MDOT awards grants to projects that will support more than 478 jobs and investment in Detroit and Grayling

LANSING, Mich. - The Michigan Department of Transportation (MDOT) announced today two state Transportation Economic Development Fund (TEDF) grants that will support a total of 478 new jobs and $3.1 billion of private investment in the city of Detroit and Grayling Township.

"Today's investments to fix the damn roads will support 478 good-paying jobs and more than $3 billion of investment in Detroit and Grayling," said Gov. Gretchen Whitmer. "In 2025, we're focused on growing our economy, creating jobs for Michiganders, and making sure Michigan leads the future of key industries from health care and manufacturing to defense. These projects will upgrade roads around Henry Ford Health and improved access to Saab, Inc. and the Grayling community so we can keep moving our state forward. Let's keep working together to power our economic development strategy and make Michigan an even better place to live, work, and invest."

TEDF grants help finance public highway, road and street projects that are critical to the movement of people and products, and getting workers to their jobs, materials to growers and manufacturers, and finished goods to consumers.

Grant Recipient: City of Detroit

In partnership with the Detroit Pistons and Michigan State University (MSU), Henry Ford Health (HFH) is investing upward of $3 billion in a transformative, visionary project dubbed the Future of Health: Detroit. The Future of Health development includes multiple sites across the area roughly enclosed by West Grand Boulevard on the north, Holden Street on the south, Lincoln Street on the west, and Third Avenue on the east. The various sites that are being developed are on both the east and west sides of M-10 (John C. Lodge Freeway). The development includes a new 1.2 million-square-foot hospital facility and patient tower, including an expanded emergency department, support services, utility infrastructure and a new cutting-edge 335,000-square-foot research center for the HFH and MSU Health Sciences partnership. The project also includes the creation of more than 600 housing units, 33,000 square feet of retail and community space located in new residential/mixed-use buildings, and new public recreation and green spaces. The medical component of the project will create 408 jobs and an investment of $3.2 million. 

"Henry Ford Health deeply appreciates the opportunity to work with MDOT and the State of Michigan for this grant," said Jerry Darby, vice president, Planning, Development and Design at HFH. "This infrastructure will be critical as we look to connect our existing hospital with the new hospital facilities across West Grand Boulevard. In addition, creating infrastructure to link our Detroit hospital campus with our new research facility with MSU, and the new housing and retail development in conjunction with the Detroit Pistons, will be crucial. This improved access will serve both our patients and team members, allowing more efficient movement between our sites, and will greatly benefit our community by creating access to new green spaces."

On West Grand Boulevard, the current road configuration is unsuitable for the expected traffic volume and conditions the development will spur. Road work on West Grand Boulevard will modify the median to add a third travel lane in each direction, create a full-service intersection at Trumbull/Lincoln Street, and improve crosswalks. The road work is intended to prevent stopped and queued turning traffic from stalling traffic flow, to improve patient access to the existing and new medical sites, and to ensure emergency vehicles can bypass traffic during congested periods. Without this important work, the development's operations would be severely impacted with limited access and create congestion and safety concerns in the surrounding areas.

Two of the new medical sites (the hospital expansion and the research center) are separated by M-10. The Holden Street pedestrian bridge is the only nonmotorized crossing of the freeway within a quarter mile of the development area, creating more than a half-mile detour for employees and patients to traverse between the two buildings. Due to the interconnected nature of these facilities, greater transportation access is needed to allow employees to efficiently operate at both sites. The current condition of this bridge presents safety and longevity concerns. To solve these transportation issues, the Holden Street pedestrian bridge will be rebuilt, including adjacent sidewalks connecting to the bridge.

Improvements to West Grand Boulevard and the Holden Street pedestrian bridge will increase accessibility and walkability within the New Center neighborhood, and improve connectivity between HFH's campus, New Center, and other nearby neighborhoods. The Future of Health will transform the New Center neighborhood into a vibrant, walkable community. 

"The City of Detroit appreciates the TEDF investment and partnership from MDOT and the State of Michigan in support of the city's application to improve the transportation infrastructure surrounding the HFH campus," said Sam Krassenstein, chief of infrastructure at the City of Detroit. "The improvements to West Grand Boulevard and the Holden Street pedestrian bridge will undoubtedly improve access to the hospital, MSU research facility, and anticipated development in addition to serving the neighborhoods, residents and communities surrounding these areas."

