factory along Plymouth Road in the Detroit suburb to manufacture a new 10-speed rear-wheel drive transmission. The Michigan Strategic Fund today approved an exemption from the personal property tax for the automaker valued at $27.3 million over 15 years. The exclusion, referred to as the State Essential Services Assessment Exemption, serves as an incentive for projects with more than $25 million in eligible manufacturing personal property.
FCA US LLC, formerly known as Chrysler Group, will purchase new equipment and modify its engine plant in Trenton as part of a $74.7 million investment to manufacture the next generation four-cylinder engine for future vehicles. As a result, up to 245 jobs will be retained at the facility located in southeast Wayne County, several blocks from the Detroit River. The Michigan Strategic Fund today approved an exemption from the State Essential Services Assessment for the Auburn Hills-based automaker valued at $770,000. The exclusion serves as an incentive for projects that result in significant investment in eligible manufacturing personal property.
The City of Grand Rapids Brownfield Redevelopment Authority received approval of $8,882,556 in local and school tax capture for the redevelopment of four acres of property located along the 400 blocks of Benson and Grand for the Grand Rapids Properties 1, LLC project in Grand Rapids. The completed project will consist of two multi-story buildings that will include 286 market-rate residential rental units and a multi-story parking deck. The project will generate a total capital investment of $53 million and create an anticipated 10 full-time equivalent jobs. The tax capture will be used for lead and asbestos abatement, demolition activities, site preparation and infrastructure improvements. The developers have also requested $25,000 from the Michigan Department of Environmental Quality in Tax Increment Financing to assist with environmental activities.
MSF also approved up to $8 million in Community Development Block Grant funding for the competitive Infrastructure Capacity Enhancement (ICE) funding round. The purpose of the ICE program is to accelerate economic development and assist low and moderate income communities in making improvements or upgrades to their existing public infrastructure systems. Activities could include: water lines and related facilities; sanitary and storm sewer lines and related facilities; wastewater treatment plants and related activities; and road replacement activities related to these projects. Grants of between $500,000 and $1 million will be awarded to eligible communities on a competitive basis. Additional details will be available later this week at http://www.michiganbusiness.org/public-notices-rfps/.
MSF also approved the Michigan’s Innovation to Manufacturing Statewide Program Request for Proposals in the amount of $400,000. The purpose of the RFP is to award a grant to a nonprofit organization for the implementation of a statewide program that will provide support services to manufacturing entrepreneurs and assist them in bringing their products to market. Gov. Rick Snyder called on MEDC to develop a statewide, early stage entrepreneurial support program during his 2016 State of the State address.
Additional details of the RFP will be available later this week at http://www.michiganbusiness.org/public-notices-rfps/.
In addition, MSF approved the following items:
Funding in the amount of $800,000 for five nonprofit/university organizations to provide business incubator services to early stage technology companies and institutions.
The establishment of a statewide Michigan Translational Research and Commercialization (MTRAC) program.
Bond inducement resolution for private activity bonds that will allow Canterbury Health Care, Inc. to make improvements and additions to its facility in Waterford Township.
$4.99 million in loan collateral in order to support $10 million in financing to be provided by Citizens Bank to Michigan Custom Machine. The financing will allow MCM to complete work related to a contract for the production of large scale machinery manufacturing related to production of vehicles featuring nine and 10 speed transmissions.
“Today’s MSF actions further boost Michigan’s growing economy by generating new opportunities for our families and businesses,” said MEDC Chief Executive Officer Steve Arwood. “These investments will help to revitalize our communities, create jobs for our residents, and strengthen Michigan’s workforce.”