MSF board approves incentives for major investments, new jobs

Four business expansions in metro Detroit generate $532 million in investment, create 2,751 jobs

A wide-range of projects including business expansions and community revitalization projects in metro Detroit and mid-Michigan as well as support for entrepreneurship received Michigan Strategic Fund approval today, the Michigan Economic Development Corporation announced.

The projects are expected to generate a total capital investment of nearly $560 million and create 2,821 jobs.

“Today’s projects, including major investment announcements in southeast Michigan and community revitalization projects around the state, demonstrate that our state’s economy continues to expand and diversify,” said Steve Arwood, chief executive officer at the Michigan Economic Development Corporation, the state’s business attraction arm that administers programs and conducts due diligence on incentive agreements with private companies. 

“The commitment and innovation of these companies, combined with the high quality of Michigan’s talent, will keep our state moving forward. Today’s MSF actions offer further evidence of our commitment to help companies grow and generate new job opportunities for Michiganders.”

Amazon

Amazon plans to open a new state-of-the-art product fulfillment center in the city of Romulus, investing nearly $140 million and creating 1,600 full-time, full-benefit jobs. Michigan was chosen over competing sites in other Midwestern states and Canada following the award of a $5 million Michigan Business Development Program performance-based grant. The City of Romulus has also offered support to the project in the form of bonds for infrastructure, which will paid for in part by the Detroit Region Aerotropolis Development Corporation. Amazon was previously awarded a $7.5 million MBDP grant in December 2016 for the creation of 1,000 jobs at a new fulfillment center in Livonia. For information on careers with Amazon, visit http://amazondelivers.jobs.

Autoliv ASP Inc.

Autoliv ASP Inc., headquartered in Stockholm, Sweden, and Auburn Hills, develops and manufactures automotive safety systems including airbags, seatbelts, steering wheels and more for all major auto suppliers in the world. Autoliv has more than 80 facilities in 29 countries including four facilities in the cities of Southfield and Farmington Hills. The company is experiencing significant growth and plans to lease a newly constructed state-of-the-art facility in Southfield, consolidating all of its operations that are currently spread out across four different facilities. The project is expected to generate a total capital investment of $22.6 million and create 384 jobs, resulting in a $2.6 million Michigan Business Development Program performance-based grant. Michigan was chosen over competing sites in Ohio and Utah. The City of Southfield has offered property tax abatement in support of the project. Individuals interested in careers with Autoliv should visit www.autoliv.com/careers/pages/default.aspx.

Kroger

National grocery chain Kroger Company is one of the world’s largest food retailers, with stores across the country and 431,000 employees. The company plans to open a new dry goods distribution center in Chesterfield Township, investing nearly $25 million and creating 377 jobs. As a result, the company has been awarded a $2,078,000 Michigan Business Development Program performance-based grant. Michigan was chosen over competing sites in Indiana and Ohio. Chesterfield Township is offering township office space for a job fair in support of the project. Individuals interested in careers with Kroger should visit https://jobs.kroger.com.

Williams International

Williams International, founded in 1955 in Commerce Township, is a world leader in the development, manufacture, and support of small gas turbine engines serving the aviation, industrial, and military markets. The company is experiencing growth in its military and commercial operations and plans to relocate its headquarters to the former Motown Motion Picture Studio in the city of Pontiac and also acquire two adjacent parcels of vacant land to establish a production facility for a new product line currently under development. The project is expected to generate a total capital investment of $344.5 million and create 400 jobs, resulting in a $4 million Michigan Business Development Program performance-based grant. Michigan was chosen over competing sites in Alabama, North Carolina, and Utah. The City of Pontiac is offering property tax abatement in support of the project. MSF also approved a 15-year Renaissance Zone for the project. For information on careers with Williams International, visit https://re11.ultipro.com/WIL1006/JobBoard/ListJobs.aspx?__vt=ExtCan.

