new Ford agreement

• Rehabilitation of vacant buildings to increase housing in Detroit’s historic Paradise Valley district, adding 80 residential units
• Blighted property in City of Pontiac to be converted into housing development, adding 50 residential units
• Amended MSF incentives secure key projects from Ford Motor Company, including construction of Blue Oval Battery Michigan in Marshall
• Up to $20.8 million in SSBCI 2.0 funding awarded to two VC investment funds to support early-stage companies in AI, technology sectors
• Gestamp North America, Inc. expanding its Michigan manufacturing operations at three locations, opening new facility

LANSING, Mich. – Governor Gretchen Whitmer joined the Michigan Economic Development Corporation today in announcing Michigan Strategic Fund (MSF) approval of projects that will add critical housing to the cities of Detroit and Pontiac, as well as secure key projects from Ford Motor Company in the state to build on Michigan’s manufacturing leadership in the automotive industry. 

“Today’s projects, which create up to 580 new jobs and 130 residential units, reflect our commitment to showing the world that anyone and any business can ‘Make It in Michigan,’” said Governor Whitmer. “Let’s continue to work together to revitalize and increase housing in our great cities while supporting the expansion of companies who helped build Michigan into the automotive powerhouse it is.”

“Team Michigan remains steadfast in our commitment to the ‘Make It in Michigan’ economic development strategy’s focus on People, Places and Projects to revitalize our communities and support employment and entrepreneurial growth in key industries across our state,” said Quentin L. Messer, Jr., Michigan Economic Development Corporation CEO and Michigan Strategic Fund President and Chair. “Thank you to Governor Whitmer, the Michigan Legislature, the MSF Board, and local officials for their collaboration, provision of economic development tools, and tireless work to support our execution of the ‘Make It in Michigan’ strategy that is working to ensure everyone can truly ‘Make It in Michigan.’”

Broadway Lofts Redevelopment Project to add housing and commercial space in City of Detroit’s historic Paradise Valley district

The MSF board also approved support for the Broadway Lofts Redevelopment Project in the City of Detroit, which will convert and add onto three vacant buildings to create a single, multistory, mixed-use building in the city’s historic Paradise Valley district.

Once completed, the project will include 80 new residential units – with 20 percent of the units reserved at 60 percent of Area Median Income – and approximately 6,462 square feet of commercial space, building density and walkability in the area. As Detroit’s historic epicenter of African American businesses, the Paradise Valley district will benefit from increased affordable housing, building density, and walkability with the completed Broadway Lofts project.

Broadway Detroit Development II, LLC is an affiliate of Basco of Michigan, Inc. For nearly a decade, Basco has made significant investments in and around downtown Detroit, including the redevelopment and historic restoration of 751 Griswold, which is now home to Marxmoda; the conversion of the U.S. Mortgage Bond Building at 607 Shelby into a state-of-the-art, mixed-use multi-office and retail property; a gut and rebuild of 220 Congress into a mixed-use tech hub anchored by Venture-X; and historic restoration and redevelopment of 311 East Grand River, which has been repositioned as a multi-venue food and beverage destination.

“For several years, we have been redesigning and value engineering this project in effort to set off construction cost increases and other challenges that have plagued the industry since COVID,” said Roger Basmajian, CEO and president of Basco of Michigan, Inc. “I am proud to say that we have found a financially feasible path to build a high-rise project without reneging on the promises made to the city under our development agreement to respect the historic district and to restore the building facades while creating density. Furthermore, we are setting aside 20 percent of our units to be deeply affordable at 60 percent AMI which translates to real diversity for the downtown. This will be the first large-scale residential project in the newly created Paradise Valley Cultural and Entertainment District and sure to be a catalyst for other projects to follow.”

The Broadway Lofts project, supported by an $8,219,556 Michigan Community Revitalization Program loan, represents a total capital investment of $32.7 million. Brownfield Tax Increment Financing with state tax capture capped at $3,455,600 was also approved to make the conversion of the vacant buildings and addition of mixed-income housing financially feasible.

Rehabilitation of blighted and vacant property to increase housing in City of Pontiac

The MSF board also supported the rehabilitation of a blighted and long-vacant building in the City of Pontiac to help meet the growing demand for available housing in the area. The Casa Del Rey building at 111 Oneida near the city’s downtown will be updated into a 50-unit housing development, increasing density and acting as a catalyst for additional revitalization in the community.

