MI: Snyder: $767M in New Investments to Create Nearly 5,000 Jobs
30 Jul, 2013
The Michigan Strategic Fund (MSF) approved state support for three economic development projects in Detroit, Lansing and St. Joseph that are projected to generate more than $767 million in new investment and create nearly 5,000 jobs.
“The reinvention of Michigan is working and making our state the Comeback State. These projects will add to our growing momentum and economic growth,” said Snyder.
“We’ve put in place bold reforms to improve Michigan’s business climate and create jobs. Those reforms are based on policies that embrace public-private partnerships and encourage businesses to expand and create more and better jobs. These projects in Detroit, Lansing, and St. Joseph reflect the underlying strength of those policies and how they’re helping to create jobs for the people of Michigan.”
The Catalyst Development Project for the Detroit Downtown Development Authority and Olympia Development of Michigan, LLC, was approved by the MSF along with an inducement resolution for issuance of $450 million in private activity bonds. The bonds will finance the construction of a new entertainment and commercial district in Detroit including a multipurpose events center that will serve as the future home of the Detroit Red Wings.
Construction of the arena is expected to create an estimated 2,900 direct construction jobs. With the related commercial and entertainment venues, the total direct construction jobs created by the project are estimated at 4,380. The project agreement requires at least half of the jobs created to be filled by Detroit residents.
The project includes acquisition of land, construction of the events center, the acquisition and installation of furnishings and equipment, and further development of the surrounding district.
The investment for the project is estimated at $650 million.
The MSF also approved two grants to support the $100 million expansion of the corporate headquarters for the Jackson National Life Insurance Company, a leading provider of retirement solutions and educational resources for industry professionals and consumers. The expansion of the company’s Lansing facility will include a connector from the existing headquarters building to a new 260,000 square-foot office complex and a new 80,000 square-foot print center and warehouse on an adjacent piece of land.
The investment will create 400 jobs over the next five years, resulting in MSF approval of a $3 million Michigan Business Development Program performance-based grant. In addition, MSF approved a $3 million Community Development Block Grant for infrastructure activities at the site, including sanitary sewer improvements, water improvements and electric infrastructure. The project will result in the creation of 278 full time equivalent positions over the term of the work period.
MSF also approved $2.1 million in Community Development Block Grant funds for infrastructure improvements in St. Joseph for the Harbor Village at Harbor Shores, LLC. Harbor Village at Harbor Shores will redevelop a vacant former industrial site in the city of St. Joseph into a 100-room, boutique/resort style hotel with a restaurant, bar, meeting rooms, fitness and spa area, conference space and two floors of condos with private indoor parking.
The infrastructure improvements will include installation of public water, sewer, parking lot and walking trails. The company will invest $17.6 million and create 68 full time equivalent jobs over the next two years, with at least 51 percent of the positions being held by low- and moderate-income individuals. The city of St. Joseph will contribute $266,120 toward the project.
The project was also awarded a $900,000 Michigan Community Revitalization Program performance-based grant.
“Today’s projects will help strengthen and revitalize these Michigan communities and help growing companies generate new job opportunities,” said MEDC President and CEO Michael A. Finney. “We should all applaud these investments in Michigan’s future.”
Pure Michigan is a brand on the rise, representing business, talent and tourism initiatives across Michigan. These efforts are driven by the Michigan Economic Development Corporation, which serves as the state’s marketing arm and lead agency for business growth, jobs and opportunity with a focus on helping grow Michigan’s economy.