June 13, 2006
June 13, 2006
Projects Expected to Generate $150 Million in Private Investment
Governor Jennifer M. Granholm today announced a company expansion and six brownfield redevelopment projects which are expected to create or retain 669 jobs and generate more than $150 million in private investment in communities throughout Michigan. The expansions and redevelopments are a result of assistance provided by the Michigan Economic Development Corporation.
“Our aggressive plan to grow Michigan’s economy is beginning to pay dividends. We’re creating hundreds of new jobs and millions of dollars in new investment in communities across the state,” Granholm said. “These company expansions and community redevelopment projects once again show high-tech companies, manufacturers, and developers are looking to Michigan for success in the 21st century.”
The seven projects announced today:
• Xoran Technologies Inc., a company that designs and sells compact, high quality CT scanners for on-site use by medical specialists, plans to invest $3.7 million to expand its operations in Ann Arbor. The project is expected to create 386 new jobs, including 171 directly by the company. A tax credit valued at more than $7.1 million helped convince the company to choose Michigan over competing national and international sites. The city of Ann Arbor has approved a five-year tax abatement worth $31,990 to support the project.
• Lake Street Petoskey Associates LLC will use a brownfield tax credit valued at $4.5 million to transform an entire city block in downtown Petoskey into a mixed-use development that will feature a 102-room hotel and conference center, condominiums, a new facility for Northwestern Bank and an additional 20,638 square feet of retail and commercial space. A 393-space parking deck will be constructed, with approximately half the spaces available for public use. The project is expected to generate $60 million in private investment and create 115 new jobs.
• Warrior Lacrosse is planning to expand its operations in Warren. The manufacturer of lacrosse and hockey equipment will partner with DKM Holdings LLC to redevelop the former landfill located at 32125 Hollingsworth Avenue. DKM Holdings will use state and local tax capture valued at $2.1 million and a brownfield Single Business Tax credit worth $620,000 to prepare the site and build a new 116,000-square-foot manufacturing, warehousing and distribution facility. An additional 87,200 square feet could potentially be added during the second phase of the expansion. The projected is expected to involve more than $14.8 million in private investment, create up to 90 new jobs and retain 65.
• Pere Pointe Limited LLC will invest $30 million in a multifamily complex called Pere Pointe Village on 11 acres along South Washington Avenue in Ludington, building on a finger of land that extends out into Pere Marquette Lake. The project is being developed on a former industrial and commercial site. It is to consist of three five-story structures each comprising about 10,800 square feet and 40 residential units for a total of 120 condominiums, and a two-story 250-space parking deck. The developer will use state and local tax capture valued at $467,170 and a $1 million brownfield SBT credit and additional Michigan Department of Environmental Quality state and local tax capture of $760,000 for removal of contaminated soil and watercourse dredging. The project is expected to create six new jobs.
• Schooner Pointe LLC will use a $1 million brownfield credit and state and local tax capture of to turn eight acres on Laura Street in Ludington vacant since the 1990s into Schooner Pointe, a development of 115 condo units averaging 1,200 square feet each, a pool, clubhouse and docks. Site preparation in the amount of $2.6 million including removal of existing docks and demolition, will be reimbursed through state and local tax capture. The project will create $23 million in private investment.
• Moch International LLC will use local and state tax capture valued at $737,690 and a brownfield Single Business Tax credit worth $1 million to construct a 171-unit apartment building to include approximately 40,000-square-feet of office space and more than 175,000-square-feet of sub-level parking. The project, located at 235 Grandville, 248 Williams and 244 Finney in downtown Grand Rapids is expected to generate $15.5 million in private investment and create two new jobs.
• Bicycle Factory LLC will use state and local tax capture valued at $333,750 and a brownfield Single Business Tax credit worth $370,625 to transform a vacant historic structure located at 514 Butterworth in downtown Grand Rapids into a mixed-use development with commercial/office space and 20 apartments. The developer will invest $3.7 million in the project which is expected to create five new jobs.
“Michigan’s innovative economic development tools, combined with a quality workforce and strong state-local collaboration enabled us to secure these exciting expansion and redevelopment projects,” MEDC President and CEO James C. Epolito said. “This is good news for the affected communities and the state as a whole.”
In her 2006 State of the State address, Granholm emphasized the importance of making Michigan a global economic powerhouse in the 21st century. Since January 2005, the Governor and the MEDC have announced the creation or retention of more than 87,000 jobs as a result of targeted assistance provided by the MEDC.
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.
