The Michigan Economic Development Corp. (MEDC) in Lansing announced Michigan Strategic Fund (MSF) approval of a wide range of projects on Tuesday that, in total, will create or retain 1,846 jobs and generate more than $1.2 billion in investment in Michigan, officials state.
“The projects approved today build on our statewide leadership in advanced and EV manufacturing, bring good jobs to Michigan residents, support vibrant communities, help increase growth opportunities for businesses ranging from start-ups to established companies, and better prepare our state to compete for business attraction opportunities,” says Quentin Messer Jr., CEO of the MEDC and president and chair of the MSF.
Projects include an investment by Swedish paper producer Billerud in Escanaba; investments in Independence Township, Traverse City, Sterling Heights, and Auburn Hills that will help build on Michigan’s leadership in electric vehicle manufacturing; community redevelopment projects in Monroe and Detroit; a new outdoor recreation innovation hub in Marquette; and actions that grow opportunities for Michigan’s small manufacturers and entrepreneurs.
The Detroit community redevelopment project is The Beauton, a three-story building in the North End neighborhood in Detroit. When completed, the project will include 29 units of multifamily housing and office space as well as public infrastructure improvements including new sidewalks along Beaubien and Horton Streets. Fifteen of the rental units will be restricted to rents between 50 and 80 percent of area median income.
“This development will further enhance the North End neighborhood, providing quality housing options and economic vitality for the community,” says Kenyetta Hairston-Bridges, executive vice president for economic development and investment services at the Detroit Economic Growth Corp. “We’re excited to have played a role in the project we anticipate will bring more opportunities and foot traffic to the area.”
The project is expected to generate a total capital investment of $7.1 million, supported by a $1.497 million Michigan Community Revitalization Program performance-based grant. The project is expected to bring new density to the neighborhood, new foot traffic, and increased economic activity for area businesses.
The city of Detroit has approved a 15-year Neighborhood Enterprise Zone tax abatement valued at $743,956. Detroit is engaged with MEDC’s Redevelopment Ready Communities program.
The Monroe redevelopment project will happen at 1284 and 1248 N. Telegraph Rd. The project will redevelop a nine-parcel brownfield site that was the former home of the La-Z-Boy headquarters. The total site is more than 17 acres and is owned by the city of Monroe, which is acting as developer of the project.
“Just as La-Z-Boy has turned the page to their next chapter in the company’s future with their new headquarters in Monroe, we are excited to witness how this site’s transformational redevelopment is setting a new bar for the future of the Telegraph Road corridor in our region,” says Robert E. Clark, mayor of Monroe. “The success of this endeavor shows what benefit can come when the private sector and government work together for the betterment of the community.”
The city began proactively assembling this property for a mixed-use redevelopment in 2019 and has established a Telegraph Road Corridor Improvement Authority TIF district, adopting a development plan to implement a pedestrian-friendly setting and modernized design principles.
Monroe is actively engaged with two developers ready to implement the redevelopment plan that includes a national grocer as an anchor for the commercial space, with an expected total private investment of $60 million and the creation of 45 full-time equivalent jobs. The project will also create 100 jobs during the construction phase.
The City of Monroe Brownfield Redevelopment Authority today received MSF approval of $2.7 million in state tax capture for reimbursement of brownfield activities at the site. The city of Monroe has already completed eligible activities totaling $1.3 million and has committed to completing future eligible activity costs totaling $5.4 million.
The city of Monroe also is supporting the project with local tax capture valued at $3.8 million. The city is also engaged with MEDC’s RRC program.
Billerud U.S. Production Holding, a subsidiary of Billerud, a leading paper and packaging provider headquartered in Sweden, is analyzing whether to bring advanced technology and advanced manufacturing capability to its Escanaba operations, a project that is expected to generate a total capital investment of approximately $1 billion and retain at least 1,240 well-paying jobs in the region.
The company has about 5,800 employees worldwide, with more than 1,200 employees in Michigan. Earlier this year, Billerud acquired Ohio-based Verso Corp., a leading producer of coated paper in North America as part of its global strategy. The acquisition included Verso’s production operations in Escanaba and Quinnesec, south of Iron Mountain on the Upper Peninsula’s shared border with Wisconin; and Wisconsin Rapids, Wisc.
Billerud plans to transform its Escanaba operations to produce a more technologically advanced paper product known as paperboard or cartonboard. This multi-ply product is used as packaging for pharma and health care, cosmetics, drinks, and others, and will allow the company to compete in a growth market for this product.
The Michigan Strategic Fund today approved a 15-year Forest Products Processing Renaissance Zone estimated to be worth $29.4 million in support of the project. In addition, Delta County, Escanaba Township, and Wells Township anticipate authorization of a 15-year Renaissance Zone, and the townships anticipate approval of a 50 percent property tax abatement in support of the project.
“Our pre-feasibility study is underway and expected to be completed in early 2023,” says Kevin Kuznicki, deputy president and general counsel at Billerud North America. “We look forward to continuing to partner closely with our employees, unions, and local and state authorities over the next several months to finalize project and incentive details.”
As the company partners with its stakeholders on the company’s analysis, Michigan is the leading contender for this project. In addition, the effort will include investments to improve the infrastructure around the mill.
Another project comes from Lear Corp., founded in Detroit in 1917 and headquartered in Southfield. The auto supplier is planning to manufacture highly technical battery disconnect units and other vehicle electrification sub-systems for advanced batteries that will be supplied to automakers.
These components control power transfer from the vehicle’s battery to its electrical systems, allowing EVs to charge faster and drive farther while delivering the higher performance requirements needed to power SUVs and light-duty trucks.
