Michigan Approves Economic Development Incentives for Toyota and Other Projects Creating 352 Jobs

Michigan has approved community revitalization and economic development incentives for projects creating 352 new jobs and generating a total of nearly $148 million in capital investment.

Jobs in the Comeback State

Jobs in the Comeback State (photo – michiganbusiness.org)

The biggest project that received approval for state and local incentives is a proposed expansion by Toyota Motor Engineering and Manufacturing North America, Inc. in York Township, MI.

Toyota plans to invest up to $32.5 million and create 250 jobs. These are direct procurement positions being relocated from an existing facility in Erlanger, KY. The company chose the Toyota Technical Center campus in Michigan over several other competing sites in multiple states.

The Michigan Economic Development Corporation announced that Toyota has been awarded a $4 million performance-based grant under the Michigan Business Development Program for this project.

York Township is additionally considering approval of local incentives in the form of a 12-year property tax abatement that could save the company up to $4.6 million.

The project was secured through a collaborative effort involving MEDC, York Township and Ann Arbor SPARK.

Osamu Nagata, president and chief executive officer of Toyota Motor Engineering and Manufacturing North America, Inc., said that they look forward to strengthening ties with Michigan even further and making continued investments that will help drive the success of Toyota, its supplier partners and the state for many years to come.

Apart from the Toyota project, incentives were also approved for four redevelopment projects being undertaken by the City of Detroit Brownfield Redevelopment Authority and one more by the Redford Charter Township Brownfield Redevelopment Authority.

One of the Detroit redevelopments is the Orleans Landing project, a mixed-use development that will include 20 new buildings with commercial and retail space and 278 multifamily housing units. This project is expected to generate $61 million in capital investment and create 39 new full-time jobs.

DBRA received approval to spend $6,495,862 in local tax revenues for this project, supported by $7.61 million in equity support under the Michigan Community Revitalization Program, along with reauthorization of $6,983,874 in tax credits under the Brownfield Michigan Business Tax Credit program.

Another property on McGraw Street in Detroit being redeveloped by the DBRA will be used as a warehouse and office building by automotive service provider Comprehensive Logistics Co. This previously announced project is creating 240 jobs and generating $19.1 million in capital investment, and is supported by an $800,000 performance-based grant.

The DBRA also received approval to use local taxes for the redevelopment of the historic El Moore apartments in Detroit, owned by sustainable development practitioner Green Garage, LLC, into 23 residential units surrounded by open green spaces, greenhouses, urban agriculture infrastructure, and a building housing a food market for locally produced goods. This project is expected to create two full-time jobs and generate $6.9 million in capital investment.

Approval for the use of local taxes for the Du Charme Place LLC redevelopment project in Detroit will provide new housing with 185 apartments. This project, which includes a fitness center, is expected to create six new full-time jobs and generate $38.5 million in capital investment.

In Redford Charter Township, the use of local taxes for the George Matick Auto Campus project with a renovated car dealership and addition of a car wash and fuel service center will likewise help create 55 new jobs and bring $9 million in capital investment.

Michael A. Finney, president and chief executive officer of the Michigan Economic Development Corp., said that these projects, all examples of public-private teamwork, will help strengthen communities and help growing companies generate new job opportunities.

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