The overall cost of this project is $10.2 million with TEDF Category A grant program providing a grant of $8.1 million toward eligible construction costs. The City of Detroit is contributing $521,325 toward non-construction project-related costs while MDOT is providing $1.5 million toward non-construction project-related costs. 

Grant Recipient: Crawford County Road Commission

Saab, Inc. serves customers in more than 100 countries around the globe, with world-leading products, services and solutions from military defense to civil security. The company has operations on every continent, with 22,000 total employees in more than 300 countries. The company’s United States business, Saab, Inc., is headquartered in Syracuse, New York, and has nine U.S. locations, employing roughly 900 individuals. The company is making its first investment in Michigan with a planned integration and assembly facility in Grayling to support the engineering and production of cutting-edge products, which meet the needs of the U.S. military. 

A new 140,000 square-foot facility has been proposed, located on Industrial Drive in Grayling. Road improvements are needed on Industrial Drive to accommodate the proposed development because there is no road access to the development site. The project will create approximately 70 jobs and $75 million in private investment. Added financial support for this road project also was made available by the Michigan Strategic Fund (MSF) and Stoops Freightliner- Western Star, which is currently building a new facility along Industrial Drive. 

"Strong roads and infrastructure surrounding our facility are integral to Saab establishing a world-class facility in Grayling and will ensure our materials and products are transported safely and efficiently," said Brad Barnard, vice president and general manager of Land Systems, Saab, Inc. "Saab is excited to get to work and establish ourselves in Grayling as a great neighbor and a strong partner for the broader northern Michigan community."

The Crawford County Road Commission (CCRC) will connect Industrial Street at the Grayling city limit south to 4 Mile Road in Grayling Charter Township. The project is 4.1 miles long and will consist of building a new road from the city limit south to the existing portion of Industrial Drive, which will be rebuilt.

"This road improvement will allow Saab, Inc. the ability to move forward with their manufacturing facility," said Donald Babcock, CCRC managing director. "This results in the creation of 69 new full-time jobs. The Saab, Inc. project is a substantial investment in themselves and the city of Grayling and Crawford County. The grant to upgrade Industrial Drive to an all-season route is essential to the project's success. Therefore, it benefits employees, businesses and citizens in the area. This project is a prime example of this community's efforts to promote growth through industry. This project would not be feasible without the funding provided by MDOT’s Economic Development, Category A funding."

The new roadway will also provide access to adjacent property being developed by Stoops Freightliner-Western Star, which has committed $200,000 in matching funds to Crawford County to support the project. 

"Trucking is an essential component of our economy," said David Shane, vice president of operations with Stoops Freightliner-Western Star. "At Stoops Freightliner-Western Star, we are excited about the Industrial Drive completion and our proposed new building located in Grayling. Our new dealership location will bring 40 new jobs in the future. Also, this economic development will facilitate more commercial and heavy truck traffic, which is vital to this region. Our customers, who are essential to our local and nationwide economies, will be able to safely access our dealership to purchase trucks and truck parts, and have their trucks serviced."

With increasing commercial traffic and heavy truck traffic, the community will benefit from the completion of the roadway by providing safer routes and access points, and providing commercial traffic with quick and easy access to I-75 without going through downtown Grayling.

The overall cost of this project is $8 million. CCRC is contributing $3 million for the project, including $2.8 million through the Michigan Economic Development Corp.'s (MEDC) Build Ready Sites program awarded by the MSF and the funding from Stoops Freightliner-Western Star. CCRC's contribution accounts for 37 percent of the overall project cost.

"Today's grant reflects Team Michigan's commitment to our 'Make It in Michigan' economic development strategy focused on people, places and projects as we welcome an investment by Saab, Inc. that will bring economic opportunity to the Grayling community and add to our storied reputation as the Arsenal of Democracy," said Quentin L. Messer Jr., MEDC CEO and MSF president and chair. "I am grateful to Gov. Whitmer, the Michigan Legislature, and the MSF Board and for the collaboration with MDOT and local officials to advance this roadwork that is critical to securing Saab, Inc.'s investment in Michigan, while also delivering safer routes and access points that will benefit the broader community."

About Transportation Economic Development Fund Grants

Enacted in 1987 and reauthorized in 1993, TEDF "Category A" or "Targeted Industries Program" grants provide state funding for public roadway improvements that allow road agencies to respond quickly to the transportation needs of expanding companies and eliminate inadequate roadways as an obstacle to private investment and job creation. Eligible road agencies include the Michigan Department of Transportation, county road commissions, cities, and villages. More information about the program is available online at www.Michigan.gov/TEDF.