Michigan Strategic Fund Approvals Will Create 1,893 Jobs

Business expansions, community revitalization projects, and more will generate nearly $450 million in investment throughout the state.

The Michigan Strategic Fund (MSF) board approved a range of projects — including a new Amazon fulfillment center in Livonia, a redevelopment project with Ford in downtown Dearborn, alleviation of brownfield conditions at Lipari Foods’ facility in Warren, and Stryker’s expansion in Portage — at its final meeting of 2016. The projects are expected to generate a total capital investment of nearly $450 million and create 1,893 jobs throughout the state.

“Today’s projects, including major investment announcements in Southeast Michigan and community revitalization projects around the state, demonstrate that our state’s economy continues to expand and diversify,” said Gov. Rick Snyder. “The commitment and innovation of these companies, combined with the high quality of Michigan’s talent, will keep our state moving forward. I applaud this tremendous investment in Michigan’s future.”

The following business growth projects were among those approved by the MSF board:

  • Michigan Strategic Fund
    Amazon Marketplace Vice President Peter Faricy announces Amazon’s expansion in Detroit and the formation of a technology hub. (Photo: Tanya Moutzalias | MLive Detroit)

    Online retail giant Amazon plans to open a large volume product fulfillment center in the city of Livonia, investing nearly $90 million and creating 1,000 jobs initially when the facility opens in October 2017. To meet increasing demand for products available through Amazon, the retailer could add an additional 500 jobs, and as many as another 1,500 during busy holiday seasons. As a result, the project has been awarded a $7.5 million Michigan Business Development Program performance-based grant that will help support employee recruitment efforts. Michigan was chosen over competing sites in Indiana and Ohio. The city of Livonia has offered support to the project in the form of property tax abatement. Ashley Capital is building and leasing the new 1 million square foot mega-distribution facility on land that previously contained a GM Delco Chassis plant.

  • Michigan Strategic Fund
    Ford Motor Co. plans to redevelop three blocks in downtown Dearborn to include new office and retail space, and a park. The project, part of a massive 10-year plan for Ford, will cost roughly $60 million to complete. (Image: Michigan Strategic Fund)

    Ford Land Development Corp., a wholly-owned subsidiary of Ford Motor Company, plans to redevelop 12 parcels of property encompassing three blocks in the city of Dearborn’s west downtown. Working in partnership with the city of Dearborn, Ford Land will invest $60 million into a mixed-use redevelopment in two blocks of prime property on the city’s main street, including plans to renovate the historic Wagner building, a 120-year-old former hotel at the corner of Michigan and Monroe. The completed project will include demolition of existing vacant structures while preserving the façade of the Wagner building. Two new buildings will be constructed at the site with Ford Motor Co. occupying offices on top floors and retail filling out the lower and street-side floors. When completed, the Wagner Place project is expected to create 50 retail jobs. In the long term, as many as 600 Ford employees could be at the west downtown site as a result of Ford Motor Co.’s plan to relocate and consolidate staff. MSF approved a $3 million performance-based grant for the city of Dearborn that will provide key gap financing in the construction of a 373-space parking structure that will be owned and operated by the city at the downtown site. In addition, the City of Dearborn Brownfield Redevelopment Authority received MSF approval of $31.4 million in local and school tax capture for the alleviation of brownfield conditions at the site.

  • The City of Warren Brownfield Redevelopment Authority received MSF approval of $1.9 million in local and school tax capture for the alleviation of brownfield conditions at the Lipari Foods, Inc. expansion in Warren. Lipari, a wholesale food distributor that serves retailers and food service establishments throughout the Midwest, plans to construct a new warehouse and production facility near its existing facility in Warren to support its acquisition strategy over the next few years. The project will generate a total capital investment of $39.4 million, and will involve a large consolidation of work to be brought to Michigan which will generate 337 new jobs. The local and school tax capture will be used for lead and asbestos abatement, demolition activities, and preparation of the site for redevelopment.
  • Medical technology company Stryker Corporation’s medical instruments division is experiencing significant growth and the company needs an expanded facility to support a new corporate campus. The campus, to be located in the city of Portage, will feature a customer experience center, functioning showroom, R&D lab, bio-skills lab as well as space for sales, marketing and support functions. The company plans to establish a new 485,000 square-foot facility, investing more than $130 million and creating 105 jobs. As a result, the project has been awarded a $1 million Michigan Business Development Program performance-based grant. Michigan was chosen over competing sites in a number of other states. The city of Portage has offered support to the project in the form of property tax abatement, and the Kalamazoo County Brownfield Redevelopment Authority is offering a brownfield redevelopment incentive.

“Today’s MSF actions offer further evidence of our commitment to help companies grow and generate new job opportunities for Michiganders,” said Michigan Economic Development Corporation (MEDC) Chief Executive Officer Steve Arwood. “It is through the effort of public-private partnerships that today’s projects are taking place, and we’re pleased to support those collaborations.”

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