The Michigan Strategic Fund today approved developments that are expected to generate a total capital investment of $116.2 million and create more than 700 jobs across the state.
“From the Upper Peninsula to the southern corners of the state, the high-impact projects approved today demonstrate that Michigan’s momentum continues and offer even greater potential for business growth,” says Jeff Mason, CEO of the Michigan Economic Development Corp, who made the announcement. “These investments are the result of vital long-term relationships with public and private partners, and we’re pleased to be a part of the collaboration to bring today’s projects to fruition.”
Among the recipients of the awards were:
MyLocker LLC, an online market of custom apparel and home goods, has three facilities in Detroit. It was awarded a $2.5-million Michigan Business Development Program performance-based grant. The company plans to tear down its building at 1641 Porter St. and construct a three-story production facility that will also house inventory, a robotic inventory system, shipping and receiving, and corporate offices. The project is expected to generate a total private investment of $18 million and create 452 jobs.
MSF also approved a construction loan of $4.2 million through its SSBCI Loan Participation Program in support of the project. Invest Detroit is working with MyLocker Properties LLC to provide new financing to both the holding and operating companies.
The city of Detroit was awarded a $10 million performance-based loan from the MSF investment fund to demolish the vacant Joe Louis Arena. Potential commercial redevelopment uses for the site, which is located south of Cobo Center, are expected to lead to an increased tax base, new jobs, and housing. Initial due diligence shows the potential for $150 million of private investment on the site within the next five years. The loan will replace the Michigan Community Revitalization Program performance-based economic assistance previously awarded to the city in 2014, which cannot be used because the redevelopment project has not yet materialized.
The City of Detroit Brownfield Redevelopment Authority also received approval of more than $13 million in local and school tax capture to be used to alleviate brownfield conditions at the site and prepare it for redevelopment.
In Lansing, 600 E Michigan-Lansing LLC plans to redevelop 4.2 acres of blighted, contaminated property across from the Cooley Law School Stadium in downtown Lansing into the Capital City Market project. It will include the demolition of the existing structures and the new construction of a four-story, mixed-use building that will include an urban grocery market, 36 market-rate residential units, and a Marriott hotel. The urban market will be leased to Meijer and include fresh and frozen food, a coffee shop, and grab-and-go items. The hotel will have 120 units, a lobby bar, and a restaurant.
The project is expected to generate a total capital investment of $41.5 million and create 25 full-time equivalent jobs. MSF approved a $1.5 million Michigan Community Revitalization Program performance-based grant that will be used to support the urban market, the residential units, and the footings and foundation for the hotel.
The City of Lansing Brownfield Redevelopment Authority received MSF approval of nearly $6 million in local and school tax capture to be used to alleviate brownfield conditions at the site. The project is expected to be completed in fall 2021.
The City of Grand Rapids Brownfield Redevelopment Authority received MSF approval of more than $2 million in local and school tax capture for the 10 Ionia NW redevelopment project in downtown Grand Rapids. The tax capture will be used to alleviate brownfield conditions at the site. The project includes the construction of a new 13-story mixed-use building on a small surface parking lot that, when completed, will include a 146-room Marriott Residence Inn with office and retail space on ground floor. The project is expected to generate a total capital investment of $37 million and create 51 full-time equivalent jobs.
Cooper-Standard Automotive Inc., a subsidiary of Cooper-Standard Holding Inc., a global supplier of systems and components for the automotive industry, plans to relocate its Novi headquarters to Northville Township, a project expected to generate a total private investment of $15.2 million and create 130 jobs. The company has been awarded a $1.3 million Michigan Business Development Program performance-based grant. Michigan was chosen over competing sites around the world.
Waupaca Foundry Inc. in Wisconsin, a manufacturer of cast and machined iron components for the transportation and industrial markets, plans to acquire an existing facility in Ironwood, a city in the Upper Peninsula on the Wisconsin border. The company needs to expand in order to process castings, including cleaning and finishing, as a means to meet increasing demand. The company has been awarded a $1.2-million Michigan Business Development Program performance-based grant, and the total private investment generated is expected to be $4.3 million. It will create 61 jobs.
“Today’s actions by the Michigan Strategic Fund will mean more jobs and greater opportunities for Michiganders to find success,” says Michigan Gov. Rick Snyder. “Waupaca Foundry’s plan to establish a facility in Ironwood underscores the attractiveness of Michigan’s business climate and the strength of our talented workforce.”
MSF also approved an inducement resolution for the issuance of $10 million in private activity bonds for Quality Roasting LLC to acquire land, construct a manufacturing facility, and acquire and install machinery and equipment in the village of Reese in the thumb’s Tuscola County. The company processes soybeans into soybean meal and oil and expects to create eight jobs as part of the project.
The 2019 Business Incubator Programs Request for Proposals in the amount of $668,792 to solicit proposals from certified SmartZones or organizations associated with a SmartZone that require funding to support their tech business development activities was also approved. Other support for Michigan’s entrepreneurial ecosystem included funding extensions totaling $1.8 million for six statewide programs that support early-stage startups and the commercialization of new technologies.
MEDC is the state’s chief marketing and business attraction arm that administers programs and performs due diligence on behalf of the MSF.