LANSING (WWJ) — The Michigan Economic Development Corp. Tuesday announced state approval of economic development projects that will create 1,444 new jobs in Michigan and result in $362 million in business spending in the state.
Gov. Rick Snyder said in a statement that the projects “will strengthen Michigan’s role in advanced science, improve our communities, and fuel more and better jobs for our talented workforce.”READ MORE: Here Is An Update On The Chevy Bolt Recall
The state approved the resolution of up to $100 million in “private activity bonds” for the community share of a new nuclear physics research center on the campus of Michigan State University.
The Facility for Rare Isotope Beams involves more than $600 million in direct investment, mainly from the federal government. The FRIB will be housed in a 220,160-square-foot new building next to MSU’s existing National Superconducting Cyclotron Laboratory.
The total civil construction cost is estimated to be $165 million. MSU estimates that in the next 10 years, approximately 400 new full-time jobs will be created as scientists and support staff use the FRIB to both learn about the early universe and create radiological agents important to nuclear medicine.
The FRIB will also create about 5,000 temporary construction jobs over a one-year period. MSU plans to break ground on the FRIB in the next few weeks.
The state bonds are to be repaid by an expected future state budget appropriation of about $7.5 million a year.READ MORE: James Craig Announces Run For Governor, Begins To Campaign
The MEDC also announced Michigan Strategic Fund approval of support for the following business expansions:
* Eberspaecher North America Inc., an auto exhaust system supplier, has been operating in Michigan since 2000 and is part of the Eberspaecher Group based in Esslingen am Neckar, Germany. Eberspaecher plans to expand its plant in Brighton from 110,000 square feet to more than 300,000 square feet. When combined with other investments in Michigan, the project will generate a total capital investment of $122 million and create 545 new jobs. To support the effort, the MSF approved a $4.5 million Michigan Business Development Program performance-based grant. Brighton is also considering a property tax break for the project. The Michigan Department of Transportation is also considering a Transportation Economic Development Fund grant for the project.
* Kalitta Air LLC, a Federal Aviation Administration certified provider of aircraft maintenance, repair and overhaul services, plans to build a new 80,000-square-foot airplane hangar at its current base at Wurtsmith Airport in Oscoda Township. The project involves a total investment of up to $9.7 million and the creation of 200 jobs, resulting in a $2 million Michigan Business Development Program performance-based grant. Oscoda Township has offered tax increment financing at an estimated value of $2.3 million over 29 years.
* TD Ameritrade Holding Corp. (NYSE: AMTD), based in Omaha, Neb., provides online brokerage services. The company plans to open a new technology center focused on advanced technology and innovation in Ann Arbor. The project is expected to generate up to $3 million in total capital investment and create up to 50 new jobs, resulting in a $500,000 Michigan Business Development Program performance-based grant. Michigan was chosen over competing sites in New Jersey, Nebraska and Illinois. Ann Arbor Spark has offered talent recruitment assistance for the project.
The state also approved the following Michigan Community Revitalization Program incentives:
* Ashley Owner LLC is part of Princeton Domino Investments LLC and Lamont Street Partners. Ashley Owner plans to renovate the vacant, historic Milner Hotel at 1526 Centre St. in Detroit. The renovated building will include 61 apartments, 5,200 square feet of commercial office space and two retail units. The project is anticipated to generate $8.2 million total capital investment and create 25 full-time jobs. As a result, the project is receiving a $1 million Michigan Community Revitalization Program performance-based grant. The Detroit Brownfield Redevelopment Authority also received approval for state school tax capture valued at $482,075.
* Midland DTH LLC, a corporation organized by SSP Associates Inc., is proposing a mixed-use, five-story redevelopment at 102 to 128 E. Main St. and 108 Ashman St. in Midland. The new 65,000 square-foot building will include extended-stay hotel suites, apartments, a restaurant, office space and an underground parking garage. The project is anticipated to generate $23 million in total capital investment and create 46 full-time jobs, resulting in a $4.8 million Michigan Community Revitalization Program performance-based loan. The city of Midland also received approval of local and school tax capture valued at $4.65 million.
* Strathmore Apartments Limited Dividend Housing Association LLC, in coordination with McCormack Baron Salazar and Midtown Detroit Inc., plans to renovate the former Strathmore Hotel at 70 W. Alexandrine in Detroit. The project will convert the vacant, blighted eight-story building into 129 apartments with 2,000 square feet of retail space on the first floor. The project is expected to generate $28.4 million in total capital investment and create three jobs. As a result, the project will receive $3.5 million in Michigan Community Revitalization Program performance-based equity contribution.
The MSF also approved $7,600,176 in Downtown Infrastructure Grant program funds to 14 Michigan communities for public infrastructure improvements. The communities will provide a total of $2,715,620 in matching funds. Details of the grants will be announced on Friday, Feb. 28.
The MSF also approved the following amendments to earlier MEGA Tax Credit agreements:
* AVL Powertrain Engineering Inc. Job Creation MBT Credit Amendment – AVL, a 60-year-old powertrain consulting company based in Austria, established its North American operation in 1994 in Southeast Michigan. In 2006 the company received a High Technology/High Wage Job Creation Michigan Business Tax Credit to expand its Plymouth Township operations. The company was also awarded a High Technology Job Creation MBT Credit in 2009 to expand its location in Ann Arbor. The company is considering an expansion project with the potential for up to 100 new jobs at its Plymouth Township and Ann Arbor locations. As a result of this growth, MSF approved an increase in the total new qualified jobs by 100 for the years 2015 through 2017.
* McLaren Performance Technologies Inc. MEGA Job Creation Tax Credit amendment – McLaren Performance Technologies Inc., a division of global manufacturing company Linamar Corp., received a high technology/high wage MEGA Job Creation Tax Credit for 34 jobs to expand in Livonia in 2009. McLaren has collected its credit through 2012 and has reached the ceiling of 34 qualified new jobs. Currently the company plans to consolidate its sales office in Southfield and engineering center in Livonia to create a sales and engineering center on the existing property in Livonia. The consolidation will result in the creation of 75 new jobs and create a state of the art technology and sales center to support Linamar and McLaren customers. As a result of this growth, MSF approved an increase in the maximum allowance for new qualified jobs on McLaren’s MEGA credit by 75 from 34 to 109 for the years 2015 through 2019. For employment information with McLaren, visit http://www.linamar.com/careers.
Michigan residents interested in seeking employment with any of Michigan’s growing companies should check mitalent.org, where more than 60,000 jobs are available in a variety of industries.MORE NEWS: Flat Rock Sewers Free Of Gasoline From Ford Gas Leak
For more on the MEDC and its initiatives, visit michiganbusiness.org. For Michigan travel news, updates and information, visit michigan.org.