Governor Gretchen Whitmer joined the Michigan Economic Development Corporation (MEDC) in announcing Michigan Strategic Fund (MSF) approval of projects, including a business expansion by a global aluminum producer in Cassopolis, redevelopment of the former GM Warren Transmission Plant, a community revitalization project in Bay City, and other actions that will continue to strengthen Michigan’s economy.
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The projects approved April 26 represent a total capital investment of $330 million and could result in nearly 700 jobs.
Hydro Aluminum Metals USA, LLC recycles aluminum into new aluminum extrusion ingots for variety of uses. The company’s parent, Norsk Hydro ASA, is one of the largest aluminum companies in the world with 140 locations in 40 countries.
Hydro plans to construct a new facility in the village of Cassopolis where it will bring a new product line to support the electric vehicle market as well as other applications. The facility will be the first manufacturing operation to be located in the Southwest Michigan Advanced Research and Technology (SMART) Park in Cassopolis.
Part of the project will include a new rail spur that will also allow other businesses in the SMART Park to ship and receive their own materials.
The project is expected to generate a total capital investment of $150 million and create up to 67 new well-paying jobs, supported by $1.5 million in Community Development Block Grant funds. Per federal requirement, at least 51 percent of the jobs must be held by low-or moderate-income individuals. The Michigan Strategic Fund also approved a 15-year State Essential Services Assessment exemption valued at $1.7 million in support of the project.
Michigan was chosen over competing sites in Indiana, Kentucky and Texas.
The project will bring 67 above-average-wage manufacturing jobs to a geographically disadvantaged area of the state. The Village of Cassopolis also approved a property tax abatement in support of the project.
The Warren Transmission Redevelopment Project will redevelop 117 acres that previously housed the former General Motors Warren Transmission Plant in the city of Warren. The project will include the construction of three new buildings containing 1.4 million square feet of space that will support tenants in the light industrial, manufacturing, subassembly work and distribution industries.
The project is expected to generate a total capital investment of $180 million and when fully occupied, could result in the creation of 600 full-time equivalent jobs.
The City of Warren Brownfield Redevelopment Authority received MSF approval of state tax capture valued at $7,271,381 to be used to reimburse for brownfield-related activities at the site. The city is supporting the project through the local tax abatement valued at $10.8 million and a 12-year Industrial Facilities Property tax abatement valued at $12.6 million.
The activation of 1.4 million square feet of industrial space is critical in addressing the shortage of space in metro Detroit and the state. Market analysis has repeatedly shown that move-in ready sites in the 200,000- to 500,000- square-foot range are in demand.
Supporting this type of property remains vital to retaining existing companies in the state as they grow and offers opportunities to attract new companies here to Michigan.
The 1108 Water Street project will redevelop two adjacent historic buildings in downtown Bay City. When completed, the development will include first floor space that will be occupied by North Peak Brewing Company and Kilkenny Irish Pub, with three loft-style apartments on the second floor.
The project is expected to generate a total capital investment of $4.8 million and result in the creation of 30 full-time equivalent jobs. Once complete, it will contribute to the vibrancy, density and walkability of historic downtown Bay City.
The project will utilize Federal Historic Tax Credits to restore two buildings that are listed in the National Register of Historic Places and will revitalize underutilized property into much-needed housing as well as reactivate a vacant former restaurant.
The Michigan Strategic Fund approved a Michigan Community Revitalization Program performance-based grant of $1.5 million. Bay City is supporting the project through a 12-year Obsolete Property Rehabilitation Act property tax abatement valued at $871,787. Bay City is engaged with MEDC’s Redevelopment Ready Communities program.
The MSF also approved $3 million in grant funding to support Industry 4.0 awareness and preparedness and increase technology adoption with six nonprofit organizations being approved by MSF to administer the grant funding across the state.
The grant program will provide assistance to small manufacturers looking to adopt Industry 4.0 technologies and in turn, make transformational change to business, process and culture.
City Club Apartment Redevelopment Project – The City of Detroit Brownfield Redevelopment Authority requested approval of a Brownfield Act 381 Work Plan including $6,936,818 in school tax capture to reimburse the development team for eligible activity expenses associated with City Club Apartments in Detroit.
Because the project work plan fails to demonstrate financial need and is inconsistent with program guidelines and requirements, the MSF board voted to deny the request based on MEDC staff recommendations. ■