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Area Development - Site Selection, Facility Planning and Workforce Development

Michigan Strategic Fund Provides Incentives To Spark Manufacturing Expansion

10/02/2014
The Michigan Economic Development Corporation announced Michigan Strategic Fund approval of business expansions and revitalization projects in Southeast and West Michigan that will generate millions in private investment and create hundreds of jobs in the Great Lakes State.

“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/CEO. “These new investments show Michigan’s highly competitive business climate and talented workforce mean real opportunities for growing companies.”

Michigan Strategic Fund approved incentives for the following projects:

CDK Global, Inc., the largest provider of integrated information technology and digital marketing and advertising solutions to the automotive industry, plans to expand its presence in downtown Detroit. The firm will 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.

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.

Nexthermal Corporation delivers smart heat management solutions in the form of electric heaters, heater based assemblies and engineering services worldwide. The company plans to expand operations in 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. In addition, Battle Creek plans to offer support to the project in the form of an Industrial Facility Tax Exemption.

Sunrise Windows Ltd., a leading manufacturer of custom-made replacement windows, sliding doors and interior wood trim that provide comfort and energy efficiency, plans to add manufacturing, office and showroom space at its facility in Bedford Township, 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.

West Fort Street Properties, LLC and American Lightweight Materials Manufacturing Innovation Institute plan to redevelop a blighted and vacant building on property located at 1400 Rosa Parks Boulevard in the Corktown area 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.

The City of Sturgis has been awarded $442,000 in The 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, 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. In addition, the City of Sturgis will provide support to the project through property tax abatement valued at $343,000.

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