Business expansion, community development projects win state approval

Projects total $97.4 million in new investment, 568 new jobs

LANSING, Mich. – The Michigan Economic Development Corporation today announced Michigan Strategic Fund approval of four business expansions and seven community revitalization projects in Southeast and West Michigan that will generate $97.4 million in private investment and create 568 jobs.

“From manufacturing to IT to incubator space for entrepreneurs, these 11 projects will further revitalize our communities and bring new jobs to our residents,” said Michael A. Finney, MEDC President and CEO. “These new investments show Michigan’s highly competitive business climate and talented workforce mean real opportunities for growing companies.”

The Michigan Strategic Fund approved incentives for the following projects:

Michigan Business Development Program:

CDK Global, Inc. (formerly the Dealer Services Division of Automatic Data Processing, Inc. and now an independent, publicly-traded company) (NASDAQ: CDK) is the largest provider of integrated information technology and digital marketing and advertising solutions to the automotive industry, with clients in over 100 countries. CDK Global plans to expand its presence in downtown Detroit and lease additional space to provide advanced digital marketing insights and services for its clients in the automotive industry. The project will generate a total capital investment of nearly $3.6 million and add 100 jobs in data processing, hosting, and related services. 

As a result of this expansion, the Michigan Strategic Fund has awarded CDK a $1 million Michigan Business Development performance-based grant. In April 2013, the company was awarded a $1.5 million MBDP performance-based grant to establish the facility in Detroit and create 150 jobs. As of May 2014, the company surpassed its initial milestone by adding 100 of the 150 jobs required under the incentive, and is on schedule to meet its hiring commitment and successfully collect the entire grant in the near future. Individuals interested in employment opportunities with CDK should visit www.CDKGlobal.com. 

Harman International Industries is a leading manufacturer of audio and infotainment systems for the consumer, professional and automotive markets. Harman’s wholly-owned automotive subsidiary, Harman Becker Automotive Systems, Inc., currently operates out of seven facilities in the cities of Novi and Farmington Hills with no room to expand in its current footprint. The company plans to consolidate six of its operations and build a state-of-the art complex in the City of Novi, investing nearly $45 million and creating 150 new jobs. As a result of this growth, the company has been awarded an $800,000 Michigan Business Development Program performance-based grant. Michigan was chosen over competing sites in other states including Illinois, California and Colorado. The City of Novi plans to support the project in the form of property tax abatement. Individuals interested in career opportunities with HARMAN should visit jobs.harman.com.

Nexthermal Corporation delivers smart heat management solutions in the form of electric heaters, heater based assemblies and engineering services worldwide. Established in Michigan in 1991, Nexthermal is the only specialty heater manufacturer in Michigan. The company plans to expand operations in the City of Battle Creek, investing approximately $1.96 million and creating 50 new jobs. As a result of this expansion, the company has been awarded a $250,000 Michigan Business Development Program performance-based grant. Nexthermal chose Michigan over competing sites in Alabama, Oklahoma, Georgia, China and India. The City of Battle Creek plans to offer support to the project in the form of an Industrial Facility Tax Exemption. For Information on Careers at Nexthermal visit http://www.nexthermal.com/page/careers/productionassociatesopenings.aspx or send resumes to [email protected]. To learn more about Nexthermal’s products and services, visit www.nexthermal.com.

Sunrise Windows Ltd. a leading manufacturer of exquisitely designed, custom-made replacement windows, sliding doors and interior wood trim that provide comfort and energy efficiency, was established in Michigan in 1997. The company plans to add manufacturing, office and showroom space at its facility in Bedford Township (Monroe County), investing $5.1 million and creating 100 jobs. As a result, Sunrise has been awarded a $350,000 Michigan Business Development Program performance-based grant. Michigan was chosen over a competing site in Ohio. Bedford Township, which has a long history of supporting job growth and capital investment in its community by offering property tax abatements, is anticipating approving the Sunrise application at an upcoming meeting of the Board of Trustees. For information on careers with Sunrise Windows, visit www.sunrisewindows.com.

Michigan Community Revitalization Program:

751 Griswold Detroit, LLC plans to redevelop the former First State Bank Building into a historically renovated mixed-use building on property located at 751 Griswold Street in the City of Detroit. The completed project will include restaurant space on the first and mezzanine levels, and traditional office and high-tech incubator space on the second through fourth floors. The project will generate a total capital investment of nearly $4.5 million and create 70 full-time jobs, resulting in a $682,279 Michigan Community Revitalization Program performance-based grant. The City of Detroit is supporting the project with a 12-year Obsolete Property Rehabilitation Tax abatement valued at approximately $883,000.

