On December 18, 2018, the Michigan Strategic Fund board took on a wide range of projects intended to keep Michigan’s economic revitalization momentum moving forward in 2019.
In all, the new redevelopment projects approved are expected to generate a total capital investment of $116.2 million and create 719 jobs, according to the Michigan Economic Development Corporation.
“Today’s actions by the Michigan Strategic Fund will mean more jobs and greater opportunities for Michiganders to find success,” said Governor Rick Snyder. “Waupaca Foundry’s plan to establish a facility in Ironwood underscores the attractiveness of Michigan’s business climate and the strength of our talented workforce. We applaud the company’s decision to locate here and are thrilled to welcome them to Michigan.”
- 600 E Michigan-Lansing, LLC plans to redevelop 4.2 acres of blighted, contaminated property across from the Cooley Law School Stadium on the 600 block of downtown Lansing into the Capital City Market project (pictured at top). The project will include the demolition of the existing structures and the new construction of a four-story, mixed-use building that will include an urban grocery market, 36 market-rate residential units and a hotel. The urban market will be leased to Meijer and will be designed with an open-air atmosphere with fresh and frozen food options, a coffee shop, and healthy grab-and-go items.
- The hotel space will consist of 120 units, a lobby bar and a restaurant. The project is expected to generate a total capital investment of $41.5 million and create 25 full-time equivalent jobs, and will provide much-needed, affordable, healthy food options to the residents, increase daytime and evening foot traffic, and bring increased economic activity to the nearby businesses. MSF today approved a $1.5 million Michigan Community Revitalization Program performance-based grant that will be used to support the urban market, the residential units, and the footings and foundation for the hotel.
- In addition, the City of Lansing Brownfield Redevelopment Authority received MSF approval of $5,908,518 in local and school tax capture to be used to alleviate brownfield conditions at the site and prepare it for redevelopment. The project is expected to be completed in fall 2021.
- “The Capital City Market is a hugely important addition to downtown Lansing,” said Bob Trezise, president and CEO of LEAP. “More people living and visiting downtown fosters daytime and nighttime activity, both of which are needed to support and sustain the heart of the city, and this is the type of amenity an urban population needs and demands. I want to thank the MEDC for recognizing the importance of this request and I want to congratulate Mayor Schor and Pat Gillespie on reaching another important milestone that will push this great project forward.”
- Waupaca Foundry, Inc. is a manufacturer of high-quality cast and machined iron components for the transportation and industrial markets. The company was purchased in 2014 by Hitachi Metals Group and has more than 4,500 employees at seven locations in the United States. The company needs to expand in order to process castings, including cleaning and finishing, as a means to meet increasing demand – all in a location where there is sufficient labor supply.
- Waupaca plans to acquire an existing facility in the city of Ironwood, a project that will generate total private investment of $4.3 million and create 61 jobs. As a result, the company has been awarded a $1.2 million Michigan Business Development Program performance-based grant. Michigan was chosen over competing sites in Arkansas and Wisconsin. The city of Ironwood is considering a 12-year property tax abatement valued at $375,000 in support of the project.
- “When we consider expanding operations, we consider long-term sustainability,” said Waupaca Foundry President COO and CEO Mike Nikolai. “In all U.S. locations we are committed to being a good corporate citizen, providing great jobs, investing in the community, and creating the highest quality castings we’re known for worldwide.”
- Cooper-Standard Automotive Inc. is a subsidiary of Cooper-Standard Holdings Inc., a global supplier of systems and components for the automotive industry. The company manufactures products that include rubber and plastic sealing, fuel and brake lines, fluid transfer hoses and anti-vibration systems.
- Currently headquartered in Novi, Cooper-Standard has more than 33,000 employees worldwide with 1,892 in Michigan. The company has expanded its business in both automotive and adjacent markets and has outgrown its headquarters space. The company plans to relocate its headquarters to Northville Township, a project that is expected to generate total private investment of $15.2 million and create 130 jobs.
- As a result, the company has been awarded a $1.3 million Michigan Business Development Program performance-based grant. Michigan was chosen over competing sites in North America and around the world. Northville Township plans to provide expedited reviews and permitting in support of the project. For information on careers with Cooper-Standard, visit https://www.cooperstandard.com/careers .
- MyLocker, LLC is an online market of custom apparel and home goods that has developed proprietary software that provides automation from start to finish of the product customization process. The company’s first product was a blanket with polar fleece on one side and water-resistant fabric on the other. Eventually personalization options were added for this product, and in 2005 MyLocker began building online stores with an integrated design-production-delivery system. The company offers custom integration for online merchants.
- MyLocker has three facilities in the city of Detroit. The company plans to tear down its building at 1641 Porter St. and construct a three-story production facility that will also house inventory, a robotic inventory system, shipping and receiving, and corporate offices.
- The project is expected to generate a total private investment of $18 million and create 452 jobs, resulting in a $2.5 million Michigan Business Development Program performance-based grant. Michigan was chosen over competing sites in Nevada and Ohio. The Detroit Economic Growth Corporation anticipates approval of a property tax abatement in support of the project.
- In addition, MSF approved a construction loan in the amount of $4.2 million through its SSBCI Loan Participation Program in support of the project. The loan is necessary to make the demolition of the existing building and construction of the new facility possible. Invest Detroit is working with MyLocker Properties, LLC to provide new financing to both the holding and operating (MyLocker.com, L.L.C.) companies.
- “The DEGC is extremely excited to champion MyLocker’s rapid growth in Detroit,” said Kevin Johnson, president and CEO, Detroit Economic Growth Corporation. “MyLocker’s technology is bringing innovation to garment manufacturing, positioning Detroit on the forefront of the industry. We’re thankful to MyLocker for its commitment to employing Detroiters. The DEGC looks forward to helping the company continue sourcing local talent, and escalating MyLocker’s success in our city.”
- The Grand Rapids Brownfield Redevelopment Authority received MSF approval of $2,131,741 in local and school tax capture for the 10 Ionia NW redevelopment project in downtown Grand Rapids.
- The project includes the construction of a new 13-story mixed-use building on a small surface parking lot that when completed, will include a 146-room Marriott Residence Inn and office/retail space on the ground floor. The project will also improve the publicly owned and maintained sidewalk around the property.
- The project is expected to generate a total capital investment of $37 million and create 51 full-time equivalent jobs and will bring much-needed hotel space to the city and increased economic activity in the area. The tax capture will be used to alleviate brownfield conditions at the site, making it suitable for redevelopment.
- The city of Detroit was awarded a $10 million performance-based loan from the MSF investment fund for the demolition of the vacant Joe Louis Arena in preparation for future development. The property is located just south of Cobo Hall and is a prime piece of real estate with several potential commercial redevelopment uses that will lead to increased tax base, new jobs and residential housing.
- Initial due diligence shows the potential for $150 million of private investment on the site within the next five years. The loan will replace the Michigan Community Revitalization Program performance-based economic assistance previously awarded to the city in 2014, which cannot be used because the redevelopment project has not yet materialized.
- In addition, the City of Detroit Brownfield Redevelopment Authority received approval of $13,172,392 in local and school tax capture to be used to alleviate brownfield conditions at the site and prepare it for redevelopment.
“From the Upper Peninsula to the southern corners of the state, the high-impact projects approved today demonstrate that Michigan’s momentum continues and offer even greater potential for business growth,” said Jeff Mason, CEO of MEDC, the state’s chief marketing and business attraction arm that administers programs and performs due diligence on behalf of the MSF.
“These investments are the result of vital long-term relationships with public and private partners, and we’re pleased to be a part of the collaboration to bring today’s projects to fruition,” he concluded.