State officials Tuesday announced several major tech company expansions across the state, as well as a variety of other economic development wins. Together, the 10 projects announced are expected to create a total of 2,051 Michigan jobs.
Two high-tech companies, EcoMotors International Inc. and Raval USA Inc., will expand in Troy and Rochester Hills respectively as a result of assistance from the Michigan Economic Development Corp.
Also, the MEDC and the Michigan State Housing Development Authority are backing a major mixed-use redevelopment at the former Kmart headquarters site in Troy.
Together, the three projects will generate $334 million in new investment and more than 1,000 new jobs.
EcoMotors International, a developer of next generation diesel engines plans to launch a new, $7 million technical center in Troy. The project is expected to create 156 jobs at the company and an additional 183 spin-off jobs according to an economic analysis conducted by the MEDC. Based on the MEDC’s recommendation, the Michigan Economic Growth Authority approved a state tax credit valued at $5.1 million over 10 years to win the project over a competing site in California. The city of Troy is considering an abatement of up to 12 years to support the expansion. The company currently employs seven associates in Troy.
Raval USA, the U.S. subsidiary of Israel-based Raval ACS Ltd., plans to invest approximately $7 million in a new design, development and manufacturing center in Rochester Hills. The company produces valves and venting systems for vehicle fuel tanks. The project is expected to create 65 jobs at the company and an additional 169 spin-off jobs according to an economic analysis conducted by the MEDC. Based on the MEDC’s recommendation, the Michigan Economic Growth Authority approved a state tax credit valued at $1.1 million over 10 years to win the project over a competing site in Tennessee. The city of Rochester Hills is considering an eight-year abatement worth $184,682 to support the project.
As for the Kmart site, the city of Troy will use state and local tax capture valued at $13.2 million to support the new $320 million Pavilions of Troy redevelopment project on the 40-acre site of the former Kmart headquarters on Big Beaver Road. Developer Richardson Development Group Inc. will demolish the vacant headquarters and transform the site into a pedestrian-friendly, mixed-use development that will include approximately 440,000 square feet of commercial and retail space, 132 residential units, a public ice skating rink, a 3,000-seat theater, restaurants, a grocery store and parking. The project is expected to create 500 new jobs.
Also, TransIT Solutions LLC, a software development and consulting company, plans to invest approximately $3 million over the next five years to expand its operations in Bay City. The project is expected to create 247 new Michigan jobs, including 105 directly by the company.
Assistance offered through the MEDC helped convince the company to choose Michigan for their high-tech expansion over competing sites in Arizona, California and Wisconsin.
Based on the MEDC’s recommendation, the Michigan Economic Growth Authority board approved a state tax credit valued at $986,000 over seven years to win the company’s investment. To support the project, the City of Bay City is considering a 12-year Industrial Facilities Tax Exemption abatement worth $138,500 and a 12-year Obsolete Property Rehabilitation Exemption worth $281,541.
Established in 2005, TransIT Solutions develops software solutions for the transportation industry. The company plans to renovate a building on Washington Ave. to house information technology software writers. TransIT Solutions currently employs four associates in Bay City.
The MEDC also Tuesday announced two brownfield redevelopments in Detroit that will attract more than $20.4 million in new investment and create 188 new jobs. The projects include a new neighborhood commercial center near the Warren-Livernois intersection on the city’s southwest side and a five-story mixed-use commercial building at the heart of the Wayne State University campus on Cass Avenue in Midtown.
State and local tax capture valued at $1.8 million will be used to support demolition of severely blighted and abandoned industrial and commercial buildings on 16 acres near the corner of Warren and Livernois in southwest Detroit. The Detroit Brownfield Redevelopment Authority will support construction of an 85,000- to 90,000-square-foot neighborhood commercial center for grocery and department stores and other commercial uses. The project will create 150 new jobs and generate $7.4 million in capital investment.
A five-story mixed-use commercial structure housing 10,000 square feet of retail space will rise on Cass Avenue near Warren at the heart of the Wayne State University campus in Midtown Detroit, formerly a gas station site. The Detroit Brownfield Development Authority will use local tax capture of $429,998 to support the project which will create 64 residential suites in the upper four stories and 26 enclosed parking spaces. Total investment of $13 million is projected with 33 jobs created.
Also announced Tuesday: a mid-price extended-stay hotel and condos and a ‘green’ residential and neighborhood retail center will transform two brownfield sites in Grand Rapids and Lansing, respectively.
Developer SSGRCC LLC will use a state brownfield tax credit of $3.2 million to transform a vacant building on the site of the former Grand Rapids Foundry into a mid-price, extended-stay hotel at the corner of Trowbridge Street and Bond Avenue in Grand Rapids. The nine-story, 90,000-square-foot facility with 137 suites will be one of the highest density buildings in the Monroe North neighborhood and within walking distance of Michigan Street Medical Hill. The $21-million investment is expected to lead to creation of 30 new jobs.
State and local tax capture of $1.1 million will be used by Sycamore Street Partners LLC for three-phase residential and retail development on a contaminated site in Lansing. The Lansing Brownfield Redevelopment Authority will support construction of 70 condominiums and a 5,000-square-foot neighborhood retail center on Ottawa Street. It is designed as a ‘green’ project incorporating open public green space, energy efficiency and water-saving features. Creation of 11 jobs is anticipated on capital investment of $11.9 million.
State officials also announced that Marimba Auto LLC, a global supplier and manufacturer of tubular products, will invest $16 million to relocate and expand its current operations from Belleville to Canton Township. The company plans to build a new 130,000-square-foot plant. The project is expected to create 170 new Michigan jobs, including 72 directly by the company.
Based on the MEDC’s recommendation, the Michigan Economic Growth Authority board approved a state tax credit valued at $851,000 over seven years to win the company’s investment. Canton Township is considering a 12-year abatement worth $544,247 to support the project.
Finally, officials announced that Northland-Marvel will invest $10.2 million in a new 175,000 square-foot manufacturing and innovation center in Greenville. The expansion is expected to create 337 new Michigan jobs, including 157 directly by the company. Assistance offered through the MEDC and the city of Greenville helped convince the company to expand in Michigan over a competing site in Indiana.
Based on the MEDC’s recommendation, the Michigan Economic Growth Authority board approved a state tax credit valued at $1.8 million over 12 years to win the company’s expansion. In addition, the MEDC will make available up to $42,500 in job training funds through the Economic Development Job Training program. To support the project, the city of Greenville is considering a 12-year abatement valued at $217,000 and the company will realize additional savings by locating the project in the Greenville Renaissance Zone.