The Michigan Strategic Fund Tuesday granted funding to Auburn Hills’ Fiat Chrysler Automobiles for its Detroit projects as well as three community revitalization projects expected to generate a total investment of $131 million and create 293 jobs in Michigan.
The fund approved a package of incentives for FCA, whose projects will generate a total private investment of $4.5 billion and create 6,433 new jobs in Michigan.
Incentives for the Detroit projects included a $10 million Michigan Business Development Program performance-based grant; 100 percent Good Jobs for Michigan withholding tax capture for up to 10 years valued at up to $99 million; a 100 percent State Essential Services Assessment exemption for up to 15 years valued at up to $13.5 million for the Jefferson North Assembly Plant; and a 100-percent State Essential Services Assessment Exemption for up to 15 years valued at up to $18 million for the Mack Avenue complex.
The city of Detroit also invested $50.6 million in the Mack Avenue and Jefferson North Assembly Plant projects and anticipates approval of a 50-percent property tax abatement in support of the project. The Detroit Brownfield Redevelopment Authority received Michigan Strategic Fund approval of a $35 million Michigan Strategic Fund performance-based grant and a $20 million Michigan Strategic Fund Investment Fund loan to assist with site preparation costs at the sites in and around Detroit that will allow the company to expand.
The rest of FCA’s incentive package will affect its projects in other parts of Michigan and includes a tax capture for up to five years valued at $6 million for the creation of 1,400 jobs at the Warren Truck plant; a 15-year State Essential Services Assessment exemption valued at $21 million for Warren Truck; a five-year State Essential Services Assessment exemption valued at $692,928 for the Warren Stamping Plant; and a five-year Alternate State Essential Services Assessment exemption valued at $180,900 for the Sterling Stamping Plant.
The city of Warren also will consider a personal property tax abatement in support of the Warren Truck Assembly Plant project.
The fund’s incentive package for the projects is valued at $223.5 million. The total state contribution to the project including environmental, training, and other funds is expected to total about $261 million. Details about FCA’s planned plant investments are available here.
“This is a historic day for Michigan after we secured the largest automotive assembly plant deal in the country in the last decade – with 6,433 new jobs and $4.5 billion in private investment from FCA,” says Michigan Governor Gretchen Whitmer. “FCA’s investment in five existing plants, as well as plans to build an all-new assembly plant here in Michigan, sends an irrefutable signal that Michigan remains the automotive capital of the world. Today’s announcement highlights the strong bet FCA is making on Michigan’s talent, our manufacturing prowess, and our leadership in new automotive technology, including electric and autonomous vehicles.”
The Albert Kahn redevelopment project in Detroit’s New Center will renovate the vacant, historic Albert Kahn office building. When complete, the project will include 190 mixed-income residential units, retail space, and surface parking. It is expected to generate a total capital investment of $69.2 million and create five full-time equivalent jobs. The Detroit Brownfield Redevelopment Authority also received Michigan Strategic Fund approval of $2,967,675 in local and school tax capture for the remediation of brownfield conditions at the site.
The Cambria @ The Ashton redevelopment project plans to construct a new infill building, renovate an existing building at 600 W. Lafayette Blvd., and redevelop a vacant lot located at 659 Howard St. in downtown Detroit’s central business district. The new building will include retail space, a 154-room hotel, and a parking structure. The existing building will include office, retail, restaurant, and hotel amenity space. The two buildings will be connected by a skyway, and the project will include revitalized sidewalks and right-of-way improvements. When completed the project is expected to generate a total capital investment of $47 million and create 265 jobs. The Detroit Brownfield Redevelopment Authority received Michigan Strategic Fund approval of $8,448,739 in local and school tax capture for remediation of brownfield conditions at the site.
The project is a joint venture between the Means Group Inc., Koucar Management, and the Holdwick Development Group LLC.
The Kalamazoo Creamery LDHA LP has been awarded $2,555,047 by the Michigan Strategic Fund to purchase tax-exempt bonds and provide performance-based loan support for its mixed-use project that will construct a new 59,420-square-foot, three-story building on a vacant brownfield site near downtown Kalamazoo. The property is the former home of the Klovergold Creamery, which delivered dairy products to the Kalamazoo community from the 1950s to the 1980s. The finished project is anticipated to include 10,500-square-feet of commercial space, including a YWCA Children’s Center, with the remaining 48,920 square feet dedicated to the creation of 48 new mixed-income apartments.
The project will provide resources to the Edison Neighborhood and will bring density and walkability to a currently vacant property. The City of Kalamazoo Brownfield Redevelopment Authority also received Michigan Strategic Fund approval of local and school tax capture of $280,018 for the remediation of brownfield conditions at the site. The project is expected to result in a total capital investment of nearly $14.7 million and create 23 new jobs.
“Today’s projects, including the redevelopment of the former home of the Klovergold Creamery in Kalamazoo as well as two historic renovation projects in Detroit, will drive further economic growth for these communities and ultimately bring more jobs to Michigan residents,” says Jeff Mason, CEO of the Michigan Economic Development Corp.
The corporation is the state’s chief marketing and business attraction arm that administers programs and performs due diligence on behalf of the Michigan Strategic Fund.