LANSING — The Michigan Economic Development Corp. today announced Michigan Strategic Fund approval of a new $50 million skilled trades equipment program for community colleges along with economic development and community revitalization projects that will generate more than $281.6 million in new capital investment and create nearly 1,500 jobs in Michigan.
“Today’s MSF actions will further drive Michigan’s turnaround by generating new opportunities for our families and businesses,” says Gov. Rick Snyder. “They will help to revitalize our communities, create jobs for our residents, lead to new investment in our cities and strengthen Michigan’s workforce.”
The Michigan Strategic Fund approved the Community College Skilled Trades Equipment Program, an initiative that will make $50 million available to Michigan community colleges for the purchase of equipment that will allow the colleges to deliver educational programs in high-wage, high- and middle-skill, and high-demand occupations.
“The community college funds will assist in the delivery of educational programs, degrees and credentials required for high-wage and high-demand occupations in skilled trades,” Snyder says. “Michigan intends to lead our nation in skilled trades training and providing community colleges with funding assistance is a huge step forward in that direction.”
Community colleges can request up to $4.8 million in funds. The Request for Proposals will be released in November and applications will be due by Jan. 31, 2015. Awards will be announced in February 2015.
Among the Business Development Program incentives:
Autosystems America Inc., a subsidiary of Magna International Inc., a leading manufacturer of automotive systems, assemblies, modules and components, primarily for sale to the car and light truck OEMs. Autosystems America Inc., dba Magna Lighting, has secured a new contract to supply automotive lighting components and systems to a large OEM. This contract will require a new manufacturing facility and consolidate all of the company’s engineering, R&D, sales and marketing, as well as a new headquarters, into one location in Plymouth Charter Township. The company will invest up to $59.2 million and create 466 jobs, resulting in a $3 million Michigan Business Development Program performance-based grant.
Magna Exteriors and Interiors, USA Inc. is a subsidiary of Magna International Inc. The company plans to establish a new facility in Windsor Township (Eaton County) for assembly and sequencing of interior doors, floor consoles, and production of instrument panel components. The project will generate a total capital investment of $57 million and create 281 jobs, resulting in a $2 million Michigan Business Development Program performance-based grant.
Mobis North America, established in 2005 and headquartered in Toledo, manufactures Chrysler, Dodge, and Jeep chassis systems. Mobis is at capacity in its facility in Farmington Hills and plans to purchase a larger facility in Plymouth Charter Township to allow for growth in R&D, engineering and sales operations. The current location not only specializes in vehicle headlamps but in the areas of multimedia (Bluetooth, telematics, system validation), steering, brake, AOS/ICS, ADAS, autonomous vehicle, electric vehicle charging and many more. The project will generate a total investment of nearly $26.6 million and create 121 jobs, resulting in a $1.25 million Michigan Business Development Program performance-based grant.
Shiloh Industries (Shiloh) is a global supplier of lightweighting and noise, vibration and harshness solutions to the automotive and commercial vehicle markets. Shiloh and its wholly-owned subsidiary, Greenfield Die & Manufacturing Corp., plan to establish a new sales and technical center in Plymouth Township, and expand its manufacturing operations in Canton Township, investing up to $48 million and creating 128 jobs. Michigan was chosen over competing sites in Ohio, Tennessee, and Georgia. As a result, the company has been awarded a $2 million Michigan Business Development Program performance-based grant. Canton Township is offering support to the project in the form of property tax abatement.
Thomson Reuters Inc. develops, sells and supports accounting and tax software for the public accounting market. The company has outgrown its current facilities in the Ann Arbor area and plans to expand operations in Pittsfield Charter Township, investing more than $19.8 million and adding 300 new jobs. As a result, the project has been awarded a $2.4 million Michigan Business Development Program performance-based grant. Michigan was chosen over a competing site in Texas. Ann Arbor SPARK provided assistance to the company in securing incentives from MEDC and Pittsfield Charter Township will consider offering support to the project in the form of property tax abatement.
The Michigan Department of Transportation is currently reviewing an application for a Transportation Economic Development Fund grant to make local roadway repairs necessary for the Thomson Reuters project.
Community revitalization projects include:
250 West Larned LLC plans to convert the former Detroit Fire Department headquarters and an adjacent building into a modern, luxury 100-room boutique hotel with a first floor restaurant and retail space on West Larned in the City of Detroit. The project will include a historic renovation of the property, highlighting the interior design and architecture of the building. The project will generate nearly $28.9 million in total capital investment and create 97 full-time jobs, resulting in a $5.84 million Michigan Community Revitalization Program performance-based equity investment.
20 Fulton Street East LLC – The City of Grand Rapids Brownfield Redevelopment Authority will use local and school tax capture in the amount of $6.1 million for the redevelopment of property located at 20 E Fulton St. in Grand Rapids. The finished project will consist of a new 12-story, income-restricted and market-rate residential development with retail space on the ground floor. The project is expected to generate approximately $42 million in total capital investment and create 44 full-time jobs.
Other Michigan Strategic Fund actions:
The Community Development Block Grant Deep Freeze Fund, approved by MSF in July to provide grants to Michigan communities impacted by the extreme cold last winter, was increased from $6 million to $7.6 million in order to assist all eligible communities.
MSF approved an amendment to the program guidelines for the Michigan Supplier Diversification Fund and Michigan Business Growth Fund that will permit the two loan programs under the funds to better respond to businesses affected by natural disasters, such as the recent flooding in the Detroit area.
The Young Man’s Christian Association of Lansing, d/b/a of Metropolitan Lansing, received MSF approval of a grant amendment for the refinancing of a prior private activity bond.
MSF also approved a grant amendment in the amount of $2 million to the Michigan Small Business Development Center to continue funding matching funds for Small Business Innovation Research and Small Business Technology Transfer Research federal funds.
Pure Michigan is a brand representing business, talent and tourism initiatives across Michigan. These efforts are driven by the Michigan Economic Development Corp. which serves as the state’s marketing arm and lead advocate for business growth, jobs and opportunity with a focus on helping grow Michigan’s economy.