Granholm announces tax breaks for Detroit projects

[DetroitMan]

Governor Announces Support to Create New Housing and Retail Opportunities in Detroit

Parking Structure Will House New Retail Businesses, 54 New Jobs Expected

Governor Jennifer M. Granholm today announced that two blighted properties in Detroit will be transformed into housing, retail and parking facilities, creating up to 54 new jobs. The projects, assisted with more than $3 million in brownfield Single Business Tax credits from the Michigan Economic Development Corporation, are expected to generate more than $80 million in private investment.

"Healthy, vibrant cities are vital to maintaining a strong economy in Michigan," Granholm said. "By revitalizing these sites, we help attract businesses, jobs and residents to the heart of the Detroit."

The projects are:

MOT, LLC (Michigan Opera Theater) will use a tax credit valued at more than $1.5 million to help demolish and rebuild a blighted parking structure it recently acquired. The new 783-space facility will also include 20,000 square feet of retail and office space along Broadway Avenue in Detroit's central business district. The parking structure will be completed on October 1, 2005 and the commercial space is expected to be finished by December 2005 in time for the Super Bowl. MOT will invest $20 million in the project, which is expected to create 54 new jobs.

Scripps Park Associates, LLC in partnership with the city of Detroit and the Detroit Housing Commission will invest approximately $60 million to redevelop the former Jeffries Homes public housing site located near the intersection of West Forest Avenue and the Lodge Freeway. Part of the site has already been redeveloped into rental units; the remainder of the site is tax-reverted. An SBT credit valued at $1.5 million will support phase two of the project, which involves the construction of 98 residential units. The new development will be known as Woodbridge Estates.

The Detroit brownfields are among seven economic development projects the Governor announced today. In all, they are expected to create and retain a total of 25,441 Michigan jobs, including 7,003 directly by company expansions and redevelopments.

"These projects represent the latest examples of how Michigan's brownfield redevelopment incentives are being successfully employed for Detroit's benefit," MEDC President and CEO Don Jakeway said. "The redevelopment of these very visible properties in the heart of the city will help brighten Detroit's image and lead to increased future investment."

In her 2005 State of the State address, Granholm emphasized the importance of making Michigan a global economic powerhouse in the 21st century. In the past 12 months the Governor and the MEDC announced the creation or retention of more than 80,423 jobs as a result of targeted assistance provided by the MEDC.

The Michigan Economic Development Corporation, a partnership between the state and local communities, promotes smart economic growth by developing strategies and providing services to create and retain good jobs and a high quality of life.