LANSING – The Michigan Economic Development Corporation on Wednesday announced the Michigan Strategic Fund approval of issuance of bonds for the new events center in Detroit, as well as renewal of the State Trade and Export Program and incentives to 11 business expansions and community improvement projects around the state.

The authorization of the issuance of private activity bonds to finance the construction of a new entertainment and commercial district in Detroit will help to construct a multipurpose events center expected to be the future home of the Detroit Red Wings. The project is to be owned by the city of Detroit Downtown Development Authority and operated by Olympic Development of Michigan Events Center, LLC.

The MSF approved the project in July 2013 along with the incentive resolution for $450 million in private activity bonds.

STATE TRADE AND EXPORT: The MSF also approved funding for MEDC to provide financial assistance for international marketing-related activities to Michigan companies that meet the Small Business Administration small and medium-sized enterprise guidelines and size standards.

The funds are being awarded through a $500,000 federal award to the State of Michigan under the SBA State Trade and Export Promotion program, the MEDC said. The STEP program provides direct reimbursements to eligible companies for international marketing-related activities ranging from market research to participation fees for international trade missions.

Michigan was one of three states to receive the maximum award for fiscal year 2015.

BUSINESS EXPANSIONS: American Axle and Manufacturing, Inc., plans to renovate a vacant manufacturing building adjacent to its current headquarters in Detroit to establish a new tech center and showroom. The project will generate a total capital investment of up to $15.4 million and create 75 jobs, resulting in a $1 million grant from the MSF. Michigan was chosen over competing sites in multiple states, the MEDC noted.

In Van Buren Township, Costco plans to construct a new distribution warehouse facility, investing up to $47.9 million and creating 126 new jobs. It was awarded a $450,000 grant, and Michigan was chosen over competing sites in the Midwest.

And in East Lansing, International Business Machines Corporation, known as IBM, plans to increase employment at its Services Center, investing $200,000 and creating 100 jobs. The project was awarded a $500,000 grant. The company had the option of expanding at its application development centers in Louisiana and Ohio.

In Greenville, Dicastal North America, Inc., will open a new aluminum alloy wheel manufacturing plant at its existing facility expected to produce 3 million wheels annually. It will also be constructing additions to the facility, investing about $140 million and creating a total of 300 jobs, earning a $3.5 million grant and a $5 million Community Development Block Grant for the acquisition of the building. Michigan was chosen over competing sites in multiple states, the MEDC noted.

In Walker, Plasan Carbon Composites plans to invest in additional infrastructure and renovations to expand production capability. The project will generate a total capital investment of more than $29 million and create 620 jobs, resulting in $6 million of economic assistance with repayment terms. Michigan was chosen over competing sites in Ohio, Indiana and Vermont.

COMMUNITY IMPROVEMENT PROJECTS: Various projects in Detroit, Dearborn, Grand Rapids, Northville Township and Sturgis were also approved for Community Revitalization Program grants or equity investments.

The projects are as follows: A five-story residential unit on top of the 10-level parking deck adjacent to the Westin Book Cadillac Hotel in Detroit; construction of a new, mixed-use Hampton Inn on Michigan Avenue in Dearborn; the redevelopment of an office building located at Monroe NW and 804 Bond Avenue in Grand Rapids; converting a former state hospital campus generally located at 7 Mile and Haggerty into a public green space and trail system in Northville; and the renovation of historic buildings into a restaurant and sports bard in downtown Sturgis.

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