Coleman Allen LLC is a family business co-founded by Ronita and Gregory Coleman, who rehabilitate blighted places in Metro Detroit to high-quality, accessible, and diverse housing options. Together, they have addressed multiple properties in Oakland County, owning and managing nine rental properties in Metro Detroit. The development team also includes partner entity Architech, the project general contractor and owner’s representative. The 111 Oneida project is their first multi-unit commercial development. The Oakland County Land Bank is selling the property to the development team.

"As enthusiasts of Pontiac, we are thrilled to embark on the revitalization of Casa Del Rey, a nationally registered historic building once owned by C.L. Groesbeck,” said Ronita Coleman of Coleman Allen. “Our endeavor not only connects us to the rich history of this landmark but also charts a new course for its future, ensuring sustainable and equitable housing for generations to come. This project's realization owes immense gratitude to the support of our community, as well as local and state government entities. We thank God for this opportunity of a lifetime."

The project, supported by a $2,673,400 MCRP loan, represents a total capital investment of $13.9 million. Support also includes loans from IFF and the Oakland County Housing Trust Fund and a MSHDA Missing Middle Grant of $3,500,000. In addition, the project is leveraging MSHDA Housing TIF, with an estimated value of $4,342,000, and a Neighborhood Enterprise Zone tax abatement. The MCRP loan incentive will fill the remaining financing gap and allow the project to remain financially feasible.

Amended MSF incentives secure key projects from Ford Motor Company, including construction of Blue Oval Battery Michigan in Marshall

The board also approved amendments to MSF incentives previously authorized to support key projects from Ford Motor Company, including the construction of a new electric vehicle (EV) battery manufacturing facility – Blue Oval Battery Michigan (BOBM) – in Calhoun County and a multi-site project at facilities throughout Michigan.

Following the November 2023 announcement that Ford would be retiming and resizing some of its investments, including the Marshall project, the MEDC has worked diligently with the company to develop a fair and revised incentive package. The restructured incentive package will appropriately and necessarily address the project's rightsizing, balancing Ford’s investment and growth in Michigan and allowing the company to proceed with the BOBM project and establish a new EV battery manufacturing facility in Marshall. The amendments also reflect updated site development activities.

“We are grateful to the Michigan Strategic Fund board and the Michigan Economic Development Corporation for their support as we build upon Ford’s strong history of job creation and investment in Michigan,” said Tony Reinhart, the company’s director of state and local government affairs. “We are nimbly adjusting our manufacturing operations to match evolving customer demand and the Michigan Strategic Fund board is revising its incentive offers accordingly.”

Amendments to the Marshall project approved by the board include:

• A reduction of the Critical Industry Program (CIP) grant amount from up to $210 million to $141 million for the creation of at least 1,700 Qualified Jobs and capital investment of $2.5 billion, with the ability for Ford to earn up to $166 million for the creation of 2,100 Qualified Jobs and capital investment of $3 billion
• Mutual recission of the 15-year MSF Renaissance Zone approved in February 2023
• State Essential Services Assessment (SESA) exemption authorization to exempt the SESA on Eligible Manufacturing Personal Property associated with BOBPM acquired on or after February 13, 2023, through the term of the agreement

Additionally, the board approved Strategic Site Readiness Program performance-based grant amendment requests from the Marshall Area Economic Development Alliance (MAEDA), including amendment of the budgets, parcel list and purchase requirements, revised BOBM site area, updated site plan and utility locations, and updated schedules for site improvements and water & wastewater improvements.

“It’s exciting to see hundreds of workers on the MAJOR Campus that will ramp up to almost a thousand by the end of the year. In the short term, this means more people visiting our shops and spending money at our small businesses, and in the long term it means more jobs, personal wealth and revenues for our community,” said James Durian, CEO of MAEDA. “We are watching with excitement as the steel goes up on this innovative facility that will create new career pathways for young people in the Marshall area.”

