Three new construction projects expected to generate just over $215 million in private investment and create 265 jobs in the city of Detroit have today received support from the Michigan Strategic Fund.
Automotive seating supplier Adient has announced plans to locate its new operational headquarters in Detroit, while steel producer ArcelorMittal Tailored Banks Americas Corp. will establish a new manufacturing center in the city. In turn, the 15-story, mixed-use Metropolitan Building in the city’s downtown area, which has been vacant for 39 years, will undergo a renovation.
“Having Adient and ArcelorMittal locate in Detroit deepens and broadens Michigan’s rightful claim as the global auto capital,” says Steve Arwood, CEO of Michigan Economic Development Corp. “Furthermore, these companies are strategically positioned in a manufacturing and R&D center here in Michigan that is transforming the auto industry and the future of transportation. In addition, the redevelopment of the Metropolitan Building is another attraction to Detroit’s expanding cultural scene.”
Earlier this year, Adient became a publically traded company when it was spun off from Johnson Controls, Inc. To draw Adient, the MEDC negotiated a $2 million Michigan Business Development Program performance-based grant. In return, Adient committed to a $97.8 private investment and the creation of 115 jobs.
With its move to Detroit, ArcelorMittal Tailored Blanks – a subsidiary of one of steel and mining companies ArcelorMittal – will produce high-strength steel laser welded blanks for the OEM automotive industry. Located in a 317,000-square-foot building north of GM’s Hamtramck Assembly plant, the new manufacturing facility is the first plant in the state for the company.
ArcelorMittal receives a $2-million Michigan Business Development Program performance grant for the project, which will create a minimum of 120 jobs over five years and a capital investment of $83.5 million.
The restoration of the historic, 98,000-square-foot Metropolitan Building, located at 33 John R Street (immediately behind the John Varvatos store), will transform the space into a mixed-use, extended-stay 110-room hotel with retail space.
Built in 1925 as an emporium for jewelry operations, the redevelopment of the hotel by Metropolitan Hotel Partners is a collaboration between Detroit-based Means Group, Inc. and Roxbury Group LLC.
The project receives a $6.5-million Michigan Community Revitalization Program performance-based loan as part of a total capital investment of $34 million and the creation of 30 permanent full-time jobs.
In related news… In support of ZFS Ithaca, LLC’s new soybean processing plant in Ithaca, the Michigan Strategic Fund today approved an agricultural processing renaissance zone, a designation based on resolutions passed by the city of Ithaca, North Star Township, and Gratiot County, that provide a $14.8 million property tax abetment to the project through 2031. Final approval consideration will now go to the Michigan Administrative Board on December 6.
As part of the agreement, ZFS Ithaca will invest up to $123 million and create 74 full-time jobs at the 435-acre processing site.
ZFS Ithaca announced its plan for a second, larger facility in early October. The plants will produce soybean meal, hulls, and oil.