1400 Wealthy, LLC plans to construct two mixed-use, multi-story buildings on properties located at 1400 and 1415 Wealthy Streets in the City of Grand Rapids. The finished project at 1400 Wealthy will consist of a three-story building with 19 market-rate apartments and retail space on the ground floor. The site at 1415 Wealthy will include a four-story building with 16 residential units and retail space, as well as on-site parking. The project will generate a total capital investment of $5.5 million and create two full-time jobs, resulting in an $800,000 Michigan Community Revitalization Program performance-based grant. In addition, the City of Grand Rapids Brownfield Redevelopment Authority will use local and school tax capture valued at $191,700 for demolition, site preparation and infrastructure improvements at the property.

5734 Woodward LLC plans to historically redevelop a three-story building located at 5734 Woodward Avenue in the City of Detroit. The completed project will include retail space on the first floor and residential units on the second and third floors. The façade of the building will be historically recreated to the original 1911 design and the rear portion of the site will be cleared and repaired for parking for the residents and retail patrons. The project will generate a total capital investment of nearly $1.6 million and create 10 full-time jobs, resulting in a $240,625 Michigan Community Revitalization Program performance-based grant. The City of Detroit is offering support to the project with a Neighborhood Enterprise Zone tax abatement valued at $430,000.

Artspace Projects, Inc. plans to renovate two historic buildings and one non-historic building on property located at 13615 Michigan Avenue in the City of Dearborn. The project will convert the current Dearborn City Hall campus into a mixed-use arts campus that will include 53 affordable live/work residential spaces targeted to artists. The development will also create a variety of commercial spaces including artist studios, corridor galleries and a creative entrepreneurship center that will provide support services to the artists. The project is expected to generate a total capital investment of $15.8 million and create four full-time jobs, resulting in a $1 million Michigan Community Revitalization Program performance-based grant. The City of Dearborn has approved $500,000 in HOME funds, a loan of up to $400,000 through the Downriver Community Conference Brownfield Consortium and a 20-year Payment in Lieu of Taxes valued at $1.3 million. The project is also receiving federal historic tax credits, federal low-income housing tax credits, and grants from the Ford Foundation and Severstal International.

West Fort Street Properties, LLC and American Lightweight Materials Manufacturing Innovation Institute (ALMMII) plan to redevelop a blighted and vacant building on property located at 1400 Rosa Parks Boulevard in the Corktown area of the City of Detroit into the new ALMMII research facility. The project is expected to generate a total capital investment of nearly $4.4 million and create 30 jobs. As a result, the project has been awarded a $1 million Michigan Community Revitalization Program performance-based grant. The City of Detroit plans to provide $180,000 in Community Development Block Grant funds to the project. The project is also leveraging more than $140 million through federal funds, state funds and non-government sources.

Community Development Block Grant:

The City of Sturgis has been awarded $442,000 in Community Development Block Grant funds to be used toward job training for the Sturgis Molded Products expansion project in Sturgis. Sturgis Molded Products, a custom plastic injection molding company founded in 1966, is investing more than $3.3 million in the project, which will expand the company’s production capabilities and create up to 50 new full-time jobs. The company has agreed that at least 26 of the jobs will be held by low to moderate income persons. The City of Sturgis will provide support to the project through property tax abatement valued at $343,000. For information on careers with Sturgis Molded Products, visit http://www.smpco.com/jobs.aspx.

Brownfield Work Plan:

The City of Detroit Brownfield Redevelopment Authority will use local and state tax capture valued at $346,180 to historically redevelop the four-story building located at 711 W. Alexandrine in the City of Detroit. The building will be converted into 36 modern, market-rate residential units and will include retail space in the garden level. The project will generate a total capital investment of nearly $6.8 million and create two jobs. The City of Detroit is also supporting this project with an Obsolete Property Rehabilitation Act abatement valued at approximately $1.1 million.

About Michigan Economic Development Corporation (MEDC)

The Michigan Economic Development Corporation is the state’s marketing arm and lead advocate for business development, job awareness and community development with the focus on growing Michigan’s economy. For more information on the MEDC and our initiatives, visit www.MichiganBusiness.org. For Pure Michigan® tourism information, your trip begins at www.michigan.org. Join the conversation on: Facebook Instagram LinkedIn, and Twitter.