ZFS Ithaca LLC

The Gratiot County Brownfield Redevelopment Authority received MSF approval of $12.2 million in local and school tax capture for brownfield activities at the ZFS Ithaca LLC development project. ZFS Ithaca is an affiliate of Zeeland Farm Services Inc., a family-owned-and-operated business with 65 years of service to the agriculture and transportation industries. ZFS Ithaca plans to construct a new soybean processing plant and grain shipping facility at a 435-acre site in the city of Ithaca. The project, which is generating an investment of up to $129 million and creating 74 jobs, was awarded an Agricultural Processing Renaissance Zone by MSF in November. The project is expected to boost the percentage of Michigan-grown soybeans processed in-state from 10 percent to as much as 60 percent. To learn more about the ZFS Ithaca project, visit here www.michiganbusiness.org/news/growing-michigans-agribusiness.

213 Development LLC

213 Development LLC plans to renovate the historic Crapo building in downtown Bay City into a mixed-use project with commercial space and residential units. The project will transform a currently blighted and vacant building into an iconic downtown asset by making a number of renovations, including removing its paneled façade and restoring its historic features. The project will enhance walkability in the downtown area, bring additional economic activity to the surrounding businesses, and serve as a catalyst for further development. The project is expected to generate a total capital investment of $11.7 million and create 44 full-time equivalent jobs, resulting in a $1 million Michigan Community Revitalization Program performance-based grant and a $1.4 million performance-based loan. 

In addition, the City of Bay City Brownfield Redevelopment Authority received MSF approval of $1,561,866 in local and school tax capture for the alleviation of brownfield conditions at the site, demolition activities, site preparation and infrastructure improvements.

Wolf River Development LLC

The City of Ferndale Brownfield Redevelopment Authority received MSF approval of $2,423,410 in local and school tax capture for the Wolf River Development LLC project. Wolf River Development plans to redevelop seven parcels of blighted land in downtown Ferndale and construct a new four-story mixed-use development that will consist of commercial space and market-rate apartments. The project will also feature a rooftop patio, green space for a dog exercise area, and integrated parking. The development will bring much-needed housing to downtown Ferndale, improve walkability and bring additional foot traffic to the area. The project is expected to generate a total capital investment of $16.1 million and create 16 full-time jobs. The tax capture will be used to alleviate brownfield conditions at the site and prepare it for redevelopment.

City of Trenton

MSF also approved a Michigan Strategic Fund loan of up to $3.2 million to be used for the City of Trenton’s costs, fees, and expenses associated with the acquisition of and environmental due diligence activities for the former McLouth Steel site. The steel mill ceased operation in 1996 and has been an eyesore in the community for 24 years. There has been developer interest in the property, but the unknown environmental clean-up costs have deterred developers from moving forward. The city will acquire the site from the Wayne County treasurer and conduct environmental investigations that will allow the property to be actively marketed for redevelopment.

Invent@NMU and Innovate Marquette SmartZone

Northern Michigan University received a $1.15 million grant from MSF to implement a collaborative operating agreement between Invent@NMU and Innovate Marquette SmartZone. Invent@NMU gives students real-world experience helping clients bring physical products from concept to market. Innovate Marquette has cultivated an entrepreneurial ecosystem that supports the accelerated creation and growth of high-tech businesses in the area through a broad array of services, training and networking programs. NMU will serve as the fiscal agent for the grant and will continue to select student employees and provide Innovate Marquette with office space and equipment in the Invent@NMU facility. Innovate Marquette SmartZone will assume responsibility for the management and operations of Invent@NMU.

Business Incubator Programs

MSF also approved two Business Incubator Program awards totaling $321,425 to provide business incubator services to early stage technology companies and institutions for the commercialization of competitive edge technologies. The organizations are:

• Oakland University Incubator ($199,625 over two years): The funding will be used for the salary of a gatekeeper, who will be responsible for client recruitment and connecting companies with various entrepreneurial services.
• Economic Development Alliance of St. Clair County ($121,800 over two years): The funding will be used for the salary of a new incubator manager, who will also serve as gatekeeper.

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