For the company’s multi-site project, the board supported amendments to incentives originally approved in June 2022, including:

• Mutual recission of the $100.8 million CIP grant
• A modification to the existing 15-year SESA Exemption to expand the time frame in which Ford and/or BOBM can make eligible investments in Eligible Personal Property from three years to 15 years after MSF approval and execution of the agreement

The amendments will encourage future investment in ten facilities across Michigan, solidifying Ford’s presence in the state.

Approved federal SSBCI 2.0 Small Business Venture Capital Program funding to strengthen state’s entrepreneurial and innovation ecosystem

The MSF board approved activation of federal State Small Business Credit Initiative (SSBCI) 2.0 Small Business Venture Capital Program funding that will help strengthen Michigan’s entrepreneurial and innovation ecosystem through support of early-stage companies innovating in the AI, mobility, advanced manufacturing, space, and next-gen computing sectors.

eLab Capital Partners, an AI-focused venture capital firm with offices in Ann Arbor and San Mateo, California will receive up to $11 million in SSBCI 2.0 funding for the formation of the Michigan Innovation Fund to make investments in Michigan-based portfolio companies.

The Michigan Innovation Fund will act as a sidecar fund to the primary Regional Fund, which is designed to invest equity in early-stage companies innovating in the AI sector.

eLab has a strong track record of investing in research-led spinouts from the University of Michigan and relies heavily on its partners' network and involvement in the Michigan entrepreneurial and investor ecosystem to source deals.

The board also approved up to $9.8 million in SSBCI 2.0 funding for Side Door Michigan, which will be launched as a venture capital investment fund with a goal of supporting technology companies operating within Michigan.

Leveraging Michigan's rich history in automotive and advanced manufacturing, Side Door Michigan aims to invest in early-stage technology companies in mobility, AI, advanced manufacturing, Industry X.0, space, and next-generation computing.

The fund aims for at least one-third of the portfolio companies to be founded or led by individuals from disadvantaged groups. This commitment extends to very small businesses, as the fund anticipates most of its investees will have fewer than ten employees. Through this strategy, Side Door Michigan plans to build a diverse, dynamic portfolio that reflects its broad investment criteria and supports the growth of Michigan’s technology sector.

Each investment requires a private sector match for MSF funding to be available. In order for eLab to receive the entire MSF commitment, it will be required to raise at least $11.5 million in private sector commitment. Side Door Michigan will be required to raise at least $10.2 million.

Gestamp North America, Inc. to create 580 new jobs by expanding its Michigan manufacturing operations in Mason, Lapeer, and Chelsea, opening fourth location in Chesterfield

The MSF board approved support for Gestamp, a multinational group that specialized in the design, development, and manufacture of highly engineered metal components for leading automotive manufacturers. With its North American headquarters founded in Troy, Gestamp North America, Inc. is planning expansions at three of its Michigan manufacturing operations in Mason, Lapeer, and Chelsea. 

These projects will add new production machinery and equipment to produce new OEM

business components, allowing the company to attract and procure additional production of new components for OEM electric vehicles. Plans for a fourth manufacturing operation, located in Chesterfield, will help to further serve new OEM business and expand the company’s presence in the state.

Gestamp’s investment in growing its presence in Michigan will help support the state’s position as a leader in the future of mobility and vehicle electrification, while bringing immediate job growth in the state’s automotive ecosystem.

“We are happy and proud to have the support from the Government of Michigan to help Gestamp grow our business in this key automotive hub after 20 years of success in the local car industry. With these new projects, Michigan stays and strengthens its position as the main investment and employment state of Gestamp in the United States,” said Luis Ceular, Gestamp US President. “We feel fortunate to get this opportunity allowing us to have a positive impact in the communities where we operate, and to keep developing and employing more associates in Michigan, who are our most valued asset as a business.”

Ceular thanked in particular the MEDC and its local community partners, including the Detroit Regional Partnership, Macomb County Department of Planning and Economic Development, Ann Arbor SPARK, Lansing Economic Area Partnership (LEAP), Lapeer Development Corporation, the City of Mason, and the City of Chelsea.

The project, which involves the creation of up to 580 qualified new jobs and a capital investment of up to $390.2 million across the four locations, is being supported by a $5 million Michigan Business Development Program grant and the approval of two 15-year, 100% State Essential Services Assessment exemptions with an estimated value of up to $4,520,614 for its $211,946,620 eligible investment.