The Michigan Strategic Fund has approved projects expected to generate $243 million in total investment and support the creation of up to 3,077 jobs for the state, according to the Michigan Economic Development Corp.
“Today’s MSF actions demonstrate our commitment to strengthening Michigan’s business environment and revitalizing our communities,” says Jeff Mason, CEO of the corporation.
In Detroit, IDRE3 and Kercheval Associates plan to construct a 79,519-square-foot, four-story building in the West Village neighborhood. The top three levels will include 92 residential units, and the ground floor will offer retail space. The project is expected to generate a total capital investment of $22.5 million and create 22 jobs.
The Michigan Strategic Fund approved a $3.5-million Michigan Community Revitalization Program performance-based award in support of the project. It also received local support, including $1.5 million in HOME funds and the approval of a neighborhood enterprise zone tax abatement.
The Township of Waterford Brownfield Redevelopment Authority received approval of nearly $13 million in local and school tax capture to demolish the vacant Summit Place Mall and construct a new business center called Summit 327. It is expected to include 1 million square feet of commercial space that may include light industrial users, logistics companies, research and development or engineering firms, office users, or other flex-space users.
“Approval of the Brownfield Development for the former Summit Place Mall area is a huge step in the right direction for redevelopment of the long-vacant and dilapidated building,” says Gary Wall, supervisor of the township. “We’re excited about the proposed revitalization of this area and look forward to the economic growth this project will bring to Waterford. Collaborative projects like these help ensure redevelopment success for the betterment of our community, Oakland County, and the state of Michigan.”
A total capital investment of $63 million is expected for the project, which also could support up to 2,183 jobs. The tax capture will be used to alleviate brownfield conditions at the site.
“The demolition and redevelopment of the Summit Place Mall will bring an exciting business center and 1 million square feet of attractive commercial space and multiple opportunities to a site that has been dormant for years,” says Oakland County Executive L. Brooks Patterson. “This project has been a long time coming, and the economic impact for Waterford and the county will be significant.”
The Oakland County Brownfield Redevelopment Authority received approval of almost $3.5 million in local and school tax capture to turn the former Ford Wixom Assembly Plant into Detroit Wixom, a complex of up to seven buildings totaling about 1.6 million square feet of commercial or industrial space. The project is expected to generate a total capital investment of $150 million and create about 850 jobs. The plant ceased operations in 2007.
The Summit 327 and Detroit Wixom projects qualified for brownfield tax increment financing under the Michigan Economic Development Corp.’s Speculative Building Development Program, which offers incentives and financing programs to encourage the development of new speculative building projects. The performance-based program is aimed at increasing the availability of high-quality, single- and multi-tenant building space that will help communities attract corporate offices, technical centers, and research and development, manufacturing, or logistics operations.
“The two projects approved under the Speculative Building Program will boost the state’s availability of high-quality commercial space and breathe new life into blighted properties, helping to attract more businesses to invest in Michigan,” says Mason.
Wolverine Fire Protection Co. in Mt. Morris (north of Flint) plans to add five jobs within the next six months and five after that within two years. Oxford Bank is providing the company with a $4-million line of credit to give it working capital availability. The Michigan Strategic Fund is providing $1.8 million in collateral support that will serve as an enhancement to the loan from Oxford. The fund’s collateral support will result in $5.6 million in private investment. Wolverine was established in 1958 and provides fire protection systems to industrial, commercial, and residential buildings.
Two buildings in downtown Lansing are slated for redevelopment by 515 Ionia for six residential units and four commercial spaces spanning 9,132 square feet. The project is expected to generate a total capital investment of almost $1.5 million and create 12 jobs. The Michigan Strategic Fund approved a $254,362 Michigan Community Revitalization Program performance-based grant in support of the project. The city of Lansing Brownfield Redevelopment Authority also received Michigan Strategic Fund approval of $220,420 in local and school tax capture for brownfield remediation activities. Lansing is a certified Redevelopment Ready Community.
The Michigan Economic Development Corp. is the state’s marketing arm and an advocate for business development, job awareness, and community development. It is focused on growing the state’s economy.
