MSF approves support for electric vehicle manufacturing expansion, community vitality projects, entrepreneurship programs to continue Michigan’s economic recovery

• Magna to create 300 jobs with new high-tech facility in St. Clair to manufacture battery enclosures for 2022 GMC Hummer EV • Community development projects in Detroit, Holland, and Alma bringing new opportunities for economic growth • Programs extended to grow entrepreneurship ecosystem in communities throughout the state

LANSING, Mich. – The Michigan Strategic Fund board today approved a range of projects and initiatives to strengthen Michigan’s economy and further position the state for future prosperity, the Michigan Economic Development Corporation announced. In all, the developments approved today are expected to generate a total capital investment of $173.6 million, create 473 jobs, build on Michigan’s continued growth in electric vehicle manufacturing, and bring new vibrancy to Michigan downtowns. The board also extended support for entrepreneurial programs supporting start-ups and tech entrepreneurs around the state.

“Today’s actions by the MSF Board continue to lay the path for economic prosperity for Michigan’s residents, businesses, and communities,” said MEDC CEO Mark Burton. “These projects are investments in some of Michigan’s greatest competitive advantages – our skilled and diverse workforce and our continued leadership in manufacturing, our high-tech ecosystem, and the next generation of autonomous and electric vehicles.”

New Magna Battery Enclosure Facility Brings More Than 300 Jobs to St. Clair

 

Magna Electric Vehicle Structures-Michigan, Inc. is a newly created entity of Magna International, Inc, a global automotive supplier whose roots in the auto industry go back to 1957. Today, Magna makes everything from seats to powertrains and is the only auto supplier to build complete vehicles with more than 10,000 employees located here in Michigan.

Magna Electric Vehicle Structures was formed for the purpose of implementing and operating a new facility that will produce complex structural battery enclosures for electric propulsion vehicles. The company has been awarded a new program for the all-new 2022 GMC Hummer EV, set to begin initial production at GM’s Factory Zero facility in Detroit-Hamtramck this fall.

The company plans to construct a 345,000-square-foot facility with the ability to support an expansion of up to 1,000,000 square feet in the city of St. Clair, a project that will generate a total private investment of $70.1 million and create more than 300 jobs over the next five years. As a result of the investment and job creation, Magna has been awarded a $1.5 million Michigan Business Development Program grant that will be awarded over time as jobs are created. Michigan was chosen over competing sites in the Midwest.

The project contributes to the ongoing efforts of the Michigan Economic Development Corporation to strengthen Michigan’s leadership in advanced manufacturing and become the epicenter of autonomous and electric vehicle manufacturing in the U.S. Magna has developed training and mentorship programs that provide for advancement within the organizations and also offers an executive leadership program, which works directly with local school districts and colleges to help build out an employment pipeline. Jobs created through this investment will include managers, engineers, administrative assistants, operators, and more.

“This investment by Magna will create great jobs for our state’s talented workforce as we continue to implement our Michigan Back to Work plan to get Michiganders back on their feet,” said Governor Whitmer. “This announcement reaffirms Michigan is transforming along with the automotive industry to ensure the next generation of mobility and electrification is designed, developed, tested, and built right here in our state.”

The city of St. Clair anticipates approval of a real property tax abatement in support of the project. The company also received approval of a State Education Tax abatement to be used along with the locally-approved abatement. For information on careers with Magna, visit https://www.magna.com/company/careers.

To read the full Magna announcement, visit here.

Community Revitalization Projects Create Vibrant Communities, Attract Talent, Boost Tourism

The Michigan Strategic Fund also approved community revitalization projects in Detroit, Holland and Alma that are helping to create vibrant places that attract and keep talent. By contributing to traditional downtown districts and revitalizing underutilized public spaces, the projects are bringing new opportunities for economic growth and local vitality to these communities.

 

The Godfrey Hotel Redevelopment project will remove an existing vacant former commercial building and construct a seven-story, 227-room boutique hotel in the Corktown neighborhood of Detroit. When completed, the Godfrey Hotel will include a ground-floor lobby, bar and restaurant, ballroom and rooftop café and amenity space. The project will also include infrastructure improvements including sidewalks, brick walkways, curbs, paving and landscaping. The project is expected to generate a total capital investment of $74.1 million and create or retain 160 full-time equivalent jobs, and will redevelop a long-vacant, blighted property into an attractive hotel that will promote tourism as well as bring density and new economic activity to the area.

The City of Detroit Brownfield Redevelopment Authority today received MSF approval of a Brownfield Work Plan including state tax capture of $1,899,117 to remediate brownfield conditions at the site. The city of Detroit is contributing the local portion of the Brownfield Tax Increment Financing, valued at $3,269,954. The city of Detroit is also engaged with MEDC’s Redevelopment Ready Communities (RRC) program.

