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Michigan Strategic Funding Provides Incentives Sparking $133.6 Million In Investment Throughout the Great Lakes State

Area Development Online News Desk (03/25/2014)
Michigan Strategic Fund officials approved economic development and community revitalization projects that will generate $133.6 million in capital investment and create 406 new jobs in the Great Lakes State.

Michigan is America’s Comeback State and these projects add to our growing momentum,” said Governor Rick Snyder. “These new investments in our state will strengthen our communities, spur new commercial investment in our cities and fuel new opportunities for our talented workforce.”

In a major project, the Michigan Economic Development Corporation said a state business development incentive grant will be provided to BorgWarner Inc., which plans to invest $11 million to expand its Powertrain Technical Center in Auburn Hills, Michigan.

The firm focuses on technologies to improve fuel economy, emissions, and performance. BorgWarner plans to create up to 200 new jobs related to motor vehicle transmission and powertrain parts manufacturing.

As a result, the company has been awarded a $3.2 million Michigan Business Development Program performance-based grant. Michigan was chosen over competing sites in several other states. In addition, the City of Auburn Hills offered support to the project in the form of property tax abatement.

In addition to that project, The M1 Rail project is a three-mile modern streetcar project to be constructed along Woodward Avenue from Larned Street in the Central Business District to Grand Boulevard in the New Center area in the City of Detroit. The project is expected to generate a total capital investment of $130 to $140 million and create up to 41 new permanent jobs.

As a result, the project has been awarded a $10 million Michigan Business Development Program performance-based loan.

State Community Revitalization Program grants also included funding for the Grand Rapids Arena Place Development, a proposed mixed-use office, retail and residential high-rise, which will be located in the Arena South District of downtown Grand Rapids. The project is expected to generate a total capital investment of $44 million and create 65 new full-time jobs. The project was approved for a $4.5 million Michigan Community Revitalization Program performance-based loan.

In downtown Ferndale, Michigan, the 965 Wanda Project is designed to provide new industrial space for Brass Aluminum Forging. According to state records, City of Ferndale Brownfield Redevelopment Authority is seeking approval of local and school tax capture in the amount of $717,829 for the redevelopment of a vacant industrial building in downtown Ferndale into new industrial space for Brass Aluminum Forging.

The project is expected to generate a total capital investment of $8.6 million and create 50 full-time jobs at Brass Aluminum Forging. State officials estimate approximately 50 additional jobs will be created by the other tenants of the building.

In another project, as part of a Bond Authorizing Resolution, the Michigan Strategic Fund adopted a Bond Authorizing Resolution in the amount not to exceed $100 million for the construction of the Facility for Rare Isotope Beams to be built on the campus of Michigan State University.

In February, the MSF approved the inducement resolution for issuance of private activity bonds for the community share of the project. The total civil construction cost is estimated to be $165 million. MSU estimates that in the next 10 years, approximately 400 new full-time jobs will be created. When construction of the facility begins, an estimated 5,000 one-year construction jobs will be created.

“Today’s projects will help strengthen and revitalize these Michigan communities and help growing companies generate new job opportunities,” said MEDC President/CEO Michael A. Finney. “We should all applaud these investments in Michigan’s future.”

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