Featured photo: Redevelopment Project, Carpenters Training Center Will Lead to New Career Opportunities in Detroit. Rendering courtesy of NorthPoint Development.
At their final meeting of 2020 on Dec. 8, the Michigan Strategic Fund board approved a range of projects and initiatives that will keep Michigan’s economic recovery moving forward in the new year. In all, the developments approved today are expected to generate a total capital investment of $80.7 million and return a number of obsolete properties to productive use, the Michigan Economic Development Corporation announced. The board also took action to approve a new initiative around Industry 4.0 readiness across the state. Industry 4.0 is defined as the convergence of digital and physical technologies, including artificial intelligence, 3D printing, robotics, augmented and virtual reality, the Cloud and cybersecurity.
“Today’s projects will create a more resilient economy and continue to lay a path forward toward economic recovery for Michigan’s residents, businesses and communities,” said MEDC CEO Mark Burton.
NorthPoint Development and Michigan based LoPatin & Co. plan to redevelop the 45-acre site of the former Cadillac Stamping Plant in the city of Detroit. The project will include the demolition of an existing building and the construction of a new multi-tenant industrial manufacturing facility that will be targeted toward automotive suppliers and advanced manufacturing and logistics opportunities. NorthPoint Development, LLC is one of the country’s largest manufacturing and logistics development companies and was ranked by Real Capital Analytics as the #1 industrial developer over the last five years in terms of square feet developed.
The project is expected to generate a total private investment of $47.9 million and, when the facility is fully leased, has the potential to support manufacturing efforts that could employ up to full-time 450 workers. The facility is expected to be operational by January 2022.
On Dec. 8, the City of Detroit Brownfield Redevelopment Authority received MSF approval of $3,330,293 in state tax capture to reimburse for eligible brownfield remediation activities. The property has a history of manufacturing uses dating back to the early 1900s and requires extensive cleanup of the soil, asbestos removal and exorbitant demolition costs. The project will also include the improvement of public sidewalks on the property.
The city of Detroit is supporting the project with the local portion of the Act 381 Work Plan request valued at $4,659,235 and an anticipated 12-year Industrial Facilities Tax Exemption valued at $8,081,377.
By redeveloping the underutilized and contaminated land that can be used to attract business expansion and job opportunities in a geographically disadvantaged area, support for this project will create opportunity in key industries and increased economic prosperity for the region.
MSF also approved $5 million in collateral support to the Michigan Statewide Carpenters and Millwrights (MSCM) Joint Apprenticeship and Training Fund (operated by the Michigan Regional Council of Carpenters) for the construction of a training center on the west side of Detroit, supporting additional workforce training within the state. As part of MRCC’s commitment to the city, 25% of the apprentice applicants at the new training center will be reserved for Detroit residents. The $30 million center is projected to open in 2021 and will begin hosting classes in early 2022.
The Michigan Strategic Fund also approved a community revitalization project in Port Huron that is helping to create vibrant communities that attract talent through innovative placemaking. By contributing to traditional downtown districts and revitalizing public space in geographically disadvantaged areas, these projects are meeting MEDC’s strategic goal of developing attractive places to live, work, visit and play.
The Wrigley Center Development Project will renovate and expand a vacant, functionally obsolete one-story building in downtown Port Huron. The completed development will consist of a four-story building including 36 mixed-income residential units and commercial space that will contain multiple tenants including the city of Port Huron farmers market. The project will also include multi-level parking and public improvements including sidewalks and the space occupied by the farmers market. The project is expected to generate a total capital investment of $14.4 million and create 45 full-time equivalent jobs. MSF approved a $1,500,000 Michigan Community Revitalization Program performance-based grant in support of the project. In addition, The City of Port Huron Brownfield Redevelopment Authority today received MSF approval of $689,143 in state tax capture to be used to reimburse for brownfield remediation activities.
Michigan’s Leadership in Manufacturing Extended Through Statewide Industry 4.0 Initiative
The Michigan Strategic Fund approved a new Industry 4.0 initiative, a statewide effort to ensure 50% of Michigan manufacturers – or 6,200 businesses – are prepared to adopt Industry 4.0 technologies at some level by 2025. The initiative includes efforts to drive awareness on the importance of Industry 4.0 readiness and technical support to help small- to medium-sized manufacturers adopt Industry 4.0 technologies through a partnership with Automation Alley and the Michigan Manufacturing Technology Center (MMTC). An RFP for a grant program of up to $2 million to support regional needs related to Industry 4.0 readiness complementary, but separate, from the Automation Alley and MMTC efforts, was also approved. To learn more about the initiative, visit here: https://www.michiganbusiness.org/press-releases/2020/12/michigans-leadership-in-manufacturing-extended-through-statewide-industry-4.0-initiative/.
The Michigan Strategic Fund also took a number of administrative actions on Dec. 8, including:
*Updated guidelines for MEDC’s flagship Michigan Business Development Program better reflect updated goals of
achieving a more equitable and resilient economy for all.
*An amendment to the contract with global advertising agency McCann Erickson, allocating an additional $5.7 million
for McCann Detroit to continue to provide business marketing and advertising services to MEDC.
The U.S. Department of Housing and Urban Development (HUD) allocates Community Development Block Grant (CDBG) funding to the State of Michigan, through the Michigan Strategic Fund (MSF) with assistance from the 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 their initiatives, visit www.MichiganBusiness.org.
