The Michigan Strategic Fund approved projects expected to generate $625.2 million in total investment and create 555 jobs in Michigan, the Michigan Economic Development Corp. announced Tuesday.
“The projects approved by MSF today will have positive economic impacts in communities throughout the state, from Albion to Detroit and Holland to Vicksburg, and will help build on our efforts to make Michigan communities vibrant places to live, work, and play,” says Jeff Mason, CEO of MEDC.
Knauf Insulation North America Inc., a producer of building materials and construction systems, plans to invest in its facility in Albion to convert and restart an idled production line, increasing production capacity by more than 30 percent. The project is expected to generate a total private investment of $32.4 million and create 34 jobs, resulting in a $204,000 Michigan Business Development Program performance-based grant. MSF also approved a 100-percent, 15-year State Essential Services Act exemption valued at $708,325. Michigan was chosen for the project over facilities in Indiana and Alabama.
The expansion is in response to growing demand for energy-efficient new-home construction and for attic insulation that increases the energy efficiency of existing homes.
“Keeping pace with the growing demand in the upper Midwest for quality loose-fill insulation products will be made possible through the expansion of our plant here in Albion,” says Kevin Keen, plant manager. “The support we received from the state of Michigan and city of Albion helped make this expansion possible. We are excited to add 34 new full-time positions to our team roster and to provide the surrounding area with an increase in employment both through the construction phase of the project and after start-up.”
Albion plans to host a job fair in support of the project. Those interested in careers with Knauf can find more information here. Knauf is a subsidiary of German company Knauf Insulation GmbH and was established in Indiana in 1978. The parent company is an insulation manufacturer with products for energy efficiency and acoustic performance in new and existing homes, commercial buildings, and industrial applications. Knauf has production sites in Alabama, California, Indiana, Michigan, and West Virginia.
Paper City Development received MSF approval of a Transformational Brownfield Plan for its proposed multi-site mixed-use redevelopment project in the village of Vicksburg and Schoolcraft Township (both south of Kalamazoo) that will include hotel and residential space, incubator space for microbreweries, a beer garden, demo gardens, public green space, and more. The project includes the redevelopment of the abandoned historic Vicksburg Paper Mill, a former gravel pit, and surrounding undeveloped property.
“The redevelopment of the Vicksburg Paper Mill into a dynamic, exciting multi-use development will bring the village of Vicksburg and the surrounding area to life and represents exactly the type of development the Transformational Brownfield Plan program was intended for – supporting big-impact community revitalization projects around the state,” says Mason. “We look forward to working with our local partners to bring this exciting redevelopment project to fruition.”
The project is expected to generate a total private investment of $80 million and create 221 permanent, full-time equivalent jobs. MSF approval of a Transformational Brownfield Plan authorizes several sources of tax capture in support of the project. The entire package is valued at $30 million.
The Transformational Brownfield Plan program allows large-scale projects to capture or receive an exemption from state sales and income taxes to redevelop brownfield sites. Sites considered for the program are high-profile, high-traffic areas that define an area’s identity and economic prospects.
Support for The Mill at Vicksburg is the second Transformational Brownfield project approved by the MSF. In May 2018, MSF approved a Transformational Brownfield Plan package for a Bedrock project in Detroit.
The City of Detroit Brownfield Redevelopment Authority received MSF approval of a brownfield work plan including local and school tax capture of up to about $92.9 million for the alleviation of brownfield conditions at the site of the FCA US LLC Mack Engine Plant. Of the amount, about $34 million in state and $58.9 million in local tax revenue over the next 30 years was approved for the MSF-related activities at the project site. FCA plans to reopen its long-idled MACK II plant and convert the MACK I plant from producing engines into a full assembly facility for the next-generation Jeep Grand Cherokee.
The eligible property will also be developed into surface parking, storage areas, and locations for new stormwater management infrastructure. Current brownfield conditions will be alleviated through the development of the MACK and supporting properties. Without the tax capture, the cost burden related to alleviation of the brownfield conditions at the site would make the project financially unfeasible.
The project is expected to generate a total capital investment of $1.7 billion ($1.6 billion by FCA and $150 million by the City of Detroit Brownfield Redevelopment Authority) and create about 3,850 permanent full-time equivalent jobs.
At its May 2019 meeting, the MSF approved a package of incentives for FCA for projects that will generate a total of 6,433 new jobs and up to $4.5 billion in investment for the MACK plant, Jefferson North Assembly Plant, Warren Truck Assembly Plant, Warren Stamping Plant, and Sterling Stamping Plant. The city of Detroit is expected to request a brownfield work plan to support the brownfield activities associated with the project.
The City of Detroit Brownfield Redevelopment Authority also received MSF approval of local and school tax capture of almost $10 million for a project that will include the redevelopment of a parking lot into a six-story, mixed-use parking structure to support the SoMa project in Detroit’s Midtown. The project will rehabilitate an existing office building and an adjacent alleyway and includes a parking structure. The project is expected to generate a total capital investment of $21.5 million and create 225 permanent, full-time equivalent jobs. The tax capture will be used to alleviate brownfield conditions.
Local support includes a Commercial Rehabilitation tax exemption valued at about $3 million.
Midtown Project LLC received MSF approval to amend the original Brownfield Michigan Business Tax credit for The Mid at 3750 Woodward project with the addition of 3750 Woodward Avenue LLC as a qualified taxpayer and a change to the scope of the project. It will include the redevelopment of one parcel of property at the address and create a 25-story tower that will house retail, event, and hotel space, as well as condominiums. The project will also include a 27-story building of 180 multi-family units and five levels of integrated parking, a 12-story building including 198 co-living residential units and retail on the first two floors, and two single-story cultural/arts buildings.
The facility will replace the previously approved medical office building and parking deck, which were not built. The City of Detroit Brownfield Redevelopment Authority also received approval of an amendment to increase its local and school tax capture for brownfield alleviation activities to about $58.3 million. Tax increment capture began in 2015 and is expected to continue for 30 years.
The project will generate a total capital investment of nearly $377 million, which is an increase of nearly $304 million over the previously approved work plan.
The city of Holland Brownfield Redevelopment Authority received MSF approval of an amendment to a Brownfield Work Plan for a previously approved local and school tax capture of about $4 million. The original project consisted of the construction of a 91,336-square-foot parking deck and site improvement activities in downtown Holland. The amended project now includes the completed parking deck, construction of a three-story, multi-tenant commercial building, and about 3,300 square feet of publicly maintained, snowmelt-equipped sidewalks. The amended project will generate an additional capital investment of $37.2 million and create 75 full-time equivalent jobs, resulting in a new total tax capture of about $6.9 million.
The Michigan Economic Development Corp. is the state’s marketing arm and advocate for business development, job awareness, and community development. It is focused on growing Michigan’s economy and administers programs and performs due diligence on behalf of the MSF.
