MSHDA - Granholm Announces Brownfield Redevelopments in Ann Arbor, Grand Rapids to Create and Retain 748 Jobs

FOR IMMEDIATE RELEASE
April 17 , 2007

Granholm Announces Brownfield Redevelopments in Ann Arbor, Grand Rapids to Create and Retain 748 Jobs

Blighted, contaminated sites transformed into housing, retail

Governor Jennifer M. Granholm today announced that the Michigan Economic Development Corporation, in cooperation with the Michigan State Housing Development Authority, is supporting brownfield redevelopment projects in Ann Arbor and Grand Rapids. The three projects are expected to create and retain a total of 748 jobs and involve more than $108 million in new capital investment.

“Transforming blighted and contaminated properties into areas of economic growth is critical to establishing vibrant cities with thriving business centers across Michigan,” Granholm said. “The jobs and investments that healthy cities like Grand Rapids and Ann Arbor attract are critical to growing Michigan’s economy.”

The three projects announced today:

State and local tax capture valued at $564,600 and a brownfield Single Business Tax credit valued at up to $720,000 will support the redevelopment of contaminated property located at 200 South Ashley Street in downtown Ann Arbor. Developer Tierra Equities LLC will demolish the existing building on the site and construct a 26,000-square-foot complex that will include retail and office space and five condominium units. The new development will involve over $9.6 million in new capital investment and create eight new jobs and retain 30. The Ann Arbor Downtown Development Authority has also offered a $281,950 grant to support infrastructure development related to the project.
Developer XY LLC will utilize a brownfield Single Business Tax credit valued at more than $8.4 million and state and local tax capture valued at $3.6 million to redevelop the former YMCA building in downtown Ann Arbor. The developer will demolish the existing structure and build a new complex that will house 117,000 square feet of commercial and retail space, 100 housing units, and a 205-room hotel with restaurant and banquet facilities. The base of the building will also house a new Ann Arbor Transit Authority bus center. The project is expected to create 700 new jobs and involve $95.8 million in private investment. The city of Ann Arbor and its downtown development authority are contributing more than $34 million to the project in the form of tax credits, grants and other funding.
A $282,923 brownfield Single Business Tax credit and state and local tax capture valued at $197,448 will support the redevelopment of the former Loose Leaf Bindery building located at 333-351 Commerce Avenue SW in Grand Rapids. Developer Infinity Companies LLC will renovate and expand the existing structure to include 39 loft apartments and 2,705 square feet of commercial space to include a coffee shop. The project will involve more than $3.3 million in new capital investment and create more than 10 new jobs.

“All of these are mixed-use projects that will create opportunities and tax revenue in the place of community eyesores, ” MEDC President and CEO James C. Epolito said. “Brownfield redevelopment tax credits are essential to addressing the costs of redeveloping these challenged properties.”

In her 2007 State of the State address, Granholm emphasized the importance of making Michigan a global economic powerhouse in the 21 st century. Since January 2005, the governor and the MEDC have announced the creation or retention of more than 186,000 jobs as a result of targeted assistance provided by the MEDC.

“Over the past years, MSHDA and MEDC have developed a very effective working relationship, and we are proud to collaborate with MEDC on brownfield redevelopment projects like these.” MSHDA Executive Director Michael DeVos said. “This partnership goes a long way in not only helping revitalize traditional downtowns, but also in making our downtowns a more desirable place to live, work and invest.”

The Michigan Economic Development Corporation, a partnership between the state and local communities, promotes smart economic growth by developing strategies and providing services to create and retain good jobs and a high quality of life. For more information on the MEDC’s initiatives and programs, visit the Web site at www.michigan.org.

MSHDA is a quasi-state agency that provides financial and technical assistance through public and private partnerships to create and preserve safe and decent affordable housing, engage in community economic development activities, and address homeless issues. MSHDA's loans and operating expenses are financed through the sale of tax-exempt and taxable bonds and notes to private investors, not from state tax revenues. For more information on MSHDA programs and initiatives, visit the Web site at www.michigan.gov/mshda.

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