Lear plans to utilize a facility in Independence Township to manufacture these components. In addition, the company plans to expand its current plant in Traverse City to manufacture components related to the EV battery pack and upgrade its Sterling Heights facility to increase production of the engineered plastics needed for the new components.
In total, the project is expected to generate a total capital investment of $112.5 million and create up to 500 jobs, supported by a $4.5 million Michigan Business Development Program performance-based grant. Michigan was chosen for the project over other competing sites.
The Michigan Strategic Fund also approved a 15-year, 100 percent State Essential Services Assessment exemption valued at $1.9 million in support of the project.“The plant is slated to start production in early 2024 and will provide battery disconnect units and other vehicle electrification technologies,” says Ray Scott, president and CEO of Lear. “As a Michigan-headquartered company, it’s important to make this investment in our backyard as we continue to grow our portfolio of products for electric vehicles.”
The project will bring immediate job growth and contributes to the MEDC’s ongoing efforts to strengthen Michigan’s leadership in mobility and vehicle electrification. Lear supports personal growth of its employees by providing significant training and offering career development. The company also employs the Together We Win program, which is designed to improve employee engagement, communication, and productivity through various initiatives.
Both Traverse City and the Charter Township of Independence have pledged staff time and resources in support of the project.
UL, a subsidiary of Underwriters Laboratories Inc., plans to purchase industrial zoned property in the city of Auburn Hills to build a testing facility, where it will focus on the company’s long-term strategy to support battery manufacturers by increasing the safety and reliability of its energy storage products.
“This new state-of-the-art facility will build on Auburn Hills’ reputation as a leader in the future of mobility and electrification,” says Kevin R. McDaniel, mayor of Auburn Hills. “At nearly 130 years in business, we are thrilled to welcome this talented team to Auburn Hills and look forward to working with them on their continued success well into the future.”
The project is expected to generate a total capital investment of $72.7 million and create 61 high-wage jobs, supported by a $1 million Michigan Business Development Program performance-based grant and a $500,000 Jobs Ready Michigan Program performance-based grant. The company chose Michigan for the project over competing sites in Indiana and Ohio because of the state’s deep auto manufacturing history.
The city of Auburn Hills anticipates approval of a property tax abatement in support of the project. The MSF also authorized an alternative State Essential Services Assessment exemption and the MEDC approved a State Education Tax abatement to be used in conjunction with the locally approved abatement.
“Companies up and down the supply chain are developing cutting-edge EV battery and mobility technology in the Detroit Region at a remarkable speed,” says Maureen Donohue Krauss, president and CEO of the Detroit Regional Partnership. “As EV technology gets increasingly complex so will regulations and safety standards. UL Solutions is going to help companies bring innovative battery and EV products to market safely and is a great addition to our world-class automotive and mobility testing grounds.”
The Michigan Strategic Fund also approved a $3 million performance-based grant for Hoponassu OZ, to develop Shop House Park Technology and Innovation Hub, an outdoor recreation and product innovation space situated between Northern Michigan University and the Lake Superior shore in Marquette.
The project will include live-work-innovate space that will foster collaboration to grow the outdoor recreation and mobility industries.
“David Ollila is a legend in the outdoor recreation industry, and I couldn’t be more excited to see him creating a place where Michigan can leverage the authentic Upper Peninsula outdoor experience while nurturing outdoor entrepreneurs and fostering collaboration with state’s full suite of design, innovation, and production expertise,” says Brad Garmon, executive director of the Michigan Outdoor Recreation Industry Office. “This is a critical investment in a program and a place that Michigan needs in order to grab the attention of the national outdoor recreation industry and grow opportunities for the entire state.”
The project is intended to solidify Michigan’s leadership position in mobility by connecting the state’s mobility sector to the outdoor recreation industry, drawing companies and teams from across the globe to create, develop, test, and refine new technologies and vehicles that support activities like overlanding, off-roading, and van life, along with conventional outdoor recreation activities like hiking, biking, and paddling.
The development team will be led by owner and developer David Ollila. Project advisors include the Outdoor Recreation Industry Office, InvestUP, Michigan Technological University, the city of Marquette, MICHauto, 100k Ideas, and private consultant Michael Browne.
“By aligning its natural resources and assets with this economic moment, Michigan has a chance to lead the nation and establish the U.P. and Michigan as the center of excellence in outdoor recreation and mobility innovation,” says Ollila, owner and developer at Hoponassu OZ. “This is an opportunity to drive stronger connections between our peninsulas and provide the U.P. an asset that contributes to our collective economy. In a way we have not done since Ford was operating plants in the U.P.”
The MSF also approved an additional $1.5 million in grant funding to support Industry 4.0 awareness and preparedness and increase technology adoption with six nonprofit organizations being approved by MSF to administer the grant funding across the state.
The grant program provides assistance to small manufacturers looking to adopt Industry 4.0 technologies and in turn, make transformational change to business, process and culture.
Since the launch of the I4.0 Implementation grants in May 2022, the regional partners have awarded 82 grants totaling over $1.9 million of the $2.55-million in available grant dollars. The allocated funds were awarded to small manufacturers in all ten regions of the state, across 38 counties.
St. Clair County gains MSF support for infrastructure improvements
The Michigan Strategic Fund also approved a $3.6 million MSF performance-based grant for the Economic Development Alliance of St. Clair County and the city of St. Clair to support infrastructure improvements related to Magna Electric Vehicle Structure’s water needs at its St. Clair facility.
Originally announced in February 2021, the company is constructing a 345,000-square-foot facility where it would produce complex structural battery enclosures for electric propulsion vehicles. The project was expected to generate a total private investment of $70.1 million and create more than 300 jobs over the next five years in St. Clair. The project was amended in October 2022 when the company announced plans to expand the facility, creating an additional 920 jobs with an additional investment of $426.6 million.
