The Michigan Economic Development Corp. in Lansing announced the Michigan Strategic Fund’s approval of projects to support a new speculative industrial building on the site of the former American Motors Co. headquarters in Detroit. Overall, the approved projects represent a total capital investment of more than $424 million statewide.
AMC’s corporate headquarters redevelopment project will redevelop the approximately 50-acre site, including the construction of an approximately 790,000 square foot building for industrial warehousing or light assembly tenants. The project is expected to result in a total capital investment of $66 million and, when fully occupied, will result in the creation of over 350 full-time equivalent jobs.
The AMC site is currently one of the largest and most severely degraded and contaminated industrial sites in Detroit. The project makes the site productive and helps build Michigan’s portfolio of sites.
“Today is the culmination of five years of intensive work by the DEGC and the City of Detroit listening to neighborhood residents and working tirelessly to figure out how to fund the more than $30 million in cleanup work. and environmental demolition needed to redevelop this long-standing eye sore into the economic engine and employment center that it was for this neighborhood and our city,” says Kenyetta Bridges, Vice President of Developmental Services economics and investment at Detroit Economic Growth Corp.
The City of Detroit Brownfields Redevelopment Authority today received approval from MSF for a state tax garnishment worth $5,089,583 to be used to reimburse brownfields activities on the site. The City is supporting the project through a local tax abatement worth $7,547,417 and a property tax abatement on industrial facilities worth $7.5 million.
“Our investment in the former AMC headquarters is aimed at redeveloping the old site for long-term sustainability by returning the site to production, regenerating taxes in the community and further strengthening the economy through the creation jobs,” said Tim Conder, vice president of development for NorthPoint Development in Kansas City.
Other projects supported include Gentex Corp., headquartered in Zeeland and established in 1974. The company is a high-tech supplier to the global automotive, aerospace and construction industries. commercial fire protection. Gentex ships its products to automakers worldwide and currently employs more than 5,000 Michigan residents.
Gentex plans to build a new high-tech manufacturing facility and distribution center in Zeeland Charter Township and expand its existing manufacturing facility in Zeeland City. The project is expected to generate a total investment of $300 million and create 500 well-paying jobs. Michigan was chosen for the project over competing sites in Alabama, Ohio, South Carolina, Tennessee and Virginia.
The Michigan Strategic Fund has approved the following in support of the project:
- A $5.5 million performance-based grant from the Michigan Business Development Program.
- A $1.89 million grant for Jobs Ready Michigan.
- A 100% state essential services assessment waiver over 15 years, valued at $3.8 million.
Gentex offers a variety of training opportunities and works with Michigan Works! and Lakeshore Advantage to reach local talent. The project will also bring immediate job growth with a large and growing automotive supplier and further cement the company’s manufacturing presence and future growth in Michigan.
The Charter Township of Zeeland and the City of Zeeland plan to approve property tax abatements in support of the project, and the MEDC has also authorized a state school tax abatement to be used in conjunction with the abatement. local.
Individuals interested in a career at Gentex can Click here.
The next project to receive support is the American Rheinmetall Vehicle (ARV), headquartered in Sterling Heights and part of Rheinmetall AG, a global automotive and defense trading company. ARV specializes in the development of combat vehicle platforms that provide next-generation products to the US Department of Defense and federal and state law enforcement agencies.
ARV is expanding its design and development, engineering and systems integration for its major customers and plans to build a new North American headquarters in Sterling Heights where it will house offices and manufacturing space for its prototyping operations.
The project is expected to generate a minimum capital investment of $3 million and create more than 150 high-wage jobs, supported by a $1.5 million performance-based grant from Michigan’s Business Development Program. Michigan was chosen for the project over competing sites in other states.
The company brings with it the global portfolio of Rheinmetall vehicle systems to the US market. American Rheinmetall Vehicles offers tracked and wheeled combat vehicle platforms with associated subsystems.
The Sterling Heights site currently has 52 full-time employees with roughly the same number of contractors on the team. The expansion will result in immediate high-wage job growth in the region while retaining the company’s current employees in Michigan.
“We are very grateful for all that MEDC has done to support our efforts to grow our business here in Michigan,” said Matt Warnick, CEO of ARV. “This new facility opens a growth path for us that allows us to increase critical capability and competitiveness in the combat vehicle defense industrial base in Michigan and the United States as a whole.”
The City of Sterling Heights has volunteered staff time to support the project. People interested in a career with ARVs can Click here.
501 and 503 S. Capitol redevelop the former Lake Trust Credit Union headquarters and adjacent parking lot in downtown Lansing.
The project will transform the vacant seven-story office building into commercial space and 55 new multi-family apartments. Additionally, a five-story mixed-use building will be constructed on the vacant parking lot that will include 117 multi-family apartments and commercial space on the first floor.
The project will also enhance the surrounding property by providing parking and improved outdoor space for tenants, and will make public improvements including curbs, sidewalks and waterways.
Project 501 is expected to generate a total capital investment of $17.9 million and create nine full-time equivalent jobs, supported by MSF’s approval of a state tax clawback valued at $855,628.
Project 503 is expected to generate a total capital investment of $31.2 million and create five full-time equivalent jobs, supported by a state tax clawback valued at $427,482. In total, the projects will generate a capital investment of $49.2 million and create 14 jobs. The tax collection will be used to reimburse brownfield activities on the sites.
The City of Lansing is supporting the projects through the approval of local tax levies valued at a total of $2.6 million.
“The repurposing of the Lake Trust parcel has been an incredibly important revitalization effort at the south end of our town center,” says Lansing Mayor Andy Schor. “Creating new housing, particularly by converting old offices, will be great for Lansing as we continue to see a need for more downtown housing. I appreciate the work of everyone at MEDC and Lansing Economic Development Corp. to ensure that this project continues to move forward.
MSF has also taken the following actions that will increase opportunities for small businesses and Michigan’s tourism and hospitality industry:
International trade service providers — Approved seven service providers to support MEDC’s international business program by helping small and medium-sized businesses in Michigan assess, enter, and compete successfully in international markets. The International Trade Program is committed to increasing Michigan’s export opportunities by helping companies identify and enter key emerging foreign markets. In fiscal year 2021, the program helped 321 Michigan businesses that reported sales in 117 international markets.
Award of travel marketing and advertising contract – Approval of $9.3 million in federal funds from the EDA State Travel, Tourism, and Outdoor Recreation Grant American Rescue Plan Act (ARPA) for travel and tourism marketing and advertising efforts nationwide state to help the travel industry rebound from the effects of the COVID-19 pandemic. Funding will be awarded to MMGY Global, a Michigan-owned integrated marketing agency, for tourism marketing and advertising initiatives that promote Michigan as a premier four-season travel destination.
“The projects approved today reflect Team Michigan’s people-centered approach to economic development, which creates economic opportunity in West Michigan and the Detroit metro area and elevates risk-taking entrepreneurs, while supporting needed housing and vitality in downtown Lansing,” said Quentin L. Messer Jr., CEO of MEDC and President and Chairman of the Board of MSF.