Capitol News

Governor Gretchen Whitmer and the Michigan Strategic Fund Board have announced new initiatives to support housing, innovation, and manufacturing across Michigan. The projects include funding for residential development in Hancock, startup support throughout the state, and investment in a major employer in Three Rivers.

Governor Whitmer stated, “Today’s approved projects are an example of what happens when we work together to put Michiganders first. By building more housing, supporting major employers in our communities, and investing in our entrepreneurs, we’re strengthening the foundation for long-term growth throughout Michigan. Let’s keep working together to support the state’s ‘Make it in Michigan’ strategy to make our state the best place to live, work, and build a future.”

Quentin L. Messer, Jr., CEO of the Michigan Economic Development Corporation (MEDC) and Chair of the MSF Board, added: “From adding critical housing supply in the U.P. to supporting the state’s startup and automotive ecosystems, today’s approved projects reflect Team Michigan’s ongoing commitment to executing the state’s ‘Make it in Michigan’ economic development strategy focused on attracting and developing People, cultivating and revitalizing Places, and competing for and winning Projects. We remain grateful to the volunteer members of the MSF board, community partners, Governor Whitmer, and the Michigan Legislature for the legislatively provided economic development tools that support these projects to help every Michigander ‘Make It in Michigan.’”

In Hancock (Houghton County), a $4.5 million loan from the Michigan Community Revitalization Program will be used to create up to 27 new apartments at a former Finlandia University site. The project will also preserve commercial office space for current tenants including medical professionals while updating underutilized areas for new businesses such as an early childcare provider.

City Manager Mary Babcock commented on this effort: “Rehabilitation and renovation of the building is a top priority for the City of Hancock. The building has seen numerous purposes throughout its history, including most recently as a former university building for the now-defunct Finlandia University. Prior to that, the building was known as the old Portage Hospital building.”

Andy Moyle of Moyle Development said: “After nine months of due diligence, we saw no clear path forward but knew this historic Hancock landmark deserved a new chapter. Our team rose to the challenge, and Skyline Commons will provide vital housing and modern commercial spaces. We’re honored to lead this bold redevelopment, creating a lively hub that will enrich our community for generations.”

The project is expected to offer one- and two-bedroom apartments with rents set between 60% and 100% of area median income; nine units will be reserved as affordable or workforce housing for up to 15 years.

Additionally, $4.2 million from the first-ever Michigan Innovation Fund (MIF) has been allocated among 13 organizations providing startup support services across Michigan. This marks completion of initial MIF disbursements since its creation earlier this year.

Ben Marchionna, Chief Innovation and Ecosystem Officer said: “Michigan is laying substantial groundwork to create an innovation ecosystem like never before, and the Michigan Innovation Fund has been a critical component in demonstrating our long-term commitment. By laying this groundwork and reinforcing our commitment, we are signaling to thinkers and doers across the state, nation, and world that Michigan is ready to help you succeed beyond concept and into creation, from seed to scale, and more.”

Organizations receiving funds include Michigan Founders Fund ($500K), TechTown Detroit ($500K), Henry Ford Innovations ($400K), MTEC SmartZone ($400K), Start Garden ($400K), University of Michigan-Flint ($400K), Ferris Wheel Innovation Center ($250K), Milestone Growth Capital Institute ($250K), Automation Alley ($150K), MichBio ($150K), Michigan Central ($150K), Traverse Connect ($150K), among others.

Alison Todak of MEDC said: “From engaging stakeholders and partners, to disbursing funds in real-time, the Michigan Innovation Fund is answering a significant call from throughout the entrepreneurship and innovation communities. We are proud to lay this important foundation for the future of Michigan.”

The MIF was established alongside legislation creating a research-and-development tax credit aimed at making Michigan more competitive in innovation sectors.

In Three Rivers (St. Joseph County), American Axle & Manufacturing (AAM) received approval for a five-year State Essential Services Assessment exemption valued at nearly $1 million as part of plans for $132.9 million worth of facility upgrades.

Tolga Oal of AAM said: “These investments are necessary to ensure our plant infrastructure and advanced manufacturing processes remain competitive while supporting our highly skilled workforce to meet the strict requirements of our OEM customers. We appreciate knowing that when we’re making multi-year investments in physical and human capital, we’re doing so in a location where we can count on partnerships that are necessary to sustain and grow our Three Rivers Manufacturing Facility to compete successfully in this dynamic, ever-changing industry.”

Jonas Peterson from Southwest Michigan First remarked: “The $132.9 million investment American Axle & Manufacturing is making in its Three Rivers facility is an incredible win for Southwest Michigan. This commitment will position the plant and community for long-term success. By designating Three Rivers as its Center of Excellence, AAM is not only elevating the facility’s capabilities but also shining a spotlight on the extraordinary talent and craftsmanship of our regional workforce. We’re deeply grateful for AAM’s continued investment in people, innovation, and community partnerships that strengthen the entire region.”

According to terms outlined by MEDC officials all investment figures represent commitments made by businesses with reimbursement based on eligible expenditures; agreements may be amended or canceled if commitments are not met.