“The pandemic has created financing challenges, especially for hospitality projects,” said Kenyetta Bridges, DEGC Executive Vice President, Economic Development & Investment Services. “Through the support of incentive tools such as a Brownfield TIF and PA210 tax abatement, DEGC and the Detroit Brownfield Redevelopment Authority was able to help secure this project. As a result, the Godfrey Hotel will create over 150 full-time jobs prioritized for Detroit residents and 227 much-needed hotel rooms in the downtown core.”

 

Towers on River, LLC plans to remove a vacant single-story building located at 159 S. River Ave. and construct a new five-story, mixed-use development in the city of Holland. The building dates back to 1883 and has seen a wide array of uses including commercial uses. When completed, the development will include retail, commercial office space, and residential condominiums. The project is expected to generate a total capital investment of $26.9 million and create five full-time equivalent jobs. In addition, the project will revitalize a vacant, contaminated property in an important location that is strategically situated between
the dynamic downtown district and underutilized waterfront and former industrial sites, bringing new vibrancy and increased economic activity to the entire area.

The City of Holland Brownfield Redevelopment Authority today received MSF approval of a Brownfield Work Plan including state tax capture in the amount of $2,215,901 for the removal of brownfield conditions at the site. The city of Holland is contributing the local portion of the Brownfield Tax Increment Financing, valued at $2,993,649, and local-only TIF estimated at $108,100. The city of Holland is engaged with MEDC’s RRC program.

“The City is very pleased to participate in the support of this key project,” said Holland City Manager Keith Van Beek. “The Towers on River not only redevelops a key corner in our downtown, but we believe will serve to encourage other development. State support of this project helps Holland continue to be an economic success in West Michigan.”

 

The 313 N. State Street redevelopment project will transform a functionally obsolete, historic building into a vibrant-mixed use development in downtown Alma. When completed, the development will include nine market-rate residential units as well as commercial space that will contain a nine-room boutique hotel. The project is expected to generate a total capital investment of approximately $2.5 million, and will transform a historic property into a vibrant, mixed-use project that will bring increased walkability, vibrancy, new housing, and density to downtown Alma. It will also bring new, market-rate overnight accommodation for visitors to Alma College that is otherwise not available in the community and will serve as a catalyst for additional revitalization of the community.

The MSF today approved a $900,000 Michigan Community Revitalization Program performance-based grant in support of the project. In addition, the Gratiot County Brownfield Redevelopment Authority received approval of a Brownfield Work Plan including state tax capture of $200,258 to remediate brownfield conditions at the site. The city of Alma is approving a 12-year Obsolete Property Rehabilitation Act property tax abatement valued at $360,000. The city of Alma is also engaged with MEDC’s Redevelopment Ready program.

“Thanks to Gemini Capital Management, MSF, MEDC, Gratiot County, and the city of Alma for their combined efforts in making this project possible,” said Greater Gratiot Development, Inc. President Jim Wheeler. “The 313 N. State St. project in Alma will not only transform a long-term underutilized building into a state-of-the-art boutique hotel and residential apartment structure, but it will also drive further investment and development in downtown Alma.”

MSF approves additional support to grow entrepreneurial ecosystem within communities throughout the state:

The approved funding will support incubators in Flint and Northern Michigan to ensure the state maximizes attracting, retaining and supporting talent—a driving force of Michigan’s economic growth.

• Northern Michigan University Invent@NMU Business Incubator Grant Amendment – Invent@NMU supports students and tech entrepreneurs across the Upper Peninsula to start up small businesses. MSF today approved a one-year extension of the grant with Invent@NMU and an additional $320,000 in funding to support its work.
• Flint Ferris Wheel Innovation Center Business Incubator Grant Amendment – The Flint Ferris Wheel is a business incubator and co-working space in downtown Flint that provides support for all entrepreneurs and start-up companies with a product, software or service. MSF today approved a one-year extension of the Ferris Wheel grant and an additional $260,000 in funding.

Through the SmartZones, Michigan provides business entrepreneurs and startups with accelerator services including mentoring, networking events, product development, grant writing, business planning, technology mining, market analysis and more.

• Gateway Representative Business Incubator Grant Amendment – The Gateway program supports the 21 SmartZones across Michigan by assigning a dedicated representative at each SmartZone to serve as a point of contact for start-up companies. MSF today approved one-year extensions to the Gateway grants for 18 SmartZone locations and up to an additional $100,000 each